Strong holiday property market in coastal towns

As the summer holiday season draws to a close, Harcourts SA, a leading real estate company with offices across the country, has reported a strong property market in many coastal towns, driven in part by ‘semigration’.

With increased interest rates affecting the property market, many were curious to see how this would affect holiday property sales and rentals.

According to Harcourts, many of its offices in holiday towns saw an increase in demand for both sales and rentals during the summer season, compared to the same period last year.

This suggests that buyers and tenants are still looking to invest in coastal properties despite the economic climate. “In spite of the challenges of the Covid-19 pandemic and economic uncertainties, we have seen a robust market in many coastal towns,” Harcourts SA CEO, Richard Gray said.

Harcourts’ data also showed that many coastal towns experienced an increase in the average property price during the summer holiday season.

“This is good news for buyers and sellers alike, as it shows that coastal properties can still offer a good return on investment,” Gray said.

Harcourts’ agents noted that there was a particular interest in properties that were close to the beach or had sea views, as well as those that offered good rental potential.

This is in line with previous years.

Apart from the usual holiday market, Harcourts observed that semigration continued to provide a strong push to coastal towns.

Most coastal towns are within 90 minutes of the closest airport, making them within reach of most business hubs.

Many families have and continue to relocate to coastal towns around the country, driven primarily by safety concerns and quality of life.

General infrastructure improvements in many coastal towns have also kept up with the influx of buyers and families, with more shopping, recreational, medical, school and business facilities.

“Semigration has been a driving force behind the growth of the coastal property market in SA,” Gray said. “It's no longer just about buying a holiday home, it’s about investing in a new lifestyle.”

Residential property developers are also starting to unlock more investment opportunities in coastal towns, with more retirement developments coming onto the market.

While the coastal property market has been robust, Harcourts notes that there are still challenges, such as the impact of increased interest rates, which may affect affordability for some buyers.

Many families have and continue to relocate to coastal towns around the country, driven primarily by safety concerns and quality of life