HOL­I­DAY SLOW-DOWN

There is less move­ment in the cur­rent tough sales mar­ket, but there are al­ways peo­ple look­ing to buy

Weekend Argus (Saturday Edition) - - PROPERTY360 - BONNY FOURIE bron­wyn.fourie@inl.co.za

THE HOL­I­DAY home mar­ket in the West­ern Cape is be­ing hit hard by the eco­nomic con­di­tions, de­spite the province be­ing a ma­jor tourist des­ti­na­tion.

Hol­i­day home pur­chases are still tak­ing place, but sales have slowed, agents are re­port­ing.

The mar­ket has un­doubt­edly slowed along with the eco­nomic and po­lit­i­cal cli­mate, but as Cape Town is a tourist cap­i­tal and des­ti­na­tion there are “al­ways peo­ple look­ing to buy”, says Ta­mara Nettmann, a prin­ci­pal at Cen­tury 21’s West­ern Se­aboard of­fice.

“It has been a lit­tle qui­eter, but with the De­cem­ber swal­lows vis­it­ing our shores soon, we will be ex­pect­ing some in­ter­est. In­vestors are shop­ping a lit­tle more and the mar­ket is in a cor­rec­tion from pre­vi­ous high an­nual growths ex­pe­ri­enced in past years.”

Nettman ex­plains though, they are not see­ing more peo­ple sell­ing their hol­i­day homes, but rather, “less move­ment”. Added to the tough mar­ket con­di­tions, many in­vestors look­ing to rent their prop­er­ties are be­ing pro­hib­ited by body cor­po­rate rules.

But hol­i­day in­vest­ment is still there, says Mar­lene Snow­don, also a Cen­tury 21 prin­ci­pal in the area. The higher end of the mar­ket, how­ever, is see­ing less ac­tiv­ity.

Homes that are sell­ing are those priced from R1.85 mil­lion to R4.5m in ar­eas like Sun­ning­dale, Park­lands North and the up-and-com­ing Sage­wood Es­tate in Sandown. Homes over R2.5m are tak­ing longer to sell and see­ing more ne­go­ti­a­tion on price.

The ef­fects of the econ­omy and po­lit­i­cal en­vi­ron­ment is also be­ing felt on the hol­i­day home mar­ket in Knysna, which Ju­lian Buck, prin­ci­pal of Jawitz Prop­er­ties, says is slower than in past years.

“Sales are down from re­cent years and the homes that are on the mar­ket are not be­ing snapped up. Only those that are priced com­pet­i­tively are sell­ing.”

Those who are still look­ing to buy in the area are gen­er­ally af­ter prop­er­ties close to the la­goon, or which of­fer good views. Homes be­ing pur­chased are also planned for dual use – as a hol­i­day home for now and as re­tire­ment home for later, Buck says.

Hol­i­day homes that are com­ing on to the mar­ket are “usu­ally quite large” and “no longer needed” as chil­dren have now grown up and have fam­i­lies of their own.

“Th­ese own­ers are now look­ing for smaller re­tire­ment homes.

“The pric­ing of th­ese larger homes is usu­ally more than the mar­ket is com­fort­able with due to the fact that they’re at the up­per end of the mar­ket, but are not in the con­di­tion that mer­its the mar­keted price,” he says.

FNB statis­tics show that sec­ondary home own­er­ship has de­clined, says the bank’s prop­erty econ­o­mist John Loos.

Sec­ondary home buy­ing ac­counted for 14.47% of to­tal home buy­ing in the first three months of 2017, but by the sec­ond quar­ter of 2018 (April to June), had de­clined to 9.91%.

PIC­TURE: RON PORTER

SHORE­LINE CHOICES Hol­i­day home­buy­ers in Knysna are look­ing for prop­er­ties close to the la­goon, or with good views|

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