June 2016 Property Update

Seal Point Estates, Cape St Francis

Cape St Francis Property Update

The central area from the Holiday Resort towards the lighthouse is the region where demand is strongest; the majority of inquiries we receive are for this area of Cape St Francis. Property listed which is central often sells to our pre-qualified buyers before marketing can begin.

Furthermore, we have seen how the lack of listed properties for sale in the central area, which can be considered prime due to their views or proximity to the beach, have increased substantially. The up-market renovations and new builds taking place in the village have started to affect the sense of place of the village. No longer is Cape St Francis a quaint middle income holiday enclave. It now hosts some of the wealthiest entrepreneurs and corporate moguls in South Africa. One prime site which is being developed, with estimated construction costs of more than R20 million is testament to the new paradigm in our coastal surrounds.

General Property Update – buying an existing home or building new

Something you might notice when looking to purchase property is that there is an inconsistency between the cost of purchasing vacant land and building, versus buying a developed property.

When you sell your home, there is no guarantee that the value of the home has kept up with inflation in real terms. On the flip side, when you decide to purchase a vacant plot and build your home, you have to accept that the materials and construction costs such as labour intrinsically retain inflationary pressures. Additionally, many of the components which comprise the final fitting of the home are imported products, thus adding additional direct price increases via currency risk.

Some recent figures from FNB’s property barometer state that the gap between the costs of new homes versus similar pre-owned homes is at 25.3% and that it is the highest since 2004. So, despite the fact that the economy is sluggish and that the property market in general has seen anemic growth, the cost of building a home has continued to increase rapidly. Something to consider when deciding on whether to buy an existing home or build new.

Should you wish to list your property or enquire about purchasing, please visit us next to the Cape St Francis Mini Market at No. 5 Da Gama Road, or send us an email to jal@sealpointestates.com or frieda@sealpointestates.com

Kind Regards

Frieda   083 518 5606

Jal        072 559 0575