While still early days, the Total gas-find off the coast of Mossel Bay is set to be a major boost for the Garden Route property market.
According to Stephen Larkin, an expert in Southern Africa oil and gas exploration, the discovery could hold one billion barrels of gas-condensate which will bring at least R1 trillion to the SA economy over the next 20 years.
He said further that Southern Africa had become the hottest destination for hydrocarbon exploration in the world and the economic benefits of this catalytic find could be significant.
“For the Garden Route, this would bring huge opportunity and skills programs to assist with upliftment which will job opportunities that will require housing and infrastructure to assist with the demand,” said Pieter Jordaan, principal of Seeff George.
“Early bird investors will reap the benefits of an already fast-growing area.”
He added that the pre-planning stage is vital. This will include infrastructure, sewerage plants, land for housing and commercial activities, schools, hospitals and most of all water availability.
“George offers a diverse and well-developed property market that caters for every buyer demographic and price range,” he said.
“Older sectional title property can for example still be found from around R650,00 and houses from around R900,000, but there are plenty of modern developments and estates where you can find stunning family and golf estate houses, generally in the R2 million-R6 million range to about R8 million for a sea view property.”
“George also has a busy rental market with tenants needing accommodation across a broad spectrum, from apartments and townhouses to luxury homes in estates where landlords can achieve rental returns of up to R20,000-R30,000/month. There is no doubt that the gas project will further boost this market.”
Similar benefits are expected to be seen in the Mossel Bay area, said Seeff’s Kaaiman Schutte.
He said that Seeff has already seen year-on-year sales growth of 20% in January 2019, the best sales month in four years.
“The potential boost to Petro SA and the local economy will stimulate an even bigger demand for rental housing and also attract more buyers to the property market.
“It is a great time to invest here while prices are still very affordable. You can for example still find sectional title property from R850,000 and houses from R1.5 million with luxury houses still available in the R2.5 million -R5.5 million range,” Schutte said.