Knysna Regional District Property Market Overview 26 October 2011:
Prices in the rural property market inÂ Knysna Regional District (the area around Plettenberg BayÂ and Knysna) remain under pressure in 2011. While prices continued to climb, theÂ number of sales registered per year dropped significantly after 2005.Â Then the crash came in 2008, and the totalÂ value of sales registered per annum dropped dramatically by 50% in 2009. ThingsÂ have not improved substantially since then. Farm agents working in the area sayÂ that as asking prices are declining, some movement is coming back into theÂ market, but only at what would have been considered bargain prices a couple ofÂ years ago.
AÂ significant registration in 2010 was R22million for a large farm in the UplandsÂ area near Plett which was sold in 2005. It consisted of a few portions and hadÂ large associated water rights.
The average price for ruralÂ property is currently around R3million, but it must be remembered that theÂ market is not homogenous. There are extremes of value between upmarket estatesÂ and vacant land next to low-cost housing areas. The entry level for a reasonableÂ vacant smallholding is R1million. The highest asking price in the area is
R125million for an upmarket game reserve near Plett.
The highest price achieved in the rural areaÂ so far was R50million for a coastal estate near The Crags in 2006, and secondÂ highest was for R47.6million for a cliff-top castle on the Western side ofÂ Robberg Nature Reserve. Both were sold by HeinÂ Pretorius, the principal of Sothebyâ€™s International RealtyÂ PlettenbergBay.
The figures above were taken fromÂ deeds information on the 26th of October 2011. Sales are listed by registrationÂ date, not date of sale. Rural property and sales below R200 000 are notÂ included in the graphs, and duplications have been removed (e.g. when a
developer buys numerous properties for a single price and each is listed at theÂ full price, only the single figure is taken). 2011 is not over, so the figuresÂ for 2011 will change.
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