Plett. A look back at 2017 Property Sales

Plett. A look back at 2017 Property Sales

Category Property Sales in Plettenberg Bay

While late last year Cape Town was in the midst of its worse drought in decades and Zuma was continuing to wreak havoc on our beautiful country, today Cyril Ramaphosa is slowly but surely leading us out of the mess, Cape Town is seeing some decent rainfall and dam levels continue to rise. But what has all this done for our property market and what is the prognosis moving forward? We take a look and then explore the property figures for 2017.

Good News

Interest rates lowest in two years

The positive start to the year was further enhanced in March when the South African Reserve Bank (Sarb), announced a cut in interest rates by 25 basis points resulting in a repo rate of 6.5% and a prime lending rate that now sits at 10%. The cut was solidified in May when the Sarb announced that the repo rate would remain unchanged.

Commentators and policy makers seem cautiously optimistic about SA’s economic future, but are remaining tight lipped at the moment. Exactly what kind of influence the “Ramaphosa effect” will have, only time will tell, but the signs are encouraging.

The Ramaphosa Effect

While Cyril Ramaphosa may not be a miracle worker and Knight on a white horse that we all want, there is no doubt that a new sense of optimism has come over South Africa. It appears that we have finally turned the table on state capture, corruption and a wayward president, more concerned with self-preservation than ever carrying out his mandate to serve the people.

The era of Cyril is already making South Africa look like a much better investment opportunity. Add to this the upgrade to SA’s credit ranking by rating agency Moody’s from negative to stable and the interest rate cut, all signs are that buyers/investors will soon start buying property again after a slight cooling off period the last 8-12 months.

Other news

Land reforms

The inauguration of the new president has prompted renewed debate on how best to proceed with land reform. The discussions around expropriation without compensation have spooked many people, but has not, despite many predictions, had much of an impact on the country’s economic growth. While land reform is a long overdue and important matter, it’s best to avoid the political hype and opportunism that will always accompany such a delicate subject.

The Plett Property Market -  2017 was a good year!

After the market crash of 2008, it was only in 2014 that sales by volume grew significantly in the Plett region. In total sales by volume in 2017 (642 properties sold) were up by 34.59% compared to 2014 (477 properties sold).

We take a look at some of the highlights from 2017:

• Sales are seasonal with the majority taking place in the first quarter of the year
• First half sales by volume for 2017 were up by 36.3% for the same period in 2016
• Sales by volume for 2017 (entire year) were up 10.88% compared to 2016
• 69.32% of all sales by volume in 2017 sold for below R2M
• 87.79% of all sales by volume in 2017 sold for below R4M
• 12.33% of all sales by volume in 2017 sold for R4M+
• In 2017 nine properties above R15 million were sold
• The most expensive property sold last year was in Seaside Longships – R36 million

Generally speaking, the greatest returns were seen by properties within gated estates, specifically Whale Rock Ridge and Brackenridge. Property sales in the R7 – R10 million price range in gated estates show a marked increase compared to 2016. Seaside Longships remains the market holder in this price range.

2017 SALES BY SUBURB BY VOLUME

2017 SALES BY VALUE

Enjoy the winter rain, especially Capetonians, and if you are 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  5 Formosa Place, corner Main and Crescent Streets.

Yours in Property
Helen Ward (Principal, Helen Melon Properties)
www.helenmelonproperties.co.za

Author: Helen Ward