First Half Sales in Plettenberg Bay of 2017

First Half Sales in Plettenberg Bay of 2017

Category Property Sales in Plettenberg Bay

Time to stop to smell the flowers

As we head in to the final quarter of what’s been a whirlwind of a year so far, it’s not a bad idea to slow down a bit and reflect. With regional water crises, ongoing political shenanigans and unhinged international leaders dominating the headlines, it’s OK to feel uneasy. While fear often dominates the local news landscape, it’s pretty obvious that South Africa is still one of the best places to live in the world, even with our political and economic unease.

We who live in Plettenberg Bay feel particularly blessed, and recent sales figures for the area show that many people feel the same way, with property in the region remaining an excellent lifestyle and investment choice. We take a look at the numbers below and we summarize the property transfer movements for the first half of 2017.

We also look at the effects of the July repo cut, and what stepping out of the recession means, if anything, for the property market; finally, we reveal our Helen Melon Buyers Profile, an intriguing look at where our buyers come from.

Repo Rate cut in July

In July the Reserve Bank cut the repo rate by 25 Basis Points, edging it down to 6.75%. (The repo rate is the rate at which the central bank lends money to every day banks). The repo rate had until now remained unchanged at 7% since March 2016. Comments Helen Ward, Principle of HMP, “While the change is small, it is not insignificant. The repo rate drop, when combined with other factors like exiting the recession is adding more confidence to an already robust local property market. This is not always in evidence when you read the news. Either way, we’ll take the cut.”

Out of the recession

While many people continue to predict doom and gloom for South Africa, those that live here know better. So, while entering the recession was a blow, it was more a technical recession than anything else, and we’re now, technically, out of it. Here’s a simple explanation.

In June 2017 it was announced that South Africa had entered a technical recession after the economy contracted for a second quarter in a row. SA’s economy shrunk by 0.7% in the first quarter of 2017 after contracting by 0.3% in the fourth quarter of last year. It’s kind of like two losses in a row and been kicked into touch, or being sent to the naughty corner.

The good news is the economy has rebounded. Recent stats indicate that SA’s economy grew by 2.5% in the second quarter of 2017. Meaning, we’re back in the cool club. Well at least financially; either way, we’re not technically in a recession anymore.

Property sales in Plettenberg Bay for the first half 2017:

So, does all this good news effect the property market? Good news is always welcome in any market. The local property market in particular continues to be strong and stable, and the interest rate cut is most welcome. But more importantly, sales figures show that when an area is desirable, one where lifestyle choices become excellent investments, and often vice versa, demand will always prevail. We take a look at the main talking points to come out of this year’s first half stats.
 

Main talking points.

Sales growth in Plettenberg Bay & surrounding suburbs

• There were 368 sales in the region in the first half of 2017, up from 270 in the same period last year. This is a 36% increase.

• Sales in the first quarter of 2017 are up 89% compared to 2016
• Sales in the second quarter of 2017 were down by 13% with 171 sales registered, compared to the 197 sales registered in the first quarter of 2017.
• Historically, the majority of sales take place between January and May (i.e. when the deed of sale is signed). Using this as our basis, and using 2016 as a projection yardstick, we predict total sale for the year will be close to 790.

• Top Five: Volume of sales by suburbs

Worth noting:

• Goose Valley and Brackenridge are both out of the top 5 compared with 2016. Whale Rock suburb has moved into top ranking from 4^th in 2016.
• Farms and Small Holding are still on the increase; Bitou Nu and Knysna Road increased by 125% (27 Sales) in 2017, compared to their 16 sales in 2016. This area has also made it into the top five performing suburbs by volume in Plett for the first time. Is this trend showing a lifestyle choice?
• Suburbs with increases above 100% include Upper Central, Lower Central, Bitou Nu and Knysna Rd, Lower Robberg.

Property Sales by Value 2017

These numbers always make for interesting reading, but the highlights are:

• Properties under R2 million comprise 71% of all sales in the region; 262 properties sold in the first half of 2017, representing an increase of ±49% compared to 2016.
• Movers & shakers

• Helen Melon Properties buyers profile

And, finally we take a look at our buyers’ profile for 2016/2017. Where have our buyers come from?

• 55% Gauteng
• 17% Plettenberg Bay Bay
• 8% Eastern Cape
• 7% abroad
• 6% from the Western Cape
• The remainder is spread among KZN, Mpumalanga and North West Province.

So, happy spring everyone, and if you looking to chat about your property or the property market email us, call us on 044 533 1589, or pop in for a coffee at our offices at 5 Formosa Place, corner Main and Crescent Streets.

Yours in Property

Helen Ward (Principle, Helen Melon Properties).

www.helenmelonproperties.co.za

Author: Helen Ward