Val de Vie Wine & Polo Estate - property sales in 2012 - an analysis of the property market

Val de Vie Wine & Polo Estate (between Paarl and Franschoek) has during 2012 experience a 43 % increase in year-on-year sales transaction relative to 2011. A relative shortage of the well located and bigger sized erfs is experienced - pointing to an eminent price shift in the estate’s property market.

For the period 1 December 2011 to 30 November 2012, total property sales in Val de Vie consisted of 84 own title (74 erfs and 10 houses) and 11 sectional title (horse stables) transactions to the value of R92,904 million and R1,26 million respectively. For the same periods during 2010 and 2011, respectively 61 and 65 sales transactions to the value of R62,769 and R72,865 million were concluded – up from 19 transactions in 2009 to the value of R22,99 million.

Average sales prices obtain have remained fairly stable since 2010 – increasing from R1,029 million to R1,106 million. This however not a true reflection of property prices on the estate – as Val de Vie “is only 5 years old” and by far the majority of property transactions during this period have been erfs. According to Lightstone, the present average valuation for Val de Vie properties is R3,79 million – ranking it as the 373rd most expensive estate in South Africa which is “on par” pricewise with Oubaai Golf Estate (George) and Sandhurst Ext 4 (Johannesburg). The average value of Val de Vie property is however set to dramatically increase during the next few years – as more and more luxury homes are being developed on the vacant erfs.

The available erfs in the market has during the last few months dropped quite markedly – especially the bigger and better located erfs. Val de Vie consist of 567 erfs spread between the vineyard and open areas over an area of 1 771 384 sq. metres.

Maureen de Waal (resident agent affiliated to CCH) has during the last 4 months achieved sales which has already “corrected the historical price levels” on the estate – i.e. a house for R5,5 million (at more than R13 000 per square meter) and a house for R11,25 million (top sales price to be achieved up to now in the estate).

Maureen has over the last 3 years achieved the biggest market share on Val de Vie Estate, managing to capture a 38% share of total 2012 sales – i.e. selling 36 of the 94 sales transactions for the period. For more information about Val de Vie, please contact Maureen at maureenk@lantic.net or at 082 449 0900.

Article By: www.cch.co.za

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