Property sales in George started an upward trend in September last year, which resulted in the best December sales figures in many years for the local Chas Everitt International office, and good results since then, says owner Pieter van Rensburg.

“December was a record sales month and it was interesting to note that most activity came from local buyers in what many regard as primarily a holiday destination. These buyers started coming out of their shells at the start of spring with many home owners upgrading and tenants buying first homes.

“However, there was also an increase in buyers from other parts of the country, notably Cape Town and Gauteng, who were either planning to relocate their families or buying holiday properties. Residential properties priced at between R450 000 and about R1m are most popular.”

Van Rensburg says local buyers believe the property market has reached, if not passed, a turning point, and expect prices to start rising in the near future.

“Expatriates returning to South Africa from Australia and the UK are also active right now, as are investors who want apartments to let out, as they can now achieve returns of between 7% and 8% on such units. This is a 50% improvement on the return that was average just a few months ago.”

One- or two-bedroom apartments in George now cost from R450 000 to R650 000, he says, and monthly rentals range between R2 500 and R4 000.

Van Rensburg says the confidence in the George property market evidenced by the increase in residential sales is underscored by renewed commercial activity.

“Our office sold a commercial building worth R15m in the centre of town in December after a long quiet period in this sector. And, as in the residential market, all indications are that the momentum will be sustained in the months to come,” says van Rensburg.