Property on St Francis Links is booming! But are Links prices now expensive?

by SFT | Jun 3, 2024 | St Francis

By Richard Arderne

To help answer this question, let’s have a look at St Anne’s Close, one of the very nicest areas on the Links. 

The original plots transferred from the developer between 2006 and 2007 at an average price of R1.1m.

Since the launch, there have been 46 vacant plot re-sales sales in St Anne’s Close:

40 plots sold between 2009 and mid 2023 at an average price of only R650,000.

(almost certainly all at a loss versus the original prices)

Then something happened!

(a year or so later than it happened elsewhere like the canals)

Over the last 9 months there have been 6 sales at an average price suddenly way higher, R2.2m!

But, with South African inflation, if you paid R1.1m in 2006, you would need to sell your plot today for R3m to have the same buying power with your proceeds.

In other words, these recent St Anne’s plots have been bought at bargains (on average at R2.2m) relative to the original launch prices, and at great value, especially considering the St Francis Links lifestyle, the cost of servicing plots to such a high standard, with great views, plus all the other Links features … third best golf course in South Africa, world class security, wonderful clubhouse, gym, heated pool, nature walks, and community spirit!

The escalation in vacant plot prices has not only been happening in the St Anne’s area of the Links, but the escalation has probably slightly less dramatic elsewhere.

For example, the few plots left in the driving range area (around 600m2 each) have sold post Covid for about R550, 000, at least double the prices from the pre-Covid years.

Consider also our list of St Francis Links plots for sale:

December 2018:

28 plots under R1m, from R130,000, only two over R1m (one was our own plot for R1.9m, the other R1.1m)

May 2024:

25 plots for sale, from R850,000, only five under R1.5m, six R1.5m – R2m, 14 over R2m (of which two are R4m and one is R6.5m)

Links lots have on average at least doubled in price over the last five years, possibly more! But as per above are still excellent value.

What about plot price escalation in other parts of St Francis Bay?

For example, Santareme and Village plot prices (for non-prime plots) have also escalated but less than on the Links, on average have only doubled:

In Santareme, plot prices have doubled from about R200,000 on average pre-Covid to about R400,000 now, and Village plots (for example Lyme Road North) have also doubled, from about R300,000 to about R600,000 now.

Why am I analyzing plots and not houses? This is because plots don’t undergo changes (eg renovations) like houses do, so its way easier with plots to spot trends than with houses.

Pam Golding’s involvement with property on the Links began in 2005 when I bought the Pam Golding franchise. We sold plots for a few years, mostly at a small profit for the seller, until the financial crisis of 2007/2008, when the “wheels came off”.

We soon had way too many plots for sale, so we contacted all the sellers and suggested that they should only consider selling if they HAD to sell.

So we reduced the stock considerably, and then made many sales over the next few years, but at rather low prices, which hardly moved up until Covid dramatically elevated property demand for St Francis.

Personal Note:

My wife and I bought a small Links plot for a very low price in 2015, and built a small house in 2019, which we occupied for two years, which we really enjoyed.

We then bought another Links plot, a prime plot in Old Head Road in 2019, but the quotes we received for the house we wanted to build were too high, and we were fortunate to find a house on the Santareme coast, for less than those quotes.

But we did manage to sell our plot and our house for considerably more than we paid for them.

PS Our Links specialist Saria Blaauw sold properties to an amazing value of R42m in the first two months of our financial year, that is March and April.

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Development Paddlers receive safety kit donation from St Francis Rotarians

by SFT | Jun 3, 2024 | St Francis

L-R

Roger Smith, Berven Rossouw, Rtns Brian Codling and Ivan Beaumont, Munda Tayi, Kamva Nkosinkulu, and chairman of St Francis Paddling Club, Charles Jonsson (photo thanks to Wild by Nature)

St Francis Paddling Club Academy members were recently recipients of a safety kit valued at R11 000.00, kindly donated by the Rotary Club of St Francis. Four young men from Sea Vista have become accomplished paddlers under the guidance of Dave Louw, participating in regional competitions from Cape Town to East London and, last year, even going to Germany. This sponsored safety kit now enables them to move from flat water paddling to surfski paddling, where we hope they will also excel.

To maintain the cycle of promoting sport, particularly paddling, in the Sea Vista community, these young men will assist with mentoring the next intake of Development Paddlers to the Club.

Ocean View Housing project set to recommence – Kouga Municipality

by SFT | Jun 3, 2024 | St Francis

JEFFREYS BAY – After overcoming several delays, the Ocean View Housing Project – one of ten Human Settlement Projects approved by the Department of Human Settlements in 2009 – is set to recommence with renewed vigour at a combined cost of R144.2 million.

Kouga Executive Mayor, Hattingh Bornman, said, “As Kouga Municipality, we are thrilled about the recommencement of the project. This marks a significant milestone for our community, and we are eager to deliver quality housing to our residents.”

Housing project

The project will see the construction of 568 houses at a cost of R94.5 million, while the bulk infrastructure – including sewer, water, and electricity – was installed at a cost of R50 million in 2021, ensuring the necessary foundational services are in place for 1 186 sites.

Some 100 of these houses will be constructed by local Small, Medium, and Micro Enterprises (SMMEs) at a total monetary value of R16.6 million.

“Engaging local SMMEs is crucial,” said Bornman. “It not only accelerates the housing project but also stimulates our local economy by creating jobs and opportunities for small businesses.”

Delays and future phases

The project initially encountered delays due to a dispute between the Department of Human Settlements and the appointed contractor, leading to the contract’s termination early this year.

Despite these setbacks, the project is back on track and encompasses phases one and two, marking it as a multi-year endeavor.

The construction phases will be implemented in stages, with a funding application for phase three set to begin in the new financial year starting 1 April 2025.

“While the delays were unfortunate, we are delighted that the issues are resolved, and we are committed to ensuring smooth progress moving forward. Our goal is to see this project through to completion without further interruptions,” said Bornman.

The first phase of the project will prioritise disabled and elderly beneficiaries. Subsequent phases will cater to all approved beneficiaries listed on the Housing Subsidy Portal.

“While the municipality is not tasked with constructing houses, we are committed to advocating for adequate housing throughout the region,” said Bornman. “Enhancing informal settlements and guaranteeing a dignified life for all residents remains a central focus for us, regardless of whether it falls directly within our jurisdiction.

“The project is about more than just buildings; it is about creating a supportive and inclusive community.”