"Coastal property demand is largely holiday home and retirement-driven and is subject to cyclical trends that depend very much on economic conditions, but pent-up demand may now be coming through," says ERA South Africa CEO Gerhard Kotzé.
And a straw poll of ERA's coastal offices lends support to this view. Starting at the sleepy harbour and diamond town of Port Nolloth, Marlize van Rooyen of ERA Carit says the festive season always brings fresh business.
"Buyers from upcountry areas as far afield as Pretoria, Thabazimbi and Kuruman traditionally visit our area at this time of the year and this frequently results in sales," she says.
Sectional title homes are non-existent in the area, suggesting an opportunity for developers, she says.
Then beyond the Cape peninsula at Hermanus, a softer property market has seen serious sellers drop their prices by about 10% to 15%, says Beverley Newenham of ERA Carit Hermanus. "The R1,2m to R1,3m segment is the most active right now and not surprisingly, seafront properties are in the greatest demand. Some new development is under way and there are rumours of a new retirement village project."
Further east, Sedgefield's market is also looking up, says ERA National's Henning Swanepoel. "The commissioning of a water desalination plant in the town is expected to have a positive impact on demand for local properties which have seen their values remaining pretty well static for some while now," he says.
At Jeffreys Bay, the market has picked up, bank lending has improved markedly and the R1,2m to R1,5m market is the most active, says Lindy Cooper of the local ERA office.
"We have a relaxed atmosphere and in every way we are a holiday and retirement town with a wide variety of property types and prices. The Christmas period prospects are good."
In KwaZulu Natal, Carol Pienaar of ERA Unique Amanzimtoti says that although the petrol price, interest rates and the National Credit Act (NCA) have definitely slowed the market down, the "smart money" is looking for bargains right now and cash buyers have emerged.
Meanwhile on the KZN north coast, Mtunzini is being billed as the province's best kept secret. Sales and values have held up well and the market is picking up. There are a surprisingly large number of expat buyers.
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