Plett Property Market Review 2024-12-17
Average prices in Plettenberg Bay’s property market are continuing a run of successive dramatic increases. A lot of 2024 sales will only register next year, but preliminary figures show average prices increased by 25%. This is on the back of a 25% increase in 2023. 2022 had a 9% and 2021 had a 24% increase. The sales figures are somewhat skewed upward by a very high value sale (mentioned below) which, if removed, would reduce the increase in average prices to a 15% increase which still demonstrates good growth. It should be noted that sales volumes were down 38% and total value decreased by 22% in 2023. Essentially prices increased as stock decreased, but the market slowed considerably in the second half of the year. 2024 appears to be faring better.
Plettenberg Bay normally follows behind the Gauteng property market by about 6 months, but in this property cycle Plett bucked the trend due to the big post-Covid-lockdown semigration and continued to climb during Gauteng’s downturn. With the busy summer season upon us, it will be interesting to see how things progress.
The average value for a property in Plett increased by 24% from 2020 to 2021 to R3million, a further 9% in 2022 to R3,3million, 25% to R4,1million in 2023, and, so far in 2024, a further 25% to R5,2m.
2021 saw a massive increase of 92% in total value of property sold to R2,13billion, while 2022 was just below R2billion, 2023 was at R1,5billion, and 2024 is at R1,7billion (so far). This is Plett’s third best year for total value.
The number of sales increased by 55% in 2021 to 705, then declined by 17% to 588 in 2022 and then a further 38% to 361 in 2023. It is too early to tell what the figure will be for 2024, but it currently sits at 332.
For full title property in 2021 there was a 31% increase in average value (R3,59million) in comparison to a 4,3% increase in sectional title averages (R1,82million). In 2022, sectional title averages increased by 27% to R2,32million and full title by 9% to R3,92million. In 2023, sectional title averages increased by 13% to R2,68million and full title by 24% to R4,86million. So far in 2024, sectional title averages have increased by 19% to R3,12million and full title by 30% to R6,33million. Both are performing well with full title property, once again, taking the lead.
Of particular interest is the number of full title sales below R1million decreased from 100 in 2022 to 37 (so far) in 2024. This is due to the decline in the stock of vacant land. Many plots were sold over the past few years and building activity is probably the highest it’s ever been. Building costs have also increased dramatically.
Buyer demographics remained stable. Most buyers normally come from Gauteng and Plett itself (±30% each), followed by Cape Town (±12%) and then international buyers (±8%). This year has seen locals outbuying Gauteng purchasers (±33% vs ±29%) and international buyers increased to ±15%.
Most established estate agencies had record sales in 2021, a decent 2022 and good sales years in 2023 and 2024.
The historical record price for residential property was achieved by Hein Pretorius of Sotheby’s International Realty Plettenberg Bay this year of R156million for a very large estate on Robberg Beachfront. Previous records: R50million in 2006 for a coastal estate, R55million for beachfront home on Beachy Head Drive in 2021 (the same house sold for R50million earlier in the year), and R78million in 2024 also for a large Beachy Head Drive home on a double plot. Another notable recent sale is an Old Plett home (Look Out Beach) for R45,000,000. In 2020 the highest price was R44million for a beachfront home in a gated estate on Robberg Beach. In 2021 there were 32 sales above R10million, in 2022 it was 30, in 2023 it was 26, and in 2024 it is 17 so far.
Entry level asking prices in Plett have increased considerably over the past 4 years. It is difficult to find full title homes below R3,500,000. Sectional title unit prices start at R1,800,000. Vacant land starts at about R650,000 in gated estates and R1,000,000 in open areas.
Top current publicised asking prices for residential properties on the market are as follows: R58million for a house in The Tides, R55million for a house on Look Out Beach, R78million for a large piece of land on Keurbooms Beach, and R16,92million for a penthouse apartment in town. Top prices obviously fluctuate considerably depending on what is on the market at the time.
Historical property price increases up to 2023 over the previous: 5 years: ±11.2%, 10 years: ±6.2%, 15 years: ±4.2%, 20 years: ±5.6%, and 25 years: ±11.5%. This demonstrates that timing of purchase has a significant impact on return on investment.
Hein Pretorius, owner broker of Sotheby’s International Realty Plettenberg Bay, says: “2021 was by far our best year. 2024 is our second-best year to date. It has been a great year for us. Stock is low and competition is tough, so I am very grateful to our clients for helping us achieve this success. I was lucky enough to achieve a record sale this year, which goes to show just how robust the top end of the market is in Plettenberg Bay. Due to low stock levels and high demand for properties the prices have continued to increase substantially. There are a few new developments in the pipeline though I am not sure it will be enough to meet the demand. For buyers, Plett remains popular and there is still limited stock, so if you see something you like act quickly or risk losing out.”
In the towns surrounding Plett there are normally very few sales, so statistics need to be seen in context and treated with some circumspection. Note that for these three towns, sales are taken by registration date, not sales date.
In Wittedrift eight properties registered for an average of R673,000 in 2020; in 2021, ten properties registered for an average of R1,146,000; in 2022, seven properties registered at an average of R1,283,000, in 2023 to date five properties registered at an average of R1,656,000, and in 2024 six properties for an average of R1,533,333.
In Keurbooms proper (main town) 12 properties registered for an average of R5,8million in 2021(with two higher value properties of R14million and R15million pushing up the average); in 2022, 11 properties registered for an average of R3,75million, in 2023 10 registered for an average of R6,5million, and in 2024 so far, four registered for an average of R15million (this includes 2 large beachfront homes which pushed the average up dramatically).
Natures Valley saw averages of R4,6million in 2021 with six registered properties; in 2022, 8 properties registered for an average of R5,23million, in 2023 10 properties registered for an average of R4,9million, and in 2024 six properties have registered so far for an average of R5,4million. The highest price in 2023 was R12,5million for a house in Lagoon Drive.
The figures above were taken from deeds information on the 17th of December 2024. 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 R200 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 years, and last year in particular (2024), 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) steven@sapv.co.za
If you have questions send an email to: steven@sapv.co.za
