Whale Rock consists of nine different and unique residential developments and is the most impressive and bold real estate development ever undertaken in Plettenberg Bay.
The international developers have new decided to release their last remaining stands with extended building time limits.

Whale Rock posted a record sales: in November and the first 3 weeks of December they posted a total sales of 14.708.009; making it without doubt the best selling development in Plettenberg Bay.

The last stands are selling very quickly, so don’t delay and contact one of the 3 mandated agencies today:
Chas Everitt – Anton Nell – Tel: 044 533 5250
Engel & Völkers – Graham Theobald – Tel: 044 533 6440
Leapfrog – Pam Porter – Tel: 044 533 6741

The developers of the world class Whale Rock area of Plettenberg Bay recently announced the appointment of Engel & Völkers, Chas Everitt and the Leapfrog Property Group to market the remaining stands in Whale Rock Ridge, Whale Rock Resort and Whale Rock Verde. The prices represent outstanding value and investment opportunities like this will definitely never be repeated.

All three estates have been developed to exceptional standards with brick paved roads, landscaping and electrified security perimeter fencing and security gates. Whale Rock Ridge is one of the premier Private Estates in Plett with spectacular views of Robberg and the bay. Over 50 houses have already been built on the estate and a tennis court has recently been added.

Whale Rock Resort lies in the protected valley below the Ridge and is already substantially developed with many houses and apartment blocks already occupied. The Resort is within walking distance to Robberg Beach and offers a swimming pool, a putting green and a gym. The available stands in this estate are, without doubt, the best value in the area.

Whale Rock Verde lies between the wetlands and the Resort with views over the vlei with Robberg Peninsula as a backdrop. The abundant bird life creates a beautiful natural ambience – a nature lover’s paradise. Only 19 stands are available.

Plettenberg Bay got featured in the New York Times; read the article here.

The NYT also supports the statement that prices are bottoming out:

Now Ms. Uys believes the market has hit bottom. “We’ve had a couple of months with good sales coming through,” she added.

Wealthier areas along the Atlantic seaboard near Cape Town have stayed relatively strong. Most buyers there do not need financing, and foreign buyers are still showing interest in Camps Bay, Clifton, and other wealthy suburbs of Cape Town, according to Ms. Uys. Luxury homes in these areas sell for 6 million to 20 million rand ($790,000 to $2.6 million). In Plettenberg Bay, however, it’s possible to find a nice house for 3 to 5 million rand ($395,000 to $660,000). In Johannesburg, Ms. Uys said, a nice house in the Westcliff area is likely to cost at least 7 million rand ($920,000).

House prices in Plettenberg Bay vary widely depending on proximity to the beach, according to Fiona Thorpe, a property consultant with Lew Geffen Sotheby’s International Realty in Plettenberg Bay and the listing agent for the house featured here. Inland vacation homes sell for around 3.5 million rand ($475,000), but beachfront can cost as much as 30 million rand ($4.05 million). Ms. Thorpe estimated that if this house had beachfront access, it would cost 10 million rand ($1.35 million) more than its current asking price.

Foreigners are not restricted from owning property in South Africa, Ms. Thorpe said, but in general the maximum amount of financing they can get is 50 percent. That said, most foreigners pay in cash.
….
Buyers pay a transfer tax, the exact amount depending on the purchase price. This house is listed at 6.5 million rand; its transfer tax would be 465,000 rand ($62,700), plus 29,000 rand ($3,900) for legal fees, 4,060 ($548) in value-added tax and another 1,000 rand ($135) in deed-transfer costs.

When foreigners sell their South African properties, Ms. Thorpe said, the government withholds about 20 percent of the sales price until all capital gains taxes are paid. Capital gains tax levels are pegged to income-tax bracket.
…

The New York Times forgets mentioning  that not all SA property transactions are subject to transfer tax; people who for example buy property in Whale Rock, pay no transfer tax.

We already reported on the FNB housing price index which for the first time showed a slow year on year rise.  Now Data from Global Property Guide also reports that during the period July – September the average house price in South Africa rose by 0,55% compared to the second quarter.

