Garden Route becomes SA’s new property hot spot
According to estate agencies on the Garden Route, this area is seeing aboveaverage market action.
Since the start of June, after the hard lockdown, renewed activity in Plettenberg Bay meant that a number of offices recorded their best ever sales for the month of July. In neighbouring George and Knysna, recovery was a little slower.
Sheena Mare, broker principal in Knysna and Sedgefield for Lew Geffen Sotheby’s International Realty, says sales were down by 80% for April and May, but August was a bumper month with sales exceeding average levels. “Properties under the R2m mark are most in demand and those that are well-priced and require little renovation are selling quickly,” she says.
“Most of our buyers are families with schoolgoing children and retirees relocating to the Garden Route for lifestyle reasons. Sellers are predominantly retirees and empty-nesters who are downsizing or moving to retirement accommodation and locals who are up- or downsizing.”
This is corroborated by Lightstone Property data that suggests 47% of all recent sellers were aged 65 and older whereas
37% of buyers were aged between 36 and 49, and 12% were 35 or younger.
Lightstone research also shows the median sale prices for freestanding homes, sectional title properties and vacant land in Knysna all rose this year from R1.4m to R1.6m, R835,000 to R895,000 and R500,000 to R585,000 respectively.
Steven Neufeld, manager principal at the Plettenberg Bay office of Lew Geffen Sotheby’s International Realty, believes pentup demand and the low interest rate are behind this renewed activity.
“Prices have remained relatively stable this year despite the lockdown lull, but when one considers the difference in the monthly bond repayments with the current interest rate and that most people had to postpone moving plans for several months, it’s not surprising some properties are now achieving full asking price,” he says.
“We also had an annual record sale price this year with the sale of a R44m home in a beachfront gated estate that was brokered by our broker principal, Hein Pretorius.”
Neufeld predicts the revival of the semigration trend will further bolster the Garden Route market after the lockdown.