Aside from Cape Town, many other coastal property markets have held up well despite last year’s rapid interest rate hikes.
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According to the Seeff Property Group, demand for coastal property remains strong, and in some cases, last year was still significantly better than the pre-pandemic period.
Hout Bay and Llandudno
Two areas that experienced yet another record year in 2022 are Hout Bay and Llandudno. According to Stephan Cross, manager for Seeff Hout Bay and Llandudno, it is hugely encouraging to note that while many areas experienced a slowdown in sales last year due to rising interest rates, coastal hot spots held up well.
Hout Bay ended the year with 457 transactions worth over R1.3 billion, another record year. The average price of a transaction also went up, from R3,518,090 in 2021 to R4,389,960 in 2022. This was mostly due to more sales in the higher price bands.
Llandudno ended the year with 18 transactions totalling R478 million, compared to 8 sales totalling R143 million in 2021. It also had a significant number of sales that exceeded R20 million.
According to Cross, Hout Bay has become an excellent choice for buyers seeking to be close to the Atlantic Seaboard on one side and the Southern Suburbs on the other. It provides a wonderful village-like lifestyle, complete with excellent restaurants, schools, shopping and other amenities.
The area is home to a number of desirable lifestyle estates, which contributes to the high demand.
Plettenberg Bay
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 that is still somewhat staggering at around R2.3 billion.
Alet Ollemans, licensee for Seeff Plettenberg Bay, comments that while the number of transactions was 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 R2.6 million, about 4% higher compared to 2021 and about 30% higher in 2019. The higher transaction value is mostly due to higher-value transactions, especially between R3 million and R10 million, happening as buyers become more confident about investing in Plettenberg Bay.
While the bulk of the transactions fell below R2.5 million, there was excellent activity above this price band, with a number of sales above R10 million and three sales above R20 million, all in Seaside Longships. The luxury estates also continue to see 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 points to a strong swing in estate property sales, she says. It shows that for the 2022 year, 36% of transactions related to properties in estates and 39% to other freehold properties (i.e., those that were not in estates).
Mossel Bay
The “darling” of coastal buyers over the last 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 continue to flock to the town for the excellent lifestyle and value on offer.
The average price for full-title residential property is around R2.8 million. Great areas to invest in include Dana Bay, with an average transaction price according to Lightstone of around R1.7 million; Diaz, at around R1.8 million; and Island View and Reebok, both with an average of around R1.8 million.
There is high demand for properties below R3 million. Vacant land is plentiful, and prices have doubled over the past 12 months.
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 says while the market was slightly slower in 2022 compared to 2021 (which was the best in 10 years), it was still very active and competitive. There is still a shortage of stock, which presents great opportunities for sellers. He says it is not a particularly noteworthy market for semi-migration but very active in terms of locals, especially first-time buyers.
Great areas for buyers include Walmer, with an average house price of R2.7 million; Summerstrand, with an average price of R2.55 million; and Lorraine, with an average transaction price of around R1.4 million.
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