Plett Property Market Review 2018-05-22
Property in Plettenberg Bay is chalking up record performances. Sotheby’s International Realty Plettenberg Bay has recorded an increase of 60% for the first quarter of 2018. 2017 was also a record year for the property market as a whole in the upmarket coastal resort town. Total sales value was the highest ever documented, breaking the R1billion mark for the second time in history, and total average prices were also the highest recorded to date at R2,3million, though the number of sales were down by 14% from 2016.
Hein Pretorius, Broker Principal of Sotheby’s International Realty Plettenberg Bay says: “2017 faired better than what we initially predicted, and 2018 is greatly exceeding expectations so far. If it continues like this, it will be another record year. There is an optimistic mood in the market, which is being driven partly by the continuing semigration trend and partly due to the fact that Plett is still substantially cheaper than Cape Town. The building industry is doing well; there are many renovations and a lot of new homes being built. Demand continues to increase for gated estates and also for vacant land in general.”
Entry level prices have increased substantially. The entry level for apartments is R800,000. Vacant land starts at about R275,000. 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.
The highest price achieved in residential sales in 2017 was shared by two Robberg beachfront properties that sold for R36million each. One was on Beachy Head Drive and one was in Robberg Beach End estate 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. For apartments, De Meermin took the highest prices in both 2017 (R6,8million) and in 2016 (R10,5million). The historical record price for residential property remains unchanged and has been held since 2006 by Hein Pretorius at R50million for a luxury coastal estate.
The towns surrounding Plett did not fare as well but remained fairly flat in 2017. In Wittedrift five properties transferred in 2017 for an average of R658,000, including three houses at R800,000; 7 have transferred in 2018 so far at an average of R689,000. In Keurbooms proper (main town) 11 properties transferred in 2017 for an average of R5,55million, four of which were vacant. Natures Valley saw averages of R4,4million in 2017 with 11 registered properties).
According to the 2018 AfrAsia South Africa Wealth Report, produced by New World Wealth, Plettenberg Bay is the third top location in the country for R20million+ homes, after Gauteng and Cape Town. Outside of Cape Town, Beachy Head Drive is the most expensive road with land costing ?R43,000/m?. The report went on to predict that Keurbooms and Natures Valley will be the next hotspots for homes over R20million. Interestingly, it also mentions that South Africa is second only to USA for the highest number of residential estates in the country. In Plett demand has increased over the past years for property in gated estates.
Pretorius says: “I am very encouraged by the numbers for 2017 and 2018. Demand and supply are well balanced now, so all things being equal, the market is in a very healthy state and showing double digit growth. There are not many places on the planet like Plett and when comparing prices to similar destinations in SA and the world, there is still a major value proposition for buyers. There are some exciting developments like Plett Quarter, currently being marketed on behalf of Edge Properties, that offer a great investment opportunity. With 50% of the 39 units sold already this mixed-use lifestyle building on the seaside of Plett Main Street, with shops and restaurants onto the main street, reception area for guest arrivals and communal pool on the top floor for residents, is set to be the next hot property in Plett. Apartments range from R 2.2 million to R 8,9 million.”
“The Quartet retirement estate offers retirees fabulous lifestyle options for the later years in life. Beautiful 2-bedroom free standing units or various sized hotel suits are available that are fully service in stunning gardens with a full hotel offering in terms of dining, entertainment, and housekeeping. High care is available on site making this one of the best places in the region as a final stop. I take my hat off to Russell Stevens, founder of the Three Cities hotel group, together with his hotelier partners for developing this fantastic product. I wish I was 60!”
The figures above were taken from deeds information on the 22nd of May 2018. 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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