First quarter sales in Plettenberg Bay
Category Property Sales in Plettenberg Bay
The heart of the Garden Route beats strong!
We’re halfway through the year, and boy has it being a bumpy ride. With the smell of smoke still in the air and the devastation of the Plett and Knysna fires apparent everywhere, we still mourn the loss of life and count the cost of the devastation to property and land, as well as the effects that this fire has had on our community. But we must also applaud, first the 1000+ firemen from around the country who descended on the Garden Route, not for a holiday as most would like, but to fight one of the biggest fires the region has ever seen. We can’t thank you enough!
We also applaud the people of the Garden Route who have shown courage, compassion and true grit in equal measure. The fire was awful but it did make me proud of the community I live in. The good news is, we are open for business in Plett and the entire region, the rebuilding continues.
Talking about business, we take a look at the first quarter sales figures for Plettenberg Bay and the surrounding suburbs.
First quarter property sales comparison for Plettenberg Bay
Here are at the figures for the first quarter property sales in Plettenberg Bay compared to the same period last year. Here’s what we found:
- Sales growth by volume continues to grow. 2017 saw 197 sales in the first quarter, 89.42% up from the 104 sales in the same period last year.
- Bowtie sales decreased by 57.14% with three sales in 2017 compared to seven in 2016, River Club dropped by 22.22% with seven sales this year down from nine in 2016.
- Lower Central, Poortjies and Robberg Ridge had the same amount of sales in 2017 as in 2016.
- Farms and small holding showed a marked increase; Bitou Nu and Knysna Road increased by 333.33% (13 Sales in 2017), compared to the three sales last year during the same period.
- The rest of the suburbs performed well, all increasing their sales. Suburbs that stand out with increases above 100% include Brackenridge, Lower Robberg, Signal Hill, Upper Central, Upper Robberg, Whale Rock and Wittedrift.
- Cutty Sark and Barons View made sales in this year’s first quarter, where none were made in last year’s first quarter.
Property sales by value - Highlights
- There were three sales in the R10M – R15M bracket, up from 0 last year.
- There were 5 sales in the R7M -R10M brackets up from 2 last year (250% increase)
- There were 10 sales in the R3M – R4M brackets up from 5 last year (100% increase)
- Property sales under R2 million went up by 97.36% in 2017 compared to 2016
- Property sales under R2 million comprised 76% of total sale for the first quarter of 2017 (150 properties sold) this is almost a 3% increase from 2016 which saw 76 sales comprising 73.1% of total sales.
- Of interest sales in the R4M – R5M bracket saw a decline of 66.66%. 1 property sold in 2017 compared to 3 in 2016.
Gated Estates:
The first quarter of this year saw a 94% increase in sales in the top gated estates in Plettenberg Bay
Sales in the larger gated estates for the first quarter of 2017 make up 33% of total sales. This percentage could well be higher as we have not taken in to account the gated estates in the Keurboomstrand area, The Hill, or properties sold in estates that are share block schemes.
Sales in the gated estates of Whale Rock accounted for 47.96% of total sales during 2017 compared to 25.81% in 2016. 31 properties sold in Whale Rock during 2017 compared 8 in 2016.
Is the Western Cape South Africa’s Florida?
The Western Cape is starting to take on the mantle of South Africa’s Florida. A place that senior citizens choose to retire. In 2016, more than 70% of sales in certain suburbs were made up of buyers older than 65.
Lightstone has tracked property sales in the Western Cape since 2005, when 22% of residential properties were sold to seniors. This increased to 35% last year, a clear indication that more and more of our elderly are choosing to live out their golden years in the Western Cape.
What the recession means for homeowners
Many homeowners and potential buyers have approached us to ask how the recession will affect their decision to buy property or the value of their current property.
As always, we recommend that no one makes a quick decision based on the fact that we are in a recession. Property has proven itself as one of the most reliable investments, one that can ride out recessions, and still leave you with a valuable piece of real estate.
What you do not want is for your property to enter negative equity – a scenario where the market value of your property falls below what you owe on your mortgage. The way to prevent this is to put whatever extra cash you can into your bond.
Interest rates
In previous recessions, the Reserve Bank has been able to lower interest rates to boost the economy. This is always a delicate balancing act and any interest rate drop will be small, but every bit helps.
For buyers with deposits, this can be an excellent time to buy. We suggest you get all your finances in order, allowing you to make a quick decision when you find the right property.
If you are unsure what to do in this uncertain time, please contact us or pop round to our offices in Plett for a chat.
Note:
- Suburbs used in this comparison were Baron’s View, Bowtie, Brackenridge, Cutty Shark, Goose Valley, Keurboomstrand, Lower Central, Lower Robberg, Piesang Valley, Plettenberg Bay, Poortjies, River Club, Robberg Ridge, Schoongezicht, Sea Side Longships, Signal Hill, The Crags, Upper Central, Upper Robberg, Whale Rock, Bitou Nu, Wittedrift.
- Statistics for actual sales do not include transfers for no value, i.e. deceased estates, transfers from entities or natural person, etc. and sales in life right and share block schemes.
- All information sourced from Lightstone
Author: Helen Ward
