The tide has turned in the residential property market in Jeffreys Bay with average prices up for the first time since 2006 and more buyers acquiring homes for primary residence, reports Jaco Bothma, , area manager of Pam Golding Properties. In 2013 the average price was R626 000 compared with R756 000 in 2014 to date.
“In recent years, the 50:50 split between primary and leisure buyers has swung in favour of 70 percent primary residential purchasers and 20 percent leisure buyers, which augurs well for ongoing sustainability of the market. However, there are still leisure buyers active in the market.”
Bothma says while there are currently fewer retirees buying in the area, mainly due to a shortage of stock in retirement villages with frail care, consent has recently been granted by authorities to expand the local clinic to a hospital, which is positive for the town.
“Generally, we are seeing more enquiries than the same time last year, with a high demand for properties priced between R800 000 and R1.2 million. In the past three months, there were 24 sales in Jeffreys Bay in the price range between R800 000 and R1.5 million – with an average price of R1.14 million.
“Notably, four beachfront homes recently sold in the price bracket between R4 million and R5 million, whereas over the past few years the price of residential properties has not breached the R3 million mark.” Two of these properties were sold by Pam Golding Properties – a modern, five bedroom, four bathroom home which fetched R4.2 million and a seven bedroom, four bathroom home which sold for R3.5 million. The other two properties sold were a modern four bedroom, three bathroom home with flat which achieved a price of R4.625 million and a six bedroom, three bathroom house which fetched R3.15 million.
Pam Golding Properties is currently experiencing a high demand for full title properties below R1 million, which are snapped up mainly by locals entering the market, with a few buyers looking to retire in the area. “Properties in Jeffreys Bay are still affordable and looking across the market in general you can acquire a home with three bedrooms and two bathrooms, two reception rooms and two garages for between R800 000 and R1 million – and even from just R700 000 to R800 000 for such a property in Aston Bay,” says Bothma.
He says homes that are realistically priced are selling, however, there are still sellers with high expectations which exceed the current, market-related prices which purchasers are willing to pay. Some of these sellers are those wanting to relocate to live closer to children and grandchildren, who will move if the sale of their existing property pays for their acquisition in another area.
Bothma says the rental market in Jeffreys Bay is performing exceptionally well, being identified by credit bureau TPN as one of the best areas for tenants who pay their rent consistently and on time, with 98 percent of tenants in good standing.
“While the average rental income is R4 500, some properties can fetch up to R9 000 per month. Landlords can expect to achieve rental income between R4 500 and R5 000 for a property consisting of three bedrooms, two bathrooms and a double garage,” he says.
For further information contact Pam Golding Properties Jeffrey’s Bay on 042 2932801 or email email@example.com.