Cash buyers are doing the rounds in Mossel Bay as property prices shift down a notch.
That's the news from George Krause, principal of leading local agency Homenet Mossel Bay, who says that properties priced around R1m are "best sellers" at the moment, with the majority being snapped up by cash buyers from the inland provinces.
Mossel Bay is home to a healthy mix of properties ranging in price from R600 000 for a sectional title unit to as much as R6m for a luxury freehold residence. But while properties in the higher price brackets are moving slowly right now, entry-level homes are selling well as owners cotton on to what bargain hunters are looking for.
Krause says Johannesburg buyers feature strongly. "They've recognised the investment potential of a softer property market at the coast and are buying cheap while the going is good."
A number of buyers are also buying-to-let to take advantage of the strong rental demand currently manifest in Mossel Bay. Long-term rentals range between
R3000pm and R7000pm and holiday rentals vary from R200 to R500 a day during peak seasons.
A popular coastal town, Mossel Bay is a Garden Route destination of choice and offers a balanced and appealing lifestyle. Residents enjoy all the amenities of a major city without the "crime and grime". Popular holiday activities in the area include cage diving with sharks, chartered fishing and golf.
Development in the area has been brisk over the past few years with developers typically finishing one project and moving directly on to the next. This momentum has however slowed recently, as the economic downturn takes its toll, and that is underpinning the demand for existing homes.
Meanwhile, auctions and foreclosures have yet to occur on any noticeable scale as homeowners tighten their belts and employ survival tactics. Many extended families are now selling their existing properties, pooling their funds and purchasing properties that include a granny flat or cottage to house extra family members.
ISSUED BY HOMENET