This historic seaside town has seen an influx of migrants – especially from Joburg

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Touted as the adventure capital of the Garden Route with some 50 related activities, 60km of golden beaches, it’s no surprise that the coastal town of Mossel Bay is a major draw for homebuyers.

Just half an hour’s drive from George Airport, and home to the Big Five, as well as high-quality medical facilities, Mossel Bay retains its historic appeal as a retirement destination, with a third of barn owners – namely those who have owned their properties for more than 12 months. – are older than 65 years.

However, according to Pam Golding Properties director Stephen Murray, with affordable housing still the city is attracting more young adult buyers under the age of 35, who made up 14% of total buyers in the past 12 months.

“The city’s appeal goes beyond quality of life, with good municipal management and a resilient and diversified local economy enhancing its attractiveness as a long-term investment destination. Ratings Africa has named Mossel Bay as South Africa’s most financially sustainable local government in both 2021 and 2020.

“The city plans to expand the Da Nova Medical Precinct to accommodate more hospital groups and rehabilitation centers, both for permanent residents and to encourage health tourism,” Murray said.

With George Airport just 40km away, residents can easily commute to Johannesburg or Cape Town, while coupled with the Port of Mossel Bay – which is undergoing an infrastructure upgrade – makes it possible for businesses to import and export directly from the city.

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High demand for living in an estate

Currently, 83.1% of homes are owned, with 20.5% in estates, Murray said. “I believe the trend towards estate living is here to stay, particularly for existing or built homes in sought-after, established estates such as Pinnacle Point, which has seen strong activity in recent years.”

Murray said strong demand for estates could partly reflect an influx of migrants – especially from Gauteng, who often opt for an estate lifestyle when moving to coastal towns, and for whom the Western Cape is a preferred destination.

According to Lightstone, Mossel Bay had the highest number of sales to semigrators in the Western Cape last year, with a clear preference for houses in estates.

Trend to section title

“In line with this, I also believe that a new trend we will see is the advent of secure, gated estate sectional title especially because of its affordability in a safe, lifestyle environment,” Murray says.

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“This supports the value of an estate such as the recently launched Renosterbos Estate, which currently sells homes from around R2 million, which caters to a cross section of home buyers, including retirees, families and young, first-time buyers. Renosterbos Estate also includes vacant plots of 450-850 sqm, priced from R1,175 million, also including VAT, with scenic gorge and mountain views.”

Future new sectional title developments in Mossel Bay are likely to be priced from just under R2 million (including VAT with no transfer tax due), to luxury penthouses that will attract premium prices comparable to luxury owned homes.

The market is potentially not just the mature buyer of upkeep maintenance, but also investors, including younger buyers who understand the benefits of apartment living, Murray said.

Mossel Bay house prices have risen steadily over the past decade, according to Lightstone, despite the negative economic impact of Covid. And according to TPN, growing demand has in turn pushed rental values ​​on both property and section properties.

Despite this, the city still offers value for money, Murray said. There is talk of building schools in Mossel Bay, one of which is on an estate, which will only increase the area’s appeal.

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“Interestingly, our sales are mainly trending in the R3.55 million range, with the high end to around R6 million enjoying brisk activity, while we have also closed numerous sales around R10 million, especially when considering the combined capital investments in vacant land such as in Renosterbos and the construction of more expensive homes.

“Positive for buyers in Landgoed Renosterbos, which offers residents expansive views, the development has already been realized with roads and infrastructure and a number of houses have already been built. This underlines the commitment and credentials of the developer, who has been involved in housing developments such as Kraaibosch and Welgelegen estates in George, as well as in the Cape.”

The increased demand for sectional living in no way diminishes the appeal of owned homes, Murray said. “In general, buyers like the idea of ​​a property owned property, but an increasing number of sectional title listings within estates are likely to become more appealing due to its convenience, security and affordability. For example, a two or three bedroom apartment tends to be cheaper than a owner-occupied home in the same or comparable neighborhood.”


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