Second interest rate cut provides more incentive to sell now

With the second successive interest rate cut now in effect there is more incentive for sellers to get into the market right now. The news that inflation had dipped below expectation to 2.8%, which is also below the Reserve Bank's target range, provided another 25pbs interest rate cut - most welcome news to the property market.

The interest rate is now down by a total of 50bps since September, and more cuts could follow early next year. This will, however, depend on the inflation outlook which the Reserve Bank still views as uncertain given the stronger US Dollar and effect on the South African Rand, and economic impact of the ongoing wars in Europe and the Middle East.

While the overall market is still down to pre-pandemic levels, and slightly slower compared to last year - largely due to the high interest rate - the recent cuts have provided a positive boost for the market. Borrowing costs are down, and with the busier summer selling season upon us, there are good reasons for sellers to get into the market.

Sales data shows that the Plett property market provided plenty of opportunities for sellers this year. Lightstone data shows that by the end of October some 447 transactions worth over R1.936 billion were concluded for the Plett market at an average price of R4.33 million.

The highest volume of sales, comprising almost 55% of all transactions, fall within the R1.5m-R3m price band and a further 31.32% in the R700,000-R1.5m price band. At the upper end of the market, some 5.37% of all transactions this year have been over the R5m-plus price band at an average price of R5.8 million.

An analysis of the transactions by property type further reveals that the estates (mostly freeholds in estates), have been some of the hottest sellers this year, making up 47% of all transactions. Freehold houses (not in estates) comprise 29% of all transactions. The majority (53.17%) of transactions were in the R1.5m-R3m price range, and a further 31.75% in the R700,000-R1.5m range. 3.97% were concluded above R3 million.

Sectional title sales make up 24% of all transactions this year. 70% of these are in the R1.5m-R3m price band, 24.55% in the R700,000-R1.5m range, and 5.45% above R3 million.

In terms of freehold sales in the estates, the data shows that 51.4% of these fall into the R1.5m-R3m price range, a further 36.87% in the R700,000-R1.5m range, and 7.26% above R3 million.

In terms of the overall market, a notable 5 sales transactions were concluded over the R20 million price mark. These were mostly in Beachy Head Drive (Sea Side Longships), at R27m, and a significant R78 million concluded by Seeff, which also sets a new record price for Plettenberg Bay. Additional high value sales of R28.3m, R29m and R46.4m were concluded in the Duin en See Estate, also in the suburbs of Sea Side Longships.

Other popular estates with high end sales concluded over R5 million include Whale Rock Hill, Whale Rock Ridge Brackenridge Nature Estate, Lynnwood Estate, Baron's View, Whale Rock Sun, Whale Rock Heights, Robberg Ridge, The River Club, Brackenridge Nature Estate, Schoongezicht Country Estate, Turtle Creek Golf Estate, Woodlands Country Estate, and The River Club.

With the declining interest rate positively impacting buyer demand, and more buyer activity, there is a good opportunity for sellers, especially as we head into the busier sales periods over the summer months and the early part of the new year.

To maximise the chances of a successful sale, it is important for sellers to choose the right agent. Agents are not all the same, and while sellers might be motivated to choose an agent based on a lower commission, the property might end up not selling, or selling for a lower price than what you could have achieved.

Given that the sale of a property is a significant financial transaction, it follows that choosing a good, local area agent with a successful track record of sales will deliver the best results. Experienced agents with deep local knowledge offer a significant advantage. They understand local market trends, pricing dynamics, and the ideal buyer profile.

A strong sales history is a reliable indicator of an agent's effectiveness in terms of understanding the marketing, effective marketing, finding the right buyer, and negotiating an optimal sales transaction. The agent should also be a good communicator, and keep the clients informed throughout the process.

It follows that a reputable brand with a proven track record offers a distinct advantage to sellers. The Seeff property brand offers six decades of expertise and outstanding reputation for success. Our agents stand out from the competition with a proven track record of sales success.

Our team offers a blend of experience and expertise, backed by a strong brand and the latest technology. We have solidified our position as a market leader in the Plettenberg Bay property market, once again achieving some of the best prices for our clients this year, including setting another price record for the highest sale ever achieved in Plett.

Now is a great time to put your property on the market. As an added incentive, don't forget that if you sell with Seeff before the 30th of April 2025, you could be entered into our fantastic R1 million cash prize competition.

Don't delay, contact your local Seeff agent today!

Yours in Property

Seeff Pletteberg Bay
044 533 0311
plett@seeff.com