Advertisement
THE GOOD LIFE: A surge in semigration since the pandemic has bolstered the coastal market, especially in the Western Cape’s where towns like Plett where homes like this stunning designer Signal Hill Home are being snapped up by upcountry buyers. On the market for R29 000 000, with panoramic views, it boasts an array of high end finishes and modern features like a solar energy system and spacious gym with sea views
Although the market in the Western Cape’s coastal towns has stabilised since the post-pandemic surge which began in 2020 even before the lockdown ended, property prices have continued to rise with double-digit growth still being seen in the most popular enclaves.
According to Steven Neufeld, Manager Principal of Lew Geffen Sotheby’s International Realty Plettenberg Bay, the average house price increased by a whopping 31% increase in 2021 and from R2.48 million to R3.92m then only by 9% to R3.92m in 2022, but last year it spiked again by 26% to R4.84m.
And although the average sectional title value rose by just 4.3% to R1.8m, in 2021 it hit double digits when the average selling price increased by 27% to R2.32m in 2022 and again in 2023 by 16% to R2.69m.
“Plettenberg Bay normally follows behind the Gauteng property market by about 6 months, but in this property cycle Plett bucked the trend due to the big post-Covid-lockdown semigration and continued to climb during Gauteng’s downturn.
“Essentially prices increased as stock decreased, but the market slowed considerably in the second half of the year and stock levels are starting to recover.”
Advertisement
He adds that entry-level asking prices in Plett have also increased considerably over the past four years.
“These days, it is difficult to find full title homes below R3.5m with sectional title unit prices starting at R1.3m. Vacant land starts at about R550,000 in gated estates and R800,000 in open areas.”
Buyer demographics have remained stable during this period with two notable exceptions in 2023.
“The majority of our buyers since 2020 have been from Gauteng and Plett itself with an even 50/50 split, followed by Cape Town (±12%) and international buyers (8%).
“However, last year local buyers nudged ahead of Gauteng buyers and the number of international buyers increased to around 16% of all our sales.”
Neufeld attributes the former to the growing number of permanent residents in the town and the latter to the fact that High New Worth Individuals (HNWI) globally have begun to diversify their portfolios and are buying property outside of traditional markets like Europe.
Knysna has also been attracting upcountry buyers who are looking to relocate their families and, according to Lightstone data, the median house price increased by a notable 47.6% in 2022 to R3.1m, up from R2.1m in 2021, and last year it rose again by 12.9% to R3.5m. The previous record-high median price was R1.7m in 2017.
Sectional title prices in this scenic town held steady, rising only marginally between 2020 and 2022, but last year the median price jumped by 39%, from R1.2m to R1.67m.
In Hermanus, the surge in semigration saw the median house price spike by 51.4% in 2022 when it increased from R1.75m to R2.65m, although it did stablise last year, dipping to R2.1m. The previous record-high median price was R1.95m in 2020.
That said, the median price of an estate freehold home is currently around R.7m, and houses at the entry-level are becoming scarce.
Sectional title median prices in this enclave also remained steady, hovering between R1m and R1.1m mark until last year when it increased by 65%, from R1.12m to R1.85m.
According to Hein Pretorius, owner broker of the Plett office, now is a good time to sell as the market appears to be peaking, though demand is still high for correctly priced properties. And, for buyers, Plett remains a popular destination and there is still limited stock, so if you see something you like it’s best to act quickly or risk losing out.
“For the past 20 years small towns like Plett have had an oversupply of vacant land but these finally started selling out and have sold out quickly over the past few years and now that there aren’t many stands left, it is mainly houses making up the sales and pushing the average prices up.”
He adds that although most of the demand is from entry and mid-level family homes, high end properties continue to sell well and there a few gems available.
“I’ve just listed a stunning 732m² house on Signal Hill with magnificent views for R29million, and, in my opinion, it is one of the most beautiful homes in Plett.”
