Towards the end of 2017, numerous estate agents noticed a downturn in business, but there was one property type which continued to excel against expectations. Holiday homes weren’t supposed to be selling, in fact, they were supposed to be selling less, but it seems that there were many people who were in the market to buy property in George, Plettenberg Bay, Knysna, Sedgefield, and other popular holiday towns.

FNB recently released a report that found the above to not only be true, but also that some of these towns are exceeding expectations. A recent FNB Estate Agent survey found that by the third quarter of 2017 there had been only a slight dip in the estimated holiday home buying percentage from the first quarter, a fact that is corroborated by the Sotheby’s International realty office in Plettenberg Bay, which reports an increase in buyer interest from the third quarter and into the new year.

Manager Principal, Steve Neufeld says that 2016 was a record year for them, and that 2017 was their second-best year to date with 2018 already off to a promising start.

“In spite of the weaker economy, there was still a healthy appetite for holidays homes, especially from Johannesburg buyers, and we didn’t notice any drop in these sales. In many of the coastal towns like Plett and Hermanus, this can partly be attributed to the changing property landscape. Until a few years ago, owning a holiday home in the most popular destinations were largely the domain of the wealthy, but a spurt in development in recent years has seen a supply of more accessibly priced homed enter the market and demand spiral.

“Entry level properties have fared particularly well,” says Neufeld. “Only a couple of years ago you could still find houses below R1,5 million but it’s risen to around R1.8m and it is becoming increasingly difficult to find homes below R2m.”