A sole mandate held by Hein Pretorius of Sotheby’s International Realty Plettenberg Bay in 2013 achieved the highest price for a beachfront property in Plett at R45million for a mansion on a large site on Robberg Beach.
Overall, the market remained relatively constant over the past five years with between 200 and 300 units sold per annum. Average selling prices have increased since the peak in 2008 by 3%. Though too early to tell, it appears that 2013 will be similar to 2012.
The average price for freehold property is currently around R2,5million (including vacant plots and houses) and for section title units about R1,1million.
Entry levels remain relatively low, by Plett’s standards, for first time buyers and those looking for an affordable holiday property, though limited stock is available. The entry level for houses is about R950,000 (off a high of R1, 4million in 2007). The entry level for apartments is R400, 000 (bachelor). Vacant land starts at about R225,000.
The record price so far for non-commercial property was R50 million for a luxury coastal estate sold in 2006, also sold by Hein Pretorius.
Over the past eleven years average prices in Plettenberg Bay have grown annually at an average of approximately 13%, which demonstrates that property in Plett is a good investment if bought at the correct price. It is currently a buyer’s market.
“Though there is an oversupply of property, stock levels have declined in certain segments, particularly the upper end of the market, where choice is diminishing and values are increasing. Unfortunately most South Africans find themselves in a difficult financial situation, so are unable to take advantage of these opportunities,” said Pretorius.
Four properties transferred in the town of Keurbooms in 2012 for an average of R3million. Seven properties transferred in Natures Valley for an average of R2,8million. In Wittedrift 6 properties transferred for R560,000 on average.
The figures above were taken from deeds information on the 15th of July 2013. Sales are listed by date of sale, not transfer date to provide a more accurate depiction. Rural property, sales below R100 000 and duplications (e.g. when a developer buys numerous properties for a single price and each is listed at the full price, only the single figure is taken) are not included in the figures. A number of sales are still in the registration process, so the picture will change somewhat.
This report was compiled by Steven Neufeld, Manager of Lew Geffen Sotheby’s International Realty Plettenberg Bay and Professional Associated Valuer and Appraiser for South African Property Valuations. “mailto:firstname.lastname@example.org” email@example.com 044 533 2529 (or) 072 417 7731•