Plett property market eases during Third Quarter
Category Property Sales in Plettenberg Bay
Helen Melon Properties has shown some resilience in an unsettled property market in Plettenberg, according to new figures released by the Deeds Office.
The third-quarter figures of property transfers registered in Plettenberg Bay showed that, while there was a drop in overall sales compared with the same period last year, Plett is still 3,2% ahead on last year's figures.
With another 75-basis-point hike last week by the Reserve Bank, taking prime rate to 10,5%, it will mean that a bond holder with a R2m bond will now pay just under R1000 a month more on their repayment.
With rising interest rates, low stock and buyers seeking higher than normal prices, Plett's property sales have eased during the third quarter and with the latest rate increase could ease further.
Yet the total value of properties sold in the first three quarters of 2022 was a staggering R2,3-billion.
Plett's market also appears to be a seller's market following a significant "semigration" trend of people moving to Plett and the demand for properties. Estimates given and collated from schools and municipal sources show between 700 and 800 new families moved to Plettenberg Bay in the last year.
"Despite increased pressure on homebuyers, like the interest rates and rising costs in general, we seem to be holding our own in the current market," says Helen Ward, Principal of Helen Melon Properties. "But indications are that we could be levelling off and that any new higher interest rates, which are inevitable according to the Reserve Bank, might affect property sales," says Ward.
Top performers in the first three quarters of the year were Keurboomstand with a total of 92 sales (12,11%) in all price categories. Then followed Whale Rock with 86 sales (11,32%), Sea Side Longships 62 (8,16), Bitou Nu and Knysna Road- farms- 59 (7,76%) and Cutty Sark 53 (6,97%).
Another significant statistic is that there were a total of 63 sales in the R5m to R7m bracket in all areas, both established suburbs and outside areas, compared with 38 for the same period last year. This reflects a 65,79% increase.
Author: Helen Melon Properties