Plett property market pays off for sellers
Category Plettenberg Bay Information
The last five years have been particularly successful for sellers in the Plettenberg Bay area. We have seen some of the highest sales volumes on record with a significant uptick in prices paid in many of the luxury areas around town during the 2021/2 boom period where transactions reached highs of 700-800 per year.
While the market has since slowed, largely due to the notable hike in interest rates as well as a slowing of the economy, the Plett market has remained active. Overall transaction volumes topped 500 last year as well-priced property continue to deliver successful sales for sellers.
From a sellers' perspective, the highest volume of sales, over 60%, fell into the R1.5M-R3M price band, and about 30% below that which means the market remains most active for sellers in the lower price bands.
Notably, however, almost 9% of transactions were above the R3 million price mark which is an increased compared to 6.5% in 2023, and about 4.5%-5% in the prior years. It reflects both the growing demand for luxury homes in Plett, and that buyers are prepared to pay slightly more for properties which is great news for sellers.
There was a notable increase in sales in the R5M-R10M range last year, and despite the economic concerns, there were still a few notable high value sales. This is also again indicative of the higher prices that buyers have been prepared to pay for their place in our Plettenberg Bay paradise.
The property proposition that Plettenberg Bay offers is quite compelling. If offers the allure of coastal living in a great, temperate climate with plenty of sunshine, and clean air, and a good choice of amenities. It has made Plett a great place to escape to over long-weekends and the holidays, a favoured destination to live, retire or holiday in. The inherent allure of pristine beaches, breathtaking natural beauty, and a relaxed, stress-free lifestyle, continues to attract a diverse range of buyers.
The higher demand seen over the last few years have also broadened the buyer pool with demand for property in Plett driven by a diverse pool of buyer demographics. These include a steady influx of families seeking a better quality of life, retirees looking for a tranquil haven, and investors recognising the long-term value of this prime location.
The growing remote work and digital economy is also boosting demand for properties in prime coastal locations such as ours. Second homes is another market for sellers. Generally, about 30% of buyers are local with about 40% coming from elsewhere in the country, predominantly Gauteng and Cape Town. International buyers comprise around 10% of sales activity.
Due to the notable uptick in sales, property prices increased notably since around 2020. This means that those who invested some years ago have benefited from good returns on their investment. We have also seen a number of record-breaking sales - including those sold by Seeff - which further underscores confidence in the Plett market, especially for high-net-worth buyers.
Key factors to bear in mind when selling in Plettenberg Bay
Price strategically for the market. With buyers and investors able to view a multitude of properties online, it is important that your property is correctly priced to attract attention.
Do not overcapitalise when you renovate. Many property buyers make improvements and often add customised extras. Ensure that these add value.
Present your property in a top condition. Ensure it is well maintained so that buyers will see it as an uncomplicated acquisition that they can move into with ease.
Be prepared to negotiate, especially if you are in a hurry to sell. Think about your bottom-line price in such instances, particularly if the property is in a higher price category.
Choose a credible local agent/agency with a track record of success. Most successful sellers will agree that it is the agent which makes all the difference.
A sole mandate delivers the best results. Experience has shown that correctly priced sole mandates offer the greatest chance of success for sellers.
Give the agent enough time to sell the property. In some instances, a property can sell quite quickly, while it may take considerably longer in other instances.
The Plettenberg Bay property market is not immune to the broader economic trends and challenges. Global geo-political and economic challenges including the "trade wars" are impacting the economy, and with that we have seen a slow-down in demand.
That said, with Plett's unique characteristics, coupled with Seeff's expertise and market knowledge, we continue to deliver exceptional results for sellers, and remain confident about the outlook for the property market.
While we advise sellers to price their properties realistically, and work with experienced agents, the underlying fundamentals suggest that Plettenberg Bay will continue to be a sound investment and a rewarding place to sell.
If you're considering selling your property in Plettenberg Bay, now is an opportune time to capitalise on demand for property in the area. Contact Seeff Plettenberg Bay today, or visit our offices on Main Road for a professional assessment and expert guidance on achieving the best possible outcome for your property aspirations.
Yours in Property
Seeff Plettenberg Bay
044 533 0311
Author: 1367
