Plett Property Market Review 2017-12-14
Plettenberg Bay broke the R1billion mark for the first time in history in 2016, and though the market faired relatively well in 2017, it looks like 2017 will fall a little short of this level if current trends remain.
The total average prices decreased in 2016 from R2,1million in 2015 to R1,99million. This was partly due to a substantial increase in the sales of vacant land which are naturally cheaper on average than improved properties. 2017 saw this average increase again to R2,2million so far, though to put this in perspective there has been very little increase in averages over the past 10 years.
As the prices have increased again this year, the number of sales has declined somewhat, after the dramatic increase from 417 units in 2015 to 528 in 2016. 2017 looks like it will have a similar number of sales as 2015.
So, even thought it’s a relatively good year and the “semigration” trend of South Africans moving to the Western Cape continues, there is a cooling off from the high of 2016.
The entry level for apartments is R670,000. Vacant land starts at about R200,000. The entry level for houses is around R1,8million, though there are cheaper options in areas surrounding Plett. It is becoming increasingly difficult to find houses below R2million.
Hein Pretorius, Broker Principal of Sotheby’s International Realty Plettenberg Bay says: “2015 and 2016 were record years for us. 2017 has been a bit harder than before as stock levels are declining, but it is our second best year to date. Though we still have stock of vacant land it is of interest to note that demand has increased in spite of high building costs. I think this is partly due to declining prices in this sector reaching affordability levels. Demand is also higher in gated estates due to the increased security and facilities. The recent tragic fires have had a considerable impact on individuals, but have not appeared to have had as dramatic effect on the property market as a whole in Plettenberg Bay as we initially thought it would, though the effects will still be felt in the coming years.”
The highest price achieved in residential sales in 2016 was for a large upmarket beachfront home in Whale Rock Beach for R32million. In 2017 the highest price so far is R36million for another beachfront mansion in Robberg Beach End right at the end of Robberg Beach next to Robberg Nature Reserve. Over the past few years there have been a number of sales on Beachy Head Drive close to and over R30million where houses were demolished to make way for new homes, so a new level for beachfront property seems to be established, and entrenches Plett as one of the highest value property markets in Africa. According to the New World Wealth South Africa 2016 Report, the coastal holiday town’s mansions on unspoilt beaches are the most expensive houses in South Africa outside of Cape Town. Plett comes third after Cape Town and Johannesburg for number of homes above R20million. For apartments, De Meermin took the highest prices in both 2016 (R10,5million) and 2017 to date (R6,8million). The record price for residential property has been held since 2006 by Hein Pretorius at R50million for a luxury coastal estate. However, there are exceptional properties currently available at higher prices; will 2018 see a new record?
Pretorius says: “One of those properties, the Castle on the Cliff, is currently on the market for R75million. The majestic rural villa on its cliff-top perch on a 66-hectare estate near the pristine Robberg Nature Reserve, commands sweeping views of the ocean and is a stone’s throw from some of South Africa’s most scenic hiking trails. It comes complete with a large sea-filtered rock pool, a private lake, and a prehistoric cave. This expansive natural wonderland was home to indigenous tribes thousands of years ago and various artefacts have been found on site. These belong to the estate and are included in the sale.”
“We also have a few new developments that we are very excited about. Plett Quarter is a new sea-view penthouse apartment development at the Dolphin Circle on Main Street (the property where The Table Restaurant and Market on Main are located). It is a stunning building which will have excellent finishes and is located in one of the most prominent location in Plett. There will be commercial space available on ground levels on Main Street and one unit on Strand Street. The luxury 2 & 3 bedroom apartments are priced from R2,2million to R8,5million including VAT (no transfer duty).”
“Another example is The Quartet Hotel and Garden Suites, which has life right ownership in an upmarket retirement complex. It offers exceptional service and care, together with excellent quality houses and apartments in landscaped gardens. Studio apartments are R1million, 1-bedroom apartments are R2million and 2-bedroom, 2-bathroom free-standing houses are R2,75million.”
“Thulana Hill is also launching phase 2 with great new architectural design, starting with north-facing sea view apartments and garages. Though still being finalized, prices for these spacious 3 bedroom apartments will be from around R2,3million including VAT.”
“For more information on these or any other property, contact us at 044 533 2529.”
All the towns surrounding Plett appear to be following similar trends to Plett. In Keurbooms proper (main town) 10 properties transferred in 2017 to date for an average of R5,55million, four of which were vacant. In Wittedrift five properties transferred in 2017 for an average of R658,000, including three houses at R800,000. Natures Valley saw averages of R2,9million (11 properties) in 2015, R4,5million (7 properties) in 2016, and over R4,43million so far in 2017 (10 properties). Like-for-like, Natures Valley is one of the best performing suburbs in South Africa.
The figures above were taken from deeds information on the 14th of December 2017. Sales are listed by date of sale, not transfer date, to provide a more accurate depiction. Rural property, sales below R100 000, known non-arm’s length transactions and duplications (e.g. when a developer buys numerous properties for a single price and each is listed at the full price, only the single figure is taken) are not included in the figures. A number of sales are still in the registration process, so the picture will change in future, especially for the last year.
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