Plettenberg Bay property is back in business. “Despite the challenges brought by the Covid-19 pandemic, our market is active again, in fact more so than it’s been for some time.
While about 90% of all sales fall below R4m, the market is active across the board,” says Kevin Engelsman, Seeff licensee.
There’s lots of activity in the R7m to R9m range, but agents are also quite busy showing homes from R10m to R15m and also in the R18m to R25m range. The luxury end of the market is also on the up with renewed demand for high-end R20m-plus properties.
“The perception that property prices are negotiable is only true where properties are not priced in line with the current market. Where they are correctly priced, sellers are achieving close to and even the full asking price,” Engelsman says.
Given that sellers have only one chance to create a favourable first impression, new listings are currently attracting the most attention. It’s therefore important to stage a property in a way that will create a strong demand for it.
“Bear in mind,” he says, “that most sellers in Plettenberg Bay don’t need to sell, especially if it’s a secondary property holding, and they’re prepared to wait for the right price. Where sellers do offer a discount on the asking price, it’s generally only about 5% to 10%.” Low offers are not accepted, and the buyer simply risks losing out on the property, even at the top end of the market.
A key emerging trend in Plettenberg Bay since the onset of the pandemic is that people are now buying to work from home. Engelsman says there has been quite an influx into the town since late March as people look to enjoy better surroundings while confined to their homes and working from home.
There’s also been a major pick up in the rental market with a shortage of stock, especially at the higher price levels being the R17,000 to R25,000 per month range and some demand ranging to R27,000 per month.
It’s therefore a great opportunity for property owners to put their homes into the rental market or to invest in property for the rental market right now.
“Overall, the demand for property is currently much higher than the number of new listings that are becoming available. In contrast to what we may have expected, there’s a shortage of luxury stock for sale and rent and opportunities abound,” concludes Engelsman.