Slowly speculative buyers can get out in the South African open again, slowly.
The South African consumer index remains high at 6,4% and with electricity trariffs up by 31% in July and wahe deals accross different sectors, we don’t believe that inflation will decrease.  This will mean that Central Bank Governor Tito Mboweni doesn’t have a lot of room to further decrease the South African interest rates.  Current Repo rate is at 7,00% and prime rate at 10,50%

Last May year on year South African house price deflation was at a staggering -15%.

For the first time, the FNB House Price Index shows a renewed year-on-year (y/y) house price inflation in November.  The index rose year on year by 2%, after October’s -0,9%.

Time to buy.  However with current real prime rate doesn’t allow yet for short-term property speculation.  As FNB puts it:  “Here, we adjust prime rate with house price inflation to get to real prime rate, and although this rate is declining steadily due to improving house price inflation, at 8,5% this real prime rate remains significant. No place for speculators on a large scale just yet it would seem.”

Speculators with a longer breathe and cash at hand will slowly consider to start their hunting though.

Property 24 featured last Friday an insightful article on the South African real estate market in 2010.

Mike Flax, executive director of Redefine Properties, doesn’t see a recovery in 2010, since most people will still suffer from the job losses and expenditure cut-backs which the recession made essential.

Flas says that a general recovery of the property market is not to be seen until the end of 2010.   He predicts the recovery will be led by the residential sector.

Smart investors will be looking for reputable property at market related prices, like the few remaining Whale Rock Properties in Plettenberg Bay, which has been repriced recently to market-conform levels.

Now that all South African’s, also the most naive, realise that the residential property is really bursting, a second leak is appearing: the commercial property market is collapsing.

Read the full article in Nosweek this month.

People thought that prime apartments on the Capetonian V&A waterfront were a safe investment.
Wrong.  Dalene Visagie of Seeff, yes, the same Seeff which was shouting in April “Huisprijse sal nie daal” is literally spamming her address book with “urgent sales opportunities with +12% discounts on price reductions.  See below this 158m2 apartment in Faulconier of which the price was reduced from R7,5m to R6,6m.
Also Emelia VD Linde and Karen Miller, the once sales mavens of Seeff are now spamming their address books with massively discounted sales in Victoria and Albert.
The harsh deflationary reality of South African real estate  is slowly dripping in at Seeff.

And yes, the Reserve Bank dropped interest rates by 100 basis points today.  But this won’t stop the massive recession which is hitting SA (6,4% annualised decline in Q1 2009).  On the contrary, with the current loosening of Monetary policy and inflation targeting, an inflationary tornado could hit SA later in 2010, when oil prices surges again.  This will have a devastating devaluation effect on the South African Rand.

In April Seeff quoted in a newspaper article: “Huisprijse sal nie daal”.  We found this statement naive, lackig any solid argumentation and simply false.
And right we were, this recent article in the Mail and Guardian confirms that house prices in South Africa are further deteriorating and that prices are not to stabalise before the end of 2010.  The information is based on the FNB house price index.

Seeff: any comments?

Despite real estate agencies trying to convince you differently, real estate prices are further to drop in 2009 and only in 2010 will there be a slow improvement.
The year-to-year decline of property prices in South Africa was 15,3% and the consensus is that at leats a further 5% decline will happen in 2009:
“Price deflation for this year is thus still expected, and the FNB House Price Index average for this year is projected to decline by around 5%,” says Loos.

The SA home loan market amounts R 190 billion a year. In 2008 this activity dipped 30% and Market Beckett of Bond Choice projects this to further decrease through 2009, despite the interest rate decreases.

Dr. Johan Botha, economist of Standard Bank says: “The overall consensus from property commentators is that although SA may certainly not have seen the bottom of the curve yet.”

Saul Geffen, CEO Ooba, a mortgage bond originator, said last Friday that only last January prices went down 4,8% and confirmed this pattern will continue for the rest of 2009.