Now is the time to invest in property in Plettenberg Bay with average prices at 8 year low.

Sales figures for 2014 show local property market grows in volume but down on value.
Sign of things to come? 

When it comes to property everyone has an opinion, or multiple opinions, on what the property market is doing. Most of the time these opinion pieces are based more on getting the property company’s name in the media, than any real information. It’s not so essential what they say, but that they say something. A lot of it is complete nonsense. At Helen Melon Properties we prefer to focus on the facts and figures, and draw our conclusions from there. The figures don’t lie.

We decided to take a snapshot look at sales figures for 2014 and compare that to previous years. Please note, this is based on figures taken from the deeds office and, while we endeavour to be as accurate as possible, sometimes it takes time for transfers to be captured onto Lightstone.

Let’s have a look:

2014:

• The total net transfers that took place in Plettenberg Bay from the 1 January – 31 December 2014 were 435. This compares to 380 in 2013 and 315 in 2012.
• The majority of these took place in Sea Side Longships which registered 84 transfers in 2014, compared to 53 in 2013 and 49 in 2012.
• In second place by volume of sales for 2014 was Plettenberg Bay with 46 registered transfers, compared to 44 in 2013 and 27 in 2012.
• During 2014, 41 sales took place in Keurboomstrand, 40 in Whale Rock while the remainder of the suburbs enjoyed sales south of 30.
• At the bottom of the pile for sales during 2014 was Baron’s view with 1 sale taking place, followed by The Crags with 3 sales and Robberg Ridge clocking up 4 sales.
• When to comes to prices achieved in 2014, 189 of the sales were under the R1M mark, 141 were between R1M and R2M and twelve were above R10M.
•  In 2013, 180 sales were under R1M, 105 were between R1M and R2M with 14 exceeding R10M.
• In 2012, 147 sales were under R1M, 80 between R1M and R2M with 13 exceeding 10M.
• During 2014 no sales were recorded in Harkerville and Piesang Valley.
• In 2013 no sales were recorded in Baron's View, Piesang Valley and Harkerville.                

When we compare 2014 to 2013, sales by volume increased by just under 14.5%. When we compare 2014 to 2012, sales by volume increased by just over 38%.  The volume of sales are picking up but what about prices.

• The average price achieved for both freehold and sectional title property in Seaside Longships has steadily declined year on year from 2010 to 2014.
  • Freehold properties came off an average high of R4 075 000 in 2010 to R1 735 000 in 2014, the lowest average price achieved for freehold property in this suburb since 2004/5.
  • Sectional title property in Seaside Longships came off a high of R2 066 000 in 2008 to R1 061 000 in 2014 almost in line with prices achieved in 2004/5.
• The average prices achieved for Freehold properties in Signal Hill, Upper Robberg and Seaside Longships are in line with the average prices achieved in these suburbs between 2004/2005.
• The average prices achieved for Freehold properties in Poortjies, Lower Robberg, Bowtie and Keurboomstrand are in line with the average prices achieved in these suburbs between 2006/2007.

Suburbs of interest are Lower Central and Cutty Sark.  Average prices achieved for freehold properties in Lower Central have risen steadily off their lowest level of 2010 closing slightly softer in 2014 compared to 2013.  The all-time high average price achieved in Cutty Sark was in 2011.  Average prices fell out of bed in 2012 & 2013 rebounding back in 2014 to the third highest level recorded during the past ten years.

Gated estates are bucking the price trend with the average prices achieved in both Goose Valley and Riverclub in 2014 the highest in the ten years under review.  Brackenridge, a newer estate with re-sales of developed stands only recently coming onto the market, is clearly following this trend.  The number of sales that took place in Brackenridge in excess of R2M in 2012 was four, 2013 six and 2014 eleven.

Suburbs under review are Baron’s View, Bowtie, Brackenridge, Cutty Sark, Goose Valley, Harkerville, Keurboomstrand, Lower Central, Plettenberg Bay, Piesang Valley, Poortjies, River Club, Robberg Ridge, Schoongezicht, Seaside Longships, Signal Hill, The Crags, Upper Central, Upper Robberg and Whale Rock

As usual at HMP, we have our pulse on the heartbeat of the market, and we will continue to monitor it, bringing you the real facts, no hype, no hot air.

Helen Ward
Principal
Helon Melon Properties

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