Plett’s Pricey Property Problem: Value vs Reality

3 Key Takeaways

• 75% of Plett homes are valued above R3m, but high prices limit local affordability.
• Remote workers and retirees are driving luxury demand in coastal estates.
• Most sellers don't get asking price overpricing stalls sales beyond 3 months.

Analysis of the Plett Market

Plettenberg Bay’s property market is booming in value, but increasingly misaligned with reality. With an average property value of R4.9 million, and 7% of homes exceeding R10 million, Plett positions itself as a premium coastal town dominated by retirement, leisure, and remote-working professionals.

Hayley Ivins-Downes, Managing Executive Real Estate, Lightstone Property, said there were 5 700 properties outside of the townships, at an average value of R4.9m, and almost 40% had been bought within the last five years as Plett’s popularity increased with remote workers, retirees, holidaymakers and working people from other provinces searching for a more relaxed lifestyle.‍

Value of properties in Plettenberg Bay

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However, this trend comes with challenges

• Affordability gap: The town’s working class, including hospitality, retail, and municipal employees face a housing crisis, with limited formal stock for those earning under R26,000/month.
• Age profile: More than 50% of property owners are over 60, and a third own properties elsewhere, indicating wealth concentration and second-home ownership driving prices.
• Sales vs expectations: Overpricing is common. Data shows Plett has the lowest price-to-asking ratio on the Garden Route. Homes listed over 3 months drop from 91% to 82% of asking price on average.

Just as Plett had a high proportion of homes valued above R3m, it also had a higher proportion of homes (36%) in Estates and Sectional Schemes (21%) than the national averages of 18% (Estates) and 18.5% (Sectional Schemes) for properties valued at more than R1m. Freehold homes accounted for 43% of properties in the town.

The average Sectional Scheme values were just under R3m, with the average freehold values being R6.5m when inside Estates and R5m outside Estates.

Of the Estates, Ivins-Downes said Whale Rock Ridge had the highest average value at nearly R11.5m (see table below), followed by Brackenridge Nature Estate (R8.2m) and Schoongezicht Country Estate at R5.6m.

Average value of properties within selected Estates

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House prices were generally higher in a suburb which had a view of the ocean or was close to it. Houses in Keurbooms Lagoon had the highest average value, although there were relatively few properties.

Lower Central Plett was next in terms of average property value, while Formosa and Robberg Ridge had the lowest property values of the 21 suburbs analysed. Ivins-Downes said most properties were to be found in Seaside Longships, where the average value was just above R5.3m.

Suburb values in Plettenberg Bay

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Market Comparisons: How Plett Stacks Up

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Notable patterns in the market

• Plett commands the highest values but sees the largest disconnect between asking and achieved prices.
• Mossel Bay and George show stronger price resilience and more realistic seller expectations.
• Knysna, Plett’s closest market, is better aligned and has more consistent sales results.

Ivins-Downes said if Plett properties didn’t sell within the first three months on the market, the drop off in price paid relative to asking price could be significant, as the graph below showed.

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“The average price paid on transactions concluded within a month was 91% of the asking price, but this dropped to 82% if sales took six to 12 months to conclude. By comparison, George, Jeffreys Bay, Mossel Bay and Sedgefield all achieved a better average price on transactions in the first month being on the market, while neighbour Knysna’s average was the same as Plett’s”, she said.‍

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Price achieved as % of original asking price

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