Knysna Regional District Property Market Overview 26 October 2011:
Prices in the rural property market in Knysna Regional District (the area around Plettenberg Bay and Knysna) remain under pressure in 2011. While prices continued to climb, the number of sales registered per year dropped significantly after 2005. Then the crash came in 2008, and the total value of sales registered per annum dropped dramatically by 50% in 2009. Things have not improved substantially since then. Farm agents working in the area say that as asking prices are declining, some movement is coming back into the market, but only at what would have been considered bargain prices a couple of years ago.
A significant registration in 2010 was R22million for a large farm in the Uplands area near Plett which was sold in 2005. It consisted of a few portions and had large associated water rights.
The average price for rural property is currently around R3million, but it must be remembered that the market is not homogenous. There are extremes of value between upmarket estates and vacant land next to low-cost housing areas. The entry level for a reasonable 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 area so far was R50million for a coastal estate near The Crags in 2006, and second highest was for R47.6million for a cliff-top castle on the Western side of Robberg Nature Reserve. Both were sold by Hein Pretorius, the principal of Sotheby’s International Realty PlettenbergBay.
The figures above were taken from deeds information on the 26th of October 2011. Sales are listed by registration date, not date of sale. Rural property and sales below R200 000 are not 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 the full price, only the single figure is taken). 2011 is not over, so the figures for 2011 will change.
If you would like to receive a copy of the graphs mentioned in this report, please e-mail: steven@sapv.co.za (include the area that you are interested in).
