Plettenberg Bay Property Statistics – 16.09.2021

Plett Property Market Review 2021-09-16

Plettenberg Bay’s property market is still booming with high demand for houses and semigration driving the increases. Record sales have been recorded since the lifting of the Covid-19 lockdown on 1 June 2020. After a slow start due to the recession 2020 turned out to be a good year for property in Plett, but 2021 is set to be the best year to date by far.

Though many sales will still occur and many that have sold still need to register which will change the statistics, and 2019 was at a low base, it is already clear that there have been dramatic increases in value. For the property market as a whole, the average value increased by 9% from 2019 to 2020 and then a dramatic 38% in 2021 to R3,4million. From 2019 to 2020 the number of sales increased by 20% to 418, and the total value increased by 30% to R1,058billion.

For full title property, there was only a 2.3% increase in average value from 2019 to 2020, but then a huge increase of 43% to R3,9million from 2020 to 2021. From 2019 to 2020 the number of sales increased by 33% to 315, and the total value increased by 37% to R857million (2021 is already at R905million and climbing).

Sectional title properties may not be performing as well as full title but are still doing quite well, with an increase in average value of 17% from 2019 to 2020 and 8% in 2021. Interestingly, the number of sales declined by 7% from 2019 to 2020 as the total value increased by 9% to a little over R200million.

The increases are attributed in part to high semigration levels of buyers moving from Gauteng (and other areas), the “newfound” ability to work remotely, and the increase in activity in the top end of the market. There is also a high proportion of local buyers. Buyers are still predominantly from Gauteng and Plett (±30% each; though Gauteng is a little higher in 2021), followed by Cape Town (±12%). International buyers make up about 8% of the market.

The current boom came as quite a surprise as economists were predicting a considerable decline post-lockdown; -8% was predicted due to the combination of the recession, national structural problems, and the effect of lockdown. They did, however, warn that the property market is slow to react. The expected oversupply of property did not happen, and estate agents are complaining of stock shortages. There has been an ±30% decline in properties for sale from June 2020 to September 2021. This puts upward pressure on prices.

Most estate agencies are reporting record sales. For example, Sotheby’s International Realty Plettenberg Bay has been involved in over R672million worth of sales since the beginning of 2021. To give this some perspective, the slowest year in Plett in the past decade was 2011 where the total sales in the whole town were at R453million. From 2016 to 2018 Plett’s totals were just over R1billion each, then dropped to R812million in 2019, 2020 broke the R1billion mark and 2021 has already done so in September. Agents are saying that they are also busy now in what are traditionally quiet winter months.

The historical record price for residential property, which was previously in place since 2006 (R50million), was beaten by a R55million beachfront home on Beachy Head Drive in 2021. Another notable recent sale is an Old Plett home above Look Out Beach for R38,350,000. In 2020 the highest price was R44million for a beachfront home in a gated estate on Robberg Beach. In 2021 there are already nineteen sales above R10million.

Entry level asking prices within Plett remained relatively stable for several years but increased in 2020 and 2021. Full title homes start at about R1,850,000, but it is hard to find anything below R2,2million. Sectional title unit prices start at R950,000 (previously R750,000). Vacant land starts at about R295,000 in gated estates and R525,000 in open areas (up from R425,000). There are cheaper options in areas surrounding Plett.

Top current publicised asking prices for properties on the market are as follows: R75million for a coastal estate, R28million for vacant beachfront land in an eco-estate, and R9,5million for apartments. Top prices obviously fluctuate considerably depending on what is on the market at the time.

Hein Pretorius, owner broker of Sotheby’s International Realty Plettenberg Bay, says: “2020 was an excellent year for us, but 2021 has been phenomenal. We surpassed 2020 sales in the first quarter! Across the board the market is doing exceptionally well. The top end of the market has been active and there is high building activity. The more popular gated estates have little or no vacant land left for sale. Stock shortages are becoming a problem, but there is still quite a lot on offer. Part of the reason sectional title has not increased as much as full title is due to availability; about a quarter of our stock are apartments versus over 60% full title, and Plett also generally has very few high-end flats built which brings averages down.”

“We are launching a new luxury development off-plan called The Plett Quarter which is doing well; ten of the twenty-two sea-view apartments are taken already, and it has only just become available. It is in an excellent location on Main Street at the Dolphin Circle. There is a commercial and hotel component on the lower levels, a spa, and a pool and ‘sky bar’ on the upper levels. Owners will be able to take advantage of these facilities. It will be a landmark property for Plett and will uplift Main Street.”

“It is a good time to sell if you are thinking of selling as there are buyers around and you can achieve a decent price for your property. If you are thinking of buying, the sooner the better, as interest rates are low, asking prices are rising, and in the long-term Plett will retain its popularity. There are still a few good value properties available, but stock is declining.”

In the towns surrounding Plett there are normally very few sales, so statistics need to be seen in context and treated with some circumspection.

In Wittedrift 13 properties transferred in 2018 for an average of R772,000 (a record number of sales, but averages were down from 2015 & 2016); in 2019 seven properties registered for an average of R863,000; in 2020 8 properties registered for an average of R673,000; and in 2021, so far, four properties registered at an average of R963,000.

In Keurbooms proper (main town) four properties transferred in 2018 for an average of R7,86million, the highest being R9,75million for an older beachfront home; in 2019 ten properties transferred for an average of R4,4million; in 2020 five registered for an average of R6million; in 2021, so far, 7 properties registered for an average of R6,9million with two higher value properties (R14million and R15million) pushing up the average.

Natures Valley saw averages of R3,8million in 2018 with twelve registered properties, 2019 saw four properties register for an average of R3,6million, in 2020 4 properties for an average of R3,8million; and in 2021, so far, 3 properties registered for an average of R3,25million with a plot on Forest Drive for R1million bringing down the average somewhat (two houses sold for R4,2million and R4,5million).

The figures above were taken from deeds information on the 16th of September 2021. Sales for Plett are listed by date of sale, not transfer date, to provide a more accurate depiction of the market. Rural property, sales below R100 000, known non-market-related transactions and duplications (e.g., when a developer buys multiple properties for a single price and each is listed at the full price by the deeds office, only the single figure is taken), and outlying areas are not included in the figures. Many sales are still in the registration process, so the statistics and graphs for the later, and last year in particular (2021), will change substantially in future. Other statistics are taken from Sotheby’s International Realty Plettenberg Bay’s figures.

This report was compiled by Steven Neufeld, Manager Principal of Lew Geffen Sotheby’s International Realty Plettenberg Bay and Professional Valuer and Court Appointed Appraiser for South African Property Valuations®: 072 417 7731 (or) steve.sir@plettenbergbay.com

If you have questions send an email to: steven@sapv.co.za

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