Zimbali Coastal Resort Review (The Bugle)

With the third quarter of 2012 well under way, and deeds office data having been updated, we can get a clearer picture of property market activity for the year to date. Having been in the industry long enough to understand that a sale is not a sale until transfer has been registered we use only actual transfer data in our analysis and do not consider sales which are still to be registered. The two local powerhouses of property transactions have been Zimbali Coastal Resort and Simbithi Eco-Estate. 

We will focus on Zimbali for this week. For the 2012 year to date, within Zimbali, 32 transactions have been registered to the value of R144,1m. Of these 8 sales were sectional title registrations with a gross value of R33,3m and 24 were freehold registrations (which include vacant land sales) with a gross value of R110,8m. Having progressed a little past the half way mark for the 2012 year it appears that the overall market position for 2012 could be down on the 2011 year. For the 2011 year 70 transactions were registered at a gross value of R280,8m. This was approximately 10% down from the 2010 year with 78 registrations and a gross value of 309,7m. Transaction volumes in 2011 were only 52,2% of what they were at the height of the market in 2007, when 134 transactions were registered with a gross value of R330,6m. Although the number of transactions dropped off in 2008 to 104, the value of these peaked at R378,1m. It appears that the glory days of 2006 and 2007 are a distant memory only and that it will take some time for that level of trade to return to the market.

The last four and a half years have been hard for those in the property and building industry. The result however is an industry that is more efficient and ready and willing to serve. The average value of Zimbali transfers is currently R6,775,626 which is only marginally ahead of Pearl Valley Estate in the Cape winelands with and average value of R6,772,090.  However Zimbali has over 1,200 properties whereas Pearl Valley has fewer than 550. Comparisons between flagship estates are inevitable, but should always take into account the relative size and number of properties. Current vacant land pricing in Zimbali ranges from R895,000 to R12m, and the pricing for completed homes ranges from R3,5m to R40m.