Time to stop to smell the flowers
As we head in to the final quarter of what’s been a whirlwind of a year so far, it’s not a bad idea to slow down a bit and reflect. With regional water crises, ongoing political shenanigans and unhinged international leaders dominating the headlines, it’s OK to feel uneasy. While fear often dominates the local news landscape, it’s pretty obvious that South Africa is still one of the best places to live in the world, even with our political and economic unease.
We who live in Plettenberg Bay feel particularly blessed, and recent sales figures for the area show that many people feel the same way, with property in the region remaining an excellent lifestyle and investment choice. We take a look at the numbers below and we summarize the property transfer movements for the first half of 2017.
We also look at the effects of the July repo cut, and what stepping out of the recession means, if anything, for the property market; finally, we reveal our Helen Melon Buyers Profile, an intriguing look at where our buyers come from.
Repo Rate cut in July
In July the Reserve Bank cut the repo rate by 25 Basis Points, edging it down to 6.75%. (The repo rate is the rate at which the central bank lends money to every day banks). The repo rate had until now remained unchanged at 7% since March 2016. Comments Helen Ward, Principle of HMP, “While the change is small, it is not insignificant. The repo rate drop, when combined with other factors like exiting the recession is adding more confidence to an already robust local property market. This is not always in evidence when you read the news. Either way, we’ll take the cut.”
Out of the recession
While many people continue to predict doom and gloom for South Africa, those that live here know better. So, while entering the recession was a blow, it was more a technical recession than anything else, and we’re now, technically, out of it. Here’s a simple explanation.
In June 2017 it was announced that South Africa had entered a technical recession after the economy contracted for a second quarter in a row. SA’s economy shrunk by 0.7% in the first quarter of 2017 after contracting by 0.3% in the fourth quarter of last year. It’s kind of like two losses in a row and been kicked into touch, or being sent to the naughty corner.
The good news is the economy has rebounded. Recent stats indicate that SA’s economy grew by 2.5% in the second quarter of 2017. Meaning, we’re back in the cool club. Well at least financially; either way, we’re not technically in a recession anymore.
Property sales in Plettenberg Bay for the first half 2017:
So, does all this good news effect the property market? Good news is always welcome in any market. The local property market in particular continues to be strong and stable, and the interest rate cut is most welcome. But more importantly, sales figures show that when an area is desirable, one where lifestyle choices become excellent investments, and often vice versa, demand will always prevail. We take a look at the main talking points to come out of this year’s first half stats.
Main talking points.
Sales growth in Plettenberg Bay & surrounding suburbs
Suburb | 2017 Sales | 2017 Ranking | Suburb | 2016 Sales | 2016 Ranking |
Whale Rock | 53 | 1 | Plettenberg Bay | 35 | 1 |
Keurboomstrand | 47 | 2 | Sea Side Longships | 33 | 2 |
Sea Side Longships | 41 | 3 | Keurboomstrand | 32 | 3 |
Plettenberg Bay | 36 | 4 | Whale Rock | 30 | 4 |
Bitou Nu & Knysna Road | 15 | 5 | Goose Valley | 18 | 5 |
Brackenridge | 18 | 5 |
Worth noting:
Property Sales by Value 2017
These numbers always make for interesting reading, but the highlights are:
R4m – R5m |
13 sales (2016), 7 sales in (2017); -45% |
R5m – R7m |
15 sales (2016), 13 sales (2017); -13% |
R7m – R10m |
4 sales (2016) 13 sales (2017); + 225% |
R10m – R15 |
7 sales (2016) 5 sales (2017)5; - 25% |
And, finally we take a look at our buyers’ profile for 2016/2017. Where have our buyers come from?
So, happy spring everyone, and if you looking to chat about your property or the property market email us, call us on 044 533 1589, or pop in for a coffee at our offices at 5 Formosa Place, corner Main and Crescent Streets.
Yours in Property
Helen Ward (Principle, Helen Melon Properties).
www.helenmelonproperties.co.za