House prices in Western Cape – and Plett – hold their own
Friday, August 30, 2024
Half-year figures released by the Deeds Office indicate that Plettenberg Bay’s property market appears to be holding its head above water, after the national election and found some stability after the formation of the GNU (Government of National Unity).
* Note that in 2020 there was only 8 months of trading due to Covid lockdown.
The higher end of the Plettenberg Bay property market performed the best during this period, with properties sold reflecting an increase of 68% in the R5m- R7m price bracket, and 120% in the R7m – R10m bracket, compared with the same period last year.
Helen Melon Properties, Plett’s niche property specialists, compiles figures of sales based on Deeds Office listings on a quarterly, half-yearly and annual basis, as well. Figures for the first half show that in the R1m to R3m bracket sales were down on average 23%. In R4m – R5m bracket, down 26%. The reason for the lower performance in these brackets can be ascribed to stock issues, says Helen Ward, principal of Helen Melon Properties. “There are fewer houses and stands available to sell in these brackets.” The reason there are fewer houses available in these categories could also be that potential sellers are ‘looking for their right price’, which does not necessarily reflect the going market price,” says Ward.
These trends are supported by the latest Statistics South Africa house price index showing that properties in Western Cape registered the largest price increases in March 2024, compared with March 2023, rising on average by 7,7%. The index is produced in partnership with the South African Reserve Bank (SARB) with support from the International Monetary Fund.
Johan Loos, property economist, interviewed on eNCA, said the upward trending showed the Western Cape outperformed the rest of South Africa. He said there was an over-exaggeration on the perception that foreign buyers were pushing up house prices in Cape Town, and the Western Cape. A more important trend was “semigration”, or people moving from the rest of South Africa to the Western Cape. “This is a more significant group driving economy and price (in the property market),” he said.
Looking at figures from the Second Quarter figures from the Deeds Office for Plett indicates there is life in the market, with an overall “blip” upwards. Having gone through a period where stocks of houses for sale have been few and far between – the main brake on activity in some price ranges - there are still people willing to sell.
Ward said positive elements reflecting on the market are fewer load shedding challenges and the prospect of lower interest rates, which have been signalled by the Reserve Bank for September. The fact that the recent elections went smoothly is also expected to return a measure of stability into the property market, that is shrugging off pre-election jitters.
Plett is now readying itself for the December seasonal busy period and, interestingly, Ward says, spring also appears to give a fresh impetus to the entire market.
She said Helen Melon Properties will be looking to the R2m- R5m market for opportunities and “honest appraisals for potential sellers. Sellers should become more realistic in their expectations,” says Ward, stressing that Helen Melon Properties is the niche agency that provides years of experience to the market that brings with it “peace of mind to sellers and buyers alike”.
“Our approach at Helen Melon is to run our business professionally. With all our processes in place, we provide the necessary security for our potential buyers and sellers to ensure their interests are paramount. We perform on every aspect of the sales/buying process to ensure satisfied clients.
Plett’s First Half top performing Suburbs
Upper Central up by 70 % (39 sales in 24 compared to 23 sales in 2023),
Keurbooms down by 11% (33 sale in 2024 compared to 37 sales in 2023),
Bowtie up by 37% (26 sales in 2024 compared to 19 sales in 2023),
Seaside Longships down by 46% (20 sale in 2024 compared to 37 sales in 2023),
Whale Rock down by 23% (17 sales in 2024 compared to 22 sales in 2023)