Plett property update - fantastic summer and an upbeat outlook for 2022
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We enter 2022 on a positive note and convey our absolute best wishes for a prosperous and healthy year to you and your loved ones!
It has been a bumper tourist season for Plettenberg Bay with people flocking to the town to enjoy the fabulous hospitality, beaches and tourist attractions. Many of these visitors would also have taken the time to look around to see if they would like to invest in a home here.
There certainly has been a great deal many more people investing in Plettenberg Bay Property over the last year. Market activity for the 2021-year did not just bounce-back, but ended the year on the highest levels since the boom-period of 2017.
From a Seeff perspective, it was one of our busiest and best years as we lifted the top-end price ceiling in Plettenberg Bay twice over the last year - first to R55 million and then to R60 million.
Plettenberg Bay now ranks as one of the top coastal property hotspots, often an alternative to the busy Atlantic Seaboard. It offers the same beautiful coastal location with a favourable climate, warm ocean and more sunshine than most other places.
While the pandemic continues to overshadow much of our daily lives and the economy, we have seen over the last year that the property market has not just shown a level of resilience, but has delivered outstanding value to sellers.
Deeds office data shows that some 728 transactions were recorded for the 2021-year to the total value of close to R2 billion (R1,913,892) at an average transaction value of R2,629, one of the highest for a coastal town.
This represents the highest volume and value of transactions since 2017. The market has not just bounced back to pre-pandemic levels, but has seen the momentum lift dramatically.
Lightstone statistics show that there was an uptick across all property types which include sectional title, freehold property as well as the sale of vacant land over the last year. It was a particularly good year for super luxury/trophy home sales.
The price bands have also seen a notable uptick with some 56% of all sales concluded above R1.5 million compared to 44% concluded below that price benchmark. Almost a quarter (24%) of all sales concluded were above R3 million due to higher demand for luxury homes.
The statistics further show that there were a total of 25 sales above R10 million with at least eight of these priced above R20 million ranging to R55 million and R60 million, being the two top-end sales concluded by Seeff. This is second only to Cape Town's Atlantic Seaboard and underscores the premium that buyers and investors now place on property in Plett.
The statistics also reflect an interesting demographic shift to more younger buyers. Where the current property ownership in the 18-35yr age group is just 2%, buyers in this age group increased to 8% of all sales last year. The 35-49yr age group which represents 22% of current ownership increased to 35% of buyers over the last year.
The market has seen a welcome return of not just local buyers looking to invest in quality real estate in our town, but also of semigration buyers from Johannesburg and other areas. Investment by foreign buyers has also seen an uptick as they too look for prime locations to live and work from.
While we must remain mindful of the potential impact that the ongoing pandemic and weak economic growth outlook may have on the market as we progress this year, last year's performance again showed that Plettenberg Bay is an excellent investment.
Seeff's outlook for the year remains positive despite the interest rate hiking cycle now in effect. Even with that, the rate remains well below the pre-pandemic level and will continue to serve as an inducement for buyers and investors.
The market remains packed for sellers, buyers, investors and rentals and the outlook remains positive. If you would like more information and insight on selling or buying in the area, please feel free to contact us at any time.
Author: Gina Meintjes
