Mossel Bay's price range 'wide'

Although property prices in some suburbs of Mossel Bay have risen to take their place among the highest in the country, there are developers who have not lost sight of the affordability limitations of the majority of investors.

Property prices in Santos, a suburb in Mossel Bay, have risen to take their place among the highest in the country, with bachelor flats tipping the R1 million mark and family homes costing upwards of R2 million.

That's according to Stevie Keuler, manager of the Realty 1 International Property Group in Mossel Bay, who says even vacant land is commanding premium prices, with a sea-front stand in the upmarket suburb of Bayview recently selling for more than R5 million.

But, he adds, the wave of new residential development currently springing out of the ground in the area (which includes an "outstanding" golf estate development in Pinnacle Point), is ensuring that not only the well-heeled are able to enjoy living within easy access of the sea, spectacular views and an enviably low crime rate. While many new developments undoubtedly have hefty price tags on them, some developers have not lost sight of the affordability limitations of the majority of retirees and investors, who tend to shop in the R800 000 price range, says Keuler. Diaz Beach, for example, is undergoing massive yet comparatively affordable new development, offloading units priced from R795 000 to R3 500 000 on to the market. Mainly security estates and apartments, initial sales of these properties are rapid, he adds, although re-sales have slowed as a result of buyers having an abundance of choice. Without doubt, Keuler says that movement in the re-sale sector is being driven by quality of building work, finishes and the location of the development.

According to Keuler, the economy of the Mossel Bay area is largely driven by tourism. "The whole area's commerce, including real estate, is linked to the seasonal influx of holiday visitors. We are therefore much busier during the summer months, although the ratio of winter buying, especially among overseas holiday makers, has picked up steadily in the 24 months." But, he warned, those sellers who have adjusted their prices upwards in the wake of the countrywide property boom of 2004/2005, are in for a long and disappointing stay on the market. Labelling market activity in the Mossel Bay area as "healthy", Keuler says sales volumes have nevertheless shown a slight decline from the start of the year, mainly due to buyers resisting "exorbitant prices". "The over-riding feeling among buyers, many of whom come from inland, is that properties are overpriced when they consider what they are getting for their money. The result is that these properties are remaining unsold for months."

According to Keuler, best value for money is to be found in the area between hilly Hartenbos Heuwels and Hartenbos proper, which overlooks the Hartenbos River mouth, the mountains and the ocean. Jut below Hartenbos Heuwels, buyers – who tend to be holiday home purchasers and investors - can still find townhouses from R800 000, flats from R700 000 and houses or duettes from R1 150 000, he says. Best rand-for-rand value is currently available in Rheebok, Fraaiuitsig and Danabaai.

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