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HOLIDAY TOWN PROPERTY MARKET FARING SURPRISINGLY WELL
Category Property News
In tough economic times, the holiday home property market is expected to decrease, but for South Africa’s Garden Route, this was surprisingly not the case in 2017. A report released by FNB in February, 2018, revealed that many towns whose market is heavily influenced by the demand for holiday homes, actually did well last year.
According to Steve Neufeld, estate agent with Sotheby’s International in Plettenberg Bay, “in spite of the weaker economy, there was still a healthy appetite for holidays homes, especially from Johannesburg buyers, and we didn’t notice any drop in these sales.”
In many of the coastal towns, property development has grown rapidly in recent years, increasing the supply of more affordably priced homes entering the market. With an increase in supply more affordable homes, there has been an increase in demand, despite South Africa’s weak economic climate.
Together with an increase in available and affordable properties, natural disasters have also shown to have an affect on the property market. The fires in Knysna last year burnt thousands of properties to the ground, and while so many properties were destroyed, many families who lost their homes chose to rather buy a new home instead of rebuild. Sheena Mare, area specialist in Knysna and Sedgefield for Sotheby’s International says: “What we assumed would be our worst year ever became our best year to date and we are thrilled to see that the fires didn’t deter buyers from other parts of the country from moving to Knysna.”
While 2017 wasn’t a great year for the town of Knysna as a whole, property sales rose to a value of R1.356 billion, and increase from $1.163 billion In 2016. Mare suggests that the Garden Route has become a popular destination for those wanting to retire or downsize due to its affordability. Capetonians in particular are making the decision to purchase property for sale in Knysna for example, because it is able to offer more than Cape Town could for the same price.
Author: Lew Geffen Sotheby's International Realty