Aside from Cape Town, many other coastal properties markets have continued to hold up well despite the rapid interest rate hikes last year.
According to the Seeff Properties, the demand for coastal property continues unabated and we have seen that in some instances, last year was still notably better compared to the pre-pandemic period.
One area which experienced yet another record year in 2022, is Hout Bay/Llandudno. According to Stephan Cross, manager for Seeff Hout Bay and Llandudno, it is hugely encouraging to note that while many areas experienced a slow-down in sales last year due to the rising interest rates, coastal hot spots held up well.
Hout Bay ended with 457 transactions worth over R1.3 bn, another record year. The average transaction price also increased to R4,389,960 (from to R3,518,090 in 2021), largely due to more sales at the higher price bands.
Llandudno ended with a record of 18 transactions worth over R478m compared to eight sales worth R143m in 2021. It also achieved a significant number of sales above R20m.
Cross says Hout Bay has become a great alternative for buyers looking to be close to the Atlantic Seaboard on the one side and the Southern Suburbs on the other side. It offers a great village-like lifestyle, fully contained with great restaurants, schools, shopping and more. There are a number of desirable lifestyle estates in the area which contribute to the high demand.
While it was expected that the Plettenberg Bay property market would ease towards the second half of 2022, it still ended the year with around 800 transactions and an overall value which is still somewhat staggering at around R2.3bn.
Alet Ollemans, licensee for Seeff Plettenberg Bay comments that while the number of transactions were slightly down compared to the record year of 2021, the overall value ended very much on par.
The average transaction price for Plettenberg Bay is now around R2.6m, about 4% higher compared with 2021 and about 30% up on the 2019-year. The higher transaction value is due largely to more higher value transactions, especially in the R3m to R10m range taking place as buyers were more confident about investing in Plettenberg Bay.
While the bulk of the transactions fall below R2.5m, there was excellent activity above this price band with a number of sales above R10m and three sales above R20m, all in Seaside Longships. The luxury estates also continue seeing strong demand.
While freehold properties make up about 70% of all property stock in the Plettenberg Bay area and estates only comprise around 20%, Lightstone data pointed to a strong swing to estate property sales, she said. It showed that for the 2022-year some 36% of transactions related to properties in estates and 39% to other freehold properties (i.e. those which are not in estates).
The “darling” of coastal buyers over the past few years once again enjoyed a solid year. According to Herman Spies, sales team leader for Seeff Mossel Bay, the market was moving faster and with less stock, sellers were calling the shots towards the end of last year.
Semigration, retirement and holiday home buyers continued to flock to the town for the excellent lifestyle and value on offer.
The average price for full title residential property was around R2.8m. Great areas to invest in included Dana Bay with an average transaction price according to Lightstone of around R1.7m, Diaz at around R1.8m, and Island View and Reebok, both with an average of around R1.8m respectively.
Gqeberha (Nelson Mandela Bay, Eastern Cape)
According to Alan Phillips, regional manager for Seeff Eastern Cape and Garden Route the metro is a fabulous alternative for coastal property buyers and still offers lower price points.
Residents have access to a great lifestyle and city amenities including good schools, tertiary education including the NMB University, great shopping centres and plenty of leisure facilities.
He said while the market was slightly slower in 2022 compared to 2021, which was the best in a decade, it was still very active and competitive. There is still a shortage of stock which presents great opportunities for sellers. It is not a particularly noteworthy market for semigration, but very active in terms of locals, especially first-time buyers, he says.
Great areas for buyers included Walmer with an average house price of R2.7m, Summerstrand with an average price of R2.55m and Lorraine with an average transaction price of around R1.4m.