Garden Route luxury leisure property

High-end and leisure home buyers are turning to the Garden Route towns of Knysna and Plettenberg Bay, and in no small way.

This is according to Pam Golding Properties area principal, Ling Dobson, who says real estate across all sectors and price ranges is in demand.

They are not only seeing a resurgence in home buying, including vacant land sales, there is also keen interest in business premises in Knysna CBD and industrial areas, as well as rising interest in guesthouses, particularly among German investors.

“At present, the lower end of the residential market is experiencing stock shortages. An interesting trend is that many of our existing rental clients are changing their status to buyers, while long-term rentals remain in short supply,” she says.

Dobson says home buyers at the top end have featured prominently, especially from Cape Town and Gauteng, with some relocating in this area, while the leisure market has re-emerged, with buyers acquiring second homes for leisure breaks.

While luxury homes generally sell upwards of R10 million, and there were 10 such top-end sales in 2014, over the past 18 months, properties right on the beachfront in Beachy Head Road in Plettenberg Bay have been fetching between R26 million and R28 million for erf sizes ranging from 800sqm to 1 600sqm.

She says in the hamlet of Buffalo Bay, about 20 minutes from Knysna towards George, a buyer bought two adjacent vacant erven of 440sqm and 488sqm for a total of R13.6 million, R5 million and R8.6 million respectively, in order to amalgamate the properties and build one high-end home.

A third vacant stand of 565sqm was acquired for R5.4 million by a buyer who lives on an adjacent erf for incorporation into his existing property. The three adjacent vacant stands were previously owned by the local municipality as one erf, and subsequently subdivided prior to sale.

Dobson says the fact that vacant land has come back into play is always a good indication of a turn in the market, leading to more constant, building-related services and job creation.

“There is new vigour and confidence in the property market. Construction of new homes is taking place and new developments are spearheading the resurgence in building activity.”

For example, she says 12 houses are currently being built at Beachy Head in Plett. In Knysna CBD, a number of older buildings have been revamped to offer appealing retail space as well as new coffee shops and restaurants.”

Knysna is also set to benefit from an investment of R150 million in a high-speed fibre optic cabling network, which is to be installed across the municipality. This, coupled with competitive rentals and low overheads, is expected to attract large corporates that do not need to be located in the cities.

Dobson says such a development would create further demand for the commercial and residential property markets, as well as other economic opportunities.

Plettenberg Bay is in the spotlight as well, with local headline news that Starlite Aviation Group is planning to relocate to Bitou, injecting an investment of over R100 million into the local economy.

The academy intends accommodating about 200 flight school students in the area each year, bringing further economic, employment and tourism spin-offs, as well as the potential for increased investment in Plett.

Dobson says interest in farms has also re-emerged, with a gentleman’s farm in the Plettenberg Bay area recently fetching R24 million, and wine farms being listed for about R29 million. Bramon Estate, the first wine-producing farm situated so far east of the Western Cape Winelands, is currently on the market for R29.5 million.

At present, there are some 18 wine farms in the area, either producing or being developed. The Plett Wine Route is actively pursuing its goal of becoming established as a world-class wine region.

With excellent local schools, Oakhill in Knysna and Greenwoods in Plett, as well as good, well-run government schools, wine farms, polo fields, ocean and forest, Knysna and Plett are the playground for fun-loving families and healthy outdoorsy people, says Dobson.

Both towns are thriving, with well-run municipalities clearly evident, pristine beaches and lagoon, while Knysna is busy with a major upgrade to the sewerage infrastructure from the main road to the waterfront.

She says for commuters and leisure seekers, air connections are regular with well-priced flights to and from George or Plettenberg Bay.

In Knysna, the areas that are most sought after are Thesen Islands, Leisure Isle and Pezula Golf Estate, where properties sell between around R3 million and R9 million, while in the lower price bands there is good movement in Eastford, Rexford and Hunters, where family homes can be purchased from R1.1 million.

In Plettenberg Bay, the most sought-after areas are Brackenridge, Whale Rock and Riverclub, where average family homes range in price from R1.6 million to R10 million and beyond, says Dobson.

An unusual opportunity comprising a 440ha property perched above Plettenberg Bay with views and surrounded by mountain, forest and ocean has become available for a developer or private buyer. Priced at R69 million plus VAT, offers on the entire property or portions of the property are considered.

Dobson says only 10 minutes from the CBD and the area’s Blue Flag beaches, the property has been zoned for a range of leisure and lifestyle activities, including an 18-hole golf course, 450 residential units, equestrian amenities with existing stables, and a commercial node for restaurants and shops.

The property also includes 40ha of developed farmland with infrastructure and farmhouse, ideal for vineyards and olive groves. The new owner will play an integral role in finalising the existing master plans and will benefit from the current discounted value and huge tax incentives.