1st Quarter Property Sales Review: Plett 2019

Category Property Sales in Plettenberg Bay

1st Quarter Property Sales Review: Plett 2019

We are now officially in the post-election, mid-winter economic blues, so to speak. We've just passed the halfway mark in another turbulent year and South Africa's economy is in a bit of a go-slow, or full economic recession depending on who you speak to. Whatever you call it, our economy is struggling, and an inevitable consequence is that the property market will struggle as well. The results from the first quarter property sales in Plettenberg Bay for 2019 will bear that out. We'll take a closer look soon.

What's important to remember is that the property market is unpredictable, but over time remains one of the most stable and reliable investments of them all. It is not a short term game though, and while sellers may struggle to get over-inflated prices as they do in boom periods, those with realistic expectations will always sell. For buyers, whether a first-time buyer or a seasoned investor, now is a good time to buy. Let's take a look at property sales in the Plettenberg region for the first quarter of 2019.

The Numbers

Sales in the 1st quarter of 2019 are down by 27.47% compared to 2018; that's 103 properties sold in 2019 compared to 142 in the same period in 2018.

When it comes to price, two price brackets showed an increase in sales volume in 2019, these are the R3-4M and R5-7M brackets.  The R5 - 7M bracket saw an increase of 125%, 9 sales in 2019 compared to 4 in 2018, and sales in the R3-4M bracket increased by 25%, 10 sales in 2019 compared to 8 in 2018.

Besides the R15M and above bracket, which remained the same, the volume of sales in all other price brackets decreased.

The Suburbs

Amongst the suburbs, Keurboomstrand remains on top with 13 property sales of which more than half were below R2M.

Plettenberg Bay witnessed just 7 sales in the first quarter of this year compared to 22 in 2018 moving from 2nd to fifth place.

Seaside Longships, on the other hand, remained unchanged achieving 11 sales in both years.

The most dramatic change in sales by suburb was seen in Schoongezicht with sales increasing by 400%, 5 properties sold in 2019 compared to 1 in 2018. Helen Melon Properties negotiated two of the five sales. Properties in the estate represent excellent value.

The Apartments

This year saw 17 sectional title units sold in the first quarter compared to 63 in 2018. A drop of 73%.

The Farms

Interest continues for farms and smallholdings, with an increase of 12.5% in sales for the 1st quarter 2019. 9 Properties sold in 2019 compared to 8 in 2018.

The Top End (R5 - R10m)

12 Properties sold in this price bracket in the first quarter of this year. Of the 12 sales, 6 were in Lifestyle Estates and 1 a sectional title unit in Seaside Longships.

During this period only 4 properties above R10m were sold, 2 of which were large pieces of land bought by the Bitou Municipality for a housing development project.

The Other News

We're reading news of deflation hitting upmarket Cape Town property prices. About time we say, also a good time for a market correction. News is that despite the sluggish economy, tourism is doing well, and hopefully, we have overcome the post "water crisis" period, which affected not only Cape Town, but the ramifications were also felt in our region. As we move into the third quarter, only time will tell what the property market will do, but we'll keep you up to date. Look out for our second quarter review coming up and feel free to contact us to discuss your property requirements.

Yours in Property

Helen Ward

Principal Helen Melon Properties

Author: Helen Ward

Submitted 12 Jul 19 / Views 783

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