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

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.

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.

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%

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.

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.

Read the full article in Nosweek this month.

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.

Seeff: any comments?