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trends1CURRENT PROPERTY TRENDS IN CAPE ST FRANCIS :

Entering the beginnings of a Seller’s market

The Cape St Francis Property market has moved into what can be categorised as the beginnings of a Seller’s market after a bumpy recovery phase. This is reflected very well in the substantial property sales in Cape St Francis during 2018!

The number of property sales per year in Cape St Francis has increased steadily over the past 3 years with 68 properties being registered during 2018! What is notable is that the average price of freehold properties has increased steadily since 2010 (there was a hiccup in 2015 but prices bounced back in 2016) topping out at R1.8 million on average in 2018.

High end Sales and Developments Taking Place:

A number of high end sales of R11+ million for beach front properties have been concluded and many high end homes have been built in Cape St Francis in prime locations fronting both the beach and the rocky coast.

The injection of this sort of capital into Cape St Francis is raising the price bar of prime Cape St Francis Properties – and with a world class beach and a limited supply of property – prices are likely to continue to grow at a level which outstrips inflation.

It is a known investment trend that during periods of economic & political uncertainty and market volatility, individuals often become more cautious about their investments, which results in investors seeking out property which, although less liquid, provides more stability to an investment portfolio. Research we have done has shown that a well selected property in Cape St Francis has outperformed inflation and has generated a better return than equities.

Entry Level and Vacant Plots in High Demand but Middle of the range Sales Remain Slow:

We have seen an increasing demand for plots with sales registered moving from only 2 plots in 2010 gradually increasing to 15 in 2016 topping out at 33 in 2018! We have moved from an oversupply of plots to a lack of supply and prices have firmed and increased in selected areas of Cape St Francis – particularly in the central area on the seaside of Da Gama Road and fronting the Rocky Coastline.

 

The same is true for improved properties in the R1 million to R2.5 million range – demand has steadily increased and currently there is a lack of stock in this price range compared to mid-2017!

 

There is less demand for properties in the mid-range of R2.5 million to R4.5 million with comparative properties in Santareme offering far better value for money when directly comparing the improvements and buyers/investors are struggling to comprehend this. It is clear that due to the limited supply factor in Cape St Francis property (see below) prices are holding up far better than areas such as Santareme and prices for plots and improved properties are reflecting this

 

A Slow Recovery Predicted:

We have certainly come off the lows of 2007 to 2010, but as predicted, the recovery of the property market has been a slow and bumpy road with house price growth (with the exception of Cape Town, the KwaZulu Natal North Coast areas, Soweto & some other pockets) being largely below the inflation rate for most of the past 8-10 years.

Whilst the market remains sluggish, we are encouraged by the level of listings – with less than 4% of total stock on the market and very few distressed sellers – property prices being achieved have moved upwards for prime property and sales are taking place much closer to the listed prices compared to a couple of years ago. This is due to a combination of sellers being more realistic about listing prices and the slow recovery in the property market.

Availability of Property to Purchase in Cape St Francis:  this remains limited when compared to our cousins, St Francis Bay or to our distant relative, Jeffreys Bay.
There are a limited number of properties in CSF [800], a factor which is unlikely to change due to the area being surrounded by nature reserve and protected green areas. In addition to this, Cape St Francis tends to be less of a speculative market than St Francis Bay, meaning that owners of property are less willing to sell properties in this area having bought because of an emotional tie to childhood holiday memories or a desire for a particular kind of lifestyle offered by this laid-back area.

 

The successful buyer in Cape St Francis learns that one is unlikely to find the property, in the condition one wants, in the area of Cape St Francis that one wants and at a desirable price. With many rustic type holiday homes, it is wiser to choose the location that appeals and then to be prepared to work with the property that offers this.