Plettenberg Bay now ranks in the top three premier property locations in the country next to Cape Town’s Atlantic Seaboard and Sandton in Johannesburg.
That is according to the latest New World Wealth Survey of wealthy suburbs, undertaken in conjunction with MasterCard.
Kevin Engelsman, Seeff’s licensee, says that according to the survey some 260 millionaires own second homes in Plett, 120 of which are worth more than R20m. This is the highest number of homes valued at this price outside of Cape Town and Johannesburg.
Plett is attracting a lot of attention and this has boosted the property market, he says. Save for a shift in demand to the more affordable R10m and below price band, there appears to be little cooling in the demand for property here.
Seeff sold R132m worth of property over the November to February summer period. This is twice as much as during the corresponding period of the previous year and has now put Seeff firmly ahead in terms of agency market share.
While the bulk of the sales activity is still under the R2m mark, about 20% of all activity was above R10m. That is notable if you consider that very few properties sold above R5m just five years ago, says Engelsman.
According to the latest Private Property data, the average price for a two-bedroomed apartment is R1m and for a three-bedroomed apartment around R1,5m. A three-bedroomed house sells for around R2,43m and for a four-bedroomed house for around R4,17m.
“In reality though,” says Engelsman, “you can still find a stunning two-bedroomed apartment for around the R600,000 mark and a house for well under R2m. There is also still plenty of land up for grabs under R400,000 and you can even get ocean or river views for under R600,000.”
While most buyers are looking for good value, there has been no shortage of top end sales over the last five years with several R20m plus transactions ranging to as much as R43m for a beach house on Robberg Beach, sold jointly by Seeff.