After enjoying the last long weekend prior to the end of the year, thoughts inevitably turn to plans for the festive season and ‘where are we going for the holidays’? It is also a good time to start think about holiday home investments, especially in the Knysna area, which is experiencing an upturn in property sentiment.
Knysna, its people and property market are experiencing a rebirth after the devastating fires that swept through it last June. According to Julian Buck from Jawitz Properties Knysna, many of the homes that burnt to the ground have been rebuilt and as a result there has been a resurgence in the building industry itself. “There is a lot of building going on and this means that spirits are high and the builders have spare money to invest in building speculative homes, which is spurring on the property market and driving up prices quite quickly.”
The property market along the Garden Route is bucking the national downturn in sales. “The market is very good here and our tails are up,” says Buck. “We are not experiencing any fire sales and there is solid supply and demand to maintain turnover. However, with prices constantly rising especially in sought after areas such as Thesen Island and the Knysna Quays, I would suggest that buyers get in now if they’re looking to purchase a holiday home.”
Of late, the Knysna area has seen a shift back to properties being purchased for holiday and investment purposes. These properties often have the dual function of bringing in holiday rental income and being a personal holiday home. At times, these properties also triple as the long-term retirement plan. “Even if the property doesn’t currently meet all these criteria, at least the owners are in the Knysna market and will at a later stage sell the holiday home to purchase a more permanent retirement home. Owners also have the ability to earn rental income from lettings as we have a vibrant and busy holiday letting market and bookings are already pouring in for December holidays,” adds Buck. According to Buck, prices vary greatly depending on the property’s location. “An average 3-bedroom freestanding home starts at R1.8m, whereas an entry-level 2-bedroom property located on Thesen Island is selling at R5.8m and for R4.5m at the Knysna Quays.”
Knysna, and the Garden Route in general, has consistently been an area that delivers good capital growth for residents and holiday home investors and I would encourage prospective buyers to use this time to investigate the market and purchase that home before the upswing kicks in further,” adds Buck.