During tough economic times, seaside holidays are often the first the go, impacting on these towns’ property market.
Margate, the south-coast holiday town 135km from Durban, is well prepped to withstand the coming market downturn, according to local real estate expert, Charl Cilliers, Rawson Property Group franchisee.
“Margate has always been fuelled by the tourism industry,” said Cilliers. “It’s particularly popular with local families as a more affordable alternative to the North Coast, and that’s going to play into its favour as holiday budgets come under fire.”
Cilliers revealed that around 75% of Margate’s sectional title properties are currently let out as holiday accommodation, while 35% to 40% of freehold properties operate on a similar basis. A decrease in the length of holiday stays are expected, but Cilliers believes that occupation should remain high, especially with holiday-makers opting for Margate over pricier North Coast destinations.
Cilliers said that this optimism has reflected in local buyers, with an increase in sales enquiries observed over the last six to eight months. “For now we have a good amount of stock on offer, so the opportunities are there for the taking,” said Cilliers. “Prices are also stable, but will increase gradually over the next few years.”
According to Cilliers, Margate has property ranging from R400,000 for a one-bedroom flat to R6m for a luxury penthouse apartment. Cilliers elaborated that properties ideal for holiday accommodation are currently priced between R750,000 and R1,3m, offering a promising buy-to-let investment opportunity.