Nature’s Valley Property Statistics – 24.05.2018

Natures Valley Property Market Review 2018-05-24

Natures Valley saw averages of R2,9million (11 properties) in 2015, R4,5million (7 properties) in 2016, R4,4million (11 properties) in 2017 and R4,1million so far in 2018 (4 properties), which is a big jump upwards. Like-for-like, Natures Valley is one of the best performing suburbs in South Africa.

Increased “semigration” to the Western Cape continues, though there has been a slowing in other areas, so the future is somewhat uncertain.

There are currently at least 9 properties for sale in Natures Valley, with asking prices ranging from R3,95million to R8,9million.

The highest price to date in Natures Valley was recorded in 2017; a home in Nemesia Street sold for R8,1million.

The growth rate in Natures Valley over the past 20 years has been well above the national average. The high prices and good investment characteristics are attributable to the scarcity of property (Natures Valley cannot expand) and the high demand (due to lifestyle and natural beauty).

There are not enough sales in Natures Valley to make the historical analysis statistically significant, but an indication of rough trends can be gauged. The figures above were taken from Lightstone on the 24th of May 2018. Sales below R100 000, duplications and sales that are deemed not to be “arm’s length” market-related transactions are not included in the graphs. Note that a number of transfers between family members previously included have now been excluded. Figures were drawn by transfer date, not date of sale.

If you would like to receive a copy of the graphs mentioned in this report, please click on the link in the heading of this post or e-mail: steven@sapv.co.za (include the area that you are interested in).

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5 Responses to Nature’s Valley Property Statistics – 24.05.2018

  1. Marylou says:

    Interesting info, thanks. We own a share in a property at Noetzie Conservancy near Knysna. The Municipality have increased our rates valuations by over 1000%. We are challenging that, but have heard no news yet. Rustic Family cottages, that have been in the same family for generations, are without electricity or any services have been valued at over R9 million. Isnt that crazy? It seems like there is a hidden agenda to force the old people out to make way for billionaires. It makes us feel worried and very sad. I hope this does not happen to Nature’s valley, which is a very beautiful and special place too.

    • steven says:

      Hi Marylou, I agree that the rates increases are disturbing. This is something that needs to be taken up with the municipality. The municipal budget, including the rates policy, are part of a public participation process. As far as the municipal valuations of property go, all properties in every municipality need to be valued every four years. The value must be the current market value at the date of valuation, which must be based on comparable sales. If there aren’t any in the direct area, the valuer will look to a similar area elsewhere. As property owners, we need to be realistic about this. If you were a seller and the municipal value is a price that you wouldn’t sell for because its too low, then there is no point in objecting. However, if it is a price that is too high and you would definitely sell for it, then it is worth objecting. Mistakes can easily be made, and the Municipal Rates Act makes provision for this. If your property is genuinely overvalued, fill in the objection, include all the information and comparable sales, and the municipal valuer will change your value. Be careful of objecting just for the sake of objecting though. If your property is actually undervalued, you could end up with a higher value. The municipal valuer for Knysna if very approachable and wants the valuation to be fair. She will happily reduce your value if there is reason to do so. I think we all need to be more proactive when it comes to rates policy though. After all, we are the ones paying for it. Without knowing your property, I cannot comment on the R9million value. I know there were a few properties that were seriously undervalued in the previous rates roll, so there are going to be cases of huge increases in value. At the end of the day it has to be market related based on comparable sales. If you managed to find an open market comparable sale close to the effective date of the municipal valuation to base your objection on, you may be looking forward to a reduction. I hope it all works out for you.

      • Marylou says:

        Thanks for your answer. The good news is that the objection process did work and we heard today that the property has been valued for just over R2mill.( instead of the crazy R9mill+. Much more reasonable. Shew!

        • steven says:

          Glad to hear it worked out for you. Mistakes will happen in the municipal valuation process. It is unfortunate that they create stress, but it is great to see that they are corrected. The system was designed to be fair, so it is good to see that it is working well in Knysna.

        • Mike Hampton says:

          Wow, Marylou. That’s big news that kicks the year in a better direction. I thought that you would have sent us all a press release:)

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