Rising demand for holiday apartments in Garden Route towns
While freestanding housing stock dominates in the towns across the Garden Route, there is growing demand for apartments, with some new developments finally coming to market, says Gail Rimbault, licensee for Seeff Knysna.
Sectional title complexes can provide more options for buyers and investors, and they are generally also more accessibly priced, she says. They are also sought-after for the convenience of lock-up-and-go with minimal maintenance as there is usually a Body Corporate which manages the apartment complex. For holiday homes and even those who are downscaling to the coast, this is the ideal solution.
While buyers include retirees and holiday home buyers, there is also high demand for rentals, both long and short-term holiday needs in these towns. She says many buyers also combine their holiday purchase with the option of renting it out when not needed and benefiting from a lucrative rental return on their investment.
A key benefit of investing in the Garden Route holiday towns is that they are hugely popular holiday hotspots, and experience high holiday traffic during the school closure periods, over weekends, and especially over the summer season.
Lightstone data shows that sectional title as a category of all housing stock in most Garden Route towns is still quite low with Mossel Bay (15%) and Plettenberg Bay (15%) the highest, followed by Knysna (10%), and George (6%). It also shows that most apartments tend to sell for over R2m with some exceptions.
Sectional Title Housing Stock on the Garden Route
Town Sectional Title as % of Housing Stock Ave ST Price Ave Lux ST Price Mossel Bay 15% R2m R3.6m-R3.8m Plettenberg Bay 15% R2.9m R5m Knysna 10% R1.5m-R2m R4m George 6%
R1.6m R3.9m
Source: Seeff/Lightstone
Notably, while only around 10% of Knysna's stock is sectional title, it represents about 20% of all sales activity over the last year, indicating the high demand for compact units in the town.
Compact units such as apartments are increasingly popular both for own use as well as holiday rentals, including Airbnb. The high demand has created opportunities for developers to come into the market with new offerings such as the Seahorse development, says Gail.
It offers 35 new units with one or two bedrooms, braai balconies, secure parking, as well as Wi-Fi and inverters. The complex also offers a heated swimming pool and sun deck. Prices range from R1.75m (one bed), and R2.325m (two bedrooms). There's also no transfer duty payable, says Gail, adding that these are a great addition to this popular holiday town. The development is also just a short walk from the Knysna Lagoon and Waterfront area.
These apartments appeal to a wide range of buyers, from those looking to retire or downscale permanently to the Garden Route, or as holiday or Airbnb investments for lucrative short or long-term rental returns. To facilitate hassle-free Airbnb income, Perch Short Stays will offer a complete turnkey service for investors, ranging from furnishing and marketing to management and maintenance.
Issued by Gina Meintjes
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