Harcourts Reports Strong Summer Holiday Property Market in Coastal Towns, Driven by Semigration
Category Industry News
As the summer holiday season draws to a close, Harcourts South Africa, a leading real estate company with offices across the country, has reported a strong property market in many coastal towns, driven in part by semigration. With increased interest rates affecting the property market, many were curious to see how this would impact holiday property sales and rentals.
According to Harcourts, many of its offices in holiday towns saw an increase in demand for both sales and rentals during the summer season, compared to the same period last year. This suggests that buyers and tenants are still looking to invest in coastal properties despite the current economic climate.
"In spite of the challenges presented by the COVID-19 pandemic and economic uncertainties, we have seen a robust market in many of the coastal towns we serve," said Harcourts South Africa CEO, Richard Gray. "Buyers and tenants are still interested in coastal properties, and we've seen strong demand across a range of property types, from apartments to luxury homes."
Harcourts' data also showed that many coastal towns experienced an increase in the average property price during the summer holiday season.
Table 1: Western Cape & Eastern Cape coastal residential property sales
This indicates that buyers are willing to invest in coastal properties, despite the increased interest rates and economic pressures, as well as the ongoing load shedding crisis we find ourselves in.
"We have seen an increase in average property prices in many coastal towns, suggesting that the market remains strong and resilient," said Gray. "This is good news for buyers and sellers alike, as it shows that coastal properties can still offer a good return on investment."
Harcourts' agents noted that there was a particular interest in properties that were close to the beach or had sea views, as well as those that offered good rental potential. This is in line with previous years, where such properties have been popular among holidaymakers and investors.
Semigration Continues to Drive Growth in Coastal Towns
Apart from the usual holiday market, Harcourts observed that semigration continues to provide a strong push to coastal towns.
Most coastal towns are within 90 minutes of the closest airport, making it in reach of most business hubs in South Africa. Many families have and continue to relocate to coastal towns around the country, driven primarily by safety concerns in the large metros as well as the quality of life provided by coastal towns.
General infrastructure improvements in many coastal towns have also kept up with the influx of buyers and families, with more shopping, recreational, medical, school and business facilities.
"Semigration has been a driving force behind the growth of the coastal property market in South Africa," said Gray. "It's no longer just about buying a holiday home, it's about investing in a new lifestyle. We've seen an increase in demand for properties that offer more space, better security, and access to quality amenities."
Residential Property Developers Unlock More Investment Opportunities
Residential property developers are also starting to unlock more investment opportunities in coastal towns, with more retirement developments coming onto the market over the next few years.
While the coastal property market has been robust, Harcourts notes that there are still challenges facing buyers and sellers. One such challenge is the impact of increased interest rates, which may affect affordability for some buyers.
"Increased interest rates can make it more difficult for some buyers to enter the market," said Gray. "However, we believe that the strong demand for coastal properties will continue, and that buyers who are able to invest now will see good returns in the long-term."
Overall, Harcourts' data suggests that the coastal property market in South Africa remains strong and resilient, despite economic uncertainties and increased interest rates. As the country continues to navigate through these challenges, it is clear that buyers and tenants are still interested in investing in coastal properties.
Author: Harcourts SA
