The top end of the residential property market in the St Francis Bay area – including Cape St Francis, continues to gather momentum, proving even stronger over the past few years than the mid-range properties in the price bracket from R3 million to R7 million, says Pam Golding Properties area principal Richard Arderne.
The last two years have been good for sales over R10 million with six since the start of 2015 compared with only two ever prior to that. Out of the total of eight sales above R10 million, two were private sales and Pam Golding Properties concluded three of the six high end sales by estate agents, one of which was for R21 million.
Notable recent sales by PGP include two beachfront homes sold for R11.5 million and R9.4 million respectively.
Says Arderne: “Further reflecting the growing investor confidence in the area, over the past two years approximately 20 houses have been built or renovated which each represent a capital investment of in excess of R10 million (including the plot value)”.
“Many of these properties are ideally situated on the canals, mainly in Mayotte Circle, Marina Island and Sunset Avenue. As they offer exceptionally scenic views and instant access to a host of leisure activities, the canals remain the most popular area, particularly as no further canals will ever be built, further enhancing the exclusivity value of these homes”.
“Currently there are relatively few canal houses on the market, with very little available under R5 million. Most of these waterfront homes are priced from R5 million up to R25 million.”
Arderne says further evidence of the popularity of the canals is the exceptional holiday rental demand in peak seasons, with some very high daily rates being achieved, ranging from over R10 000 and even up to R15 000 per day.
According to Deeds Office statistics, for the period from March 2016 to February 2017, total market sales for St Francis Bay and Cape St Francis were approximately R350 million. For this period, Pam Golding Properties sold property to the value of R156 million, which represents about 45 percent of total market sales. “This is our best year since we acquired the PGP franchise in 2005 and our third consecutive year of breaking R100 million in annual turnover,” says Arderne. “We also increased the value of holiday rentals by 28 percent to almost R6 million for the past year.”
Sales at St Francis Links golf estate have also picked up, recently reaching the milestone of 100 homes completed, with PGP experiencing solid activity and achieving R1.4 million for a prime plot. In addition, demand for apartments at Port St Francis is increasing.
Arderne says buyers are about an equal 50:50 split of permanent residents and leisure purchasers, with an ongoing trend towards more and more Gauteng buyers relocating. At least half the permanent buyers are under the age of 60.
While considered the most exclusive location in the entire Eastern Province, St Francis Bay (which includes Cape St Francis) offers good value when compared with many Western Cape resorts such as Hermanus and Knysna, adds Arderne