Tough year for J’Bay property market

Jeffreys Bay has not escaped the global economic downturn and the local property market is feeling the effects.

Estate agents report that there were many interested buyers in town during the holiday season but that not many sales emanated from the enquiries.

Reasons given for this state of affairs were banks still not giving bonds and also buyers coming with offers that were simply unrealistic. Sellers are often still wanting prices for their properties that do not match market expectations.

Houses are on the market for more than four months and up to 90 % of sellers are being forced to drop their asking price by up to 13 %, according to First National Bank property sector strategist John Loos.

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He said it was a buyers’ market, with prices having declined by about 17 % in real terms since February 2008.

“We believe that indications emanating from the latest results of the FNB Estate Agent Survey suggest that the residential market still has some way to go before it reaches that ‘holy grail’ where oversupplies disappear and the market can finally be said to be realistically priced.”

There are some realistically priced properties in the Jeffreys Bay market and Marina Martinique is holding its own. Discerning buyers can find good properties that offer a sound investment for the future.

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