There has been a resurgence in buyer interest in prime waterfront homes along Garden Route and in the Eastern Cape, agents say.
Real estate agents have noted a renewed interest in prime waterfront properties and apartments along the Garden Route and in the Eastern Cape, owing to limited availability and global economic uncertainty.
Pam Golding Properties (PGP) has even reported that sales in excess of R10m are being achieved.
Patrick Barnard of Patrick Barnard Properties in Plettenberg Bay says agents have received more inquiries of late regarding waterfront properties along the beachfront, as well as along the river and estuary.
“One must remember that with new environmental legislations, waterfront properties are becoming scarce. In these uncertain times, the discerning buyer has decided to invest in waterfront properties, as these are becoming a scarce commodity. The property market goes through various cycles, but waterfront properties will always increase in value,” he says.
According to Barnard, waterfront properties also offered the buyer a fantastic lifestyle and were more attractive and desirable than other properties. “Popular areas in Plett are Poortjies, Robberg Beach and Beachy Head. Waterfront properties in the area can start from around R8m and can go up to R40m, and even R50m,” he adds.
Gerrie Nieuwenhuis, principal and licensee at Seeff Properties in Jeffreys Bay, says that since December last year, agents had noticed renewed interest in the demand for beachfront properties, as well as for properties along the canals of the popular Marina Martinique.
It is very difficult to say what has led to this renewed interest. It may have been due to investors who have received dividends and who have then decided to use this to invest in property. Jeffreys Bay offers fantastic value for money, along with good views and stylish and modern properties along the beachfront
he says. Nieuwenhuis says buyers were inquiring about properties ranging from around R1,5m to around R4m.
Area manager for PGP in Jeffreys Bay Jaco Bothma says the increase in prices was also because of a lack of stock, as there were very few beachfront properties on the market.
“About 10 months ago, a beachfront property sold for R10,5m – the highest price achieved in ‘J Bay’ – and it wasn’t even on the market. This is a property that was acquired for R5,2m in 2006, reflecting sound capital growth of more than 100% over an eight-year period. Currently we have a handful of beachfront homes priced at R24m, R18m, R11,9m, R7,5m and R4,9m,” he says.
On the canals in St Francis Bay, a home that was rebuilt following the devastating fire in the village late in 2012 recently fetched R12m. Richard Arderne, PGP’s area principal, says there have been three sales in excess of R10m in St Francis – all on the canals. The highest price to date was a R21m sale that took place in 2008.
This article originally appeared in Neighbourhood, Sunday Times.
