The unabated coastal semigration trend, intensified by the shift to remote-working caused by pandemic lockdowns, has opened up the property development market to cater for more permanent residents in what have previously been traditional holiday towns.
This, as well as Knysna’s buoyant holiday accommodation market, has opened up an exceptional opportunity for Signatura, one of South Africa’s preeminent property developers, to build Seahorse, only a few hundred metres from the Knysna Marina and Thesen Island.
A Garden Route First for Preeminent Developers
Seahorse is the first Garden Route development to be offered by Signatura who have capitalised on the popularity of the Western Cape and in particular, Cape Town, for decades. It is also a first for EasyProperties investors who have hoped for a stake in the world-class holiday destination, renowned for its extreme natural beauty and village charm, of Knysna.
Relief for the Under-Supplied Sectional Title Sector
According to EasyProperties CEO, Rupert Finnemore, the 36-unit Seahorse development, is expected to add relief to an under-catered sector of the market that currently only comprises 11,5% of sectional title stock. “Besides the outstanding location opportunity, the fact that there is very little sectional title stock in Knysna to cater to its booming holiday market, makes Seahorse a very important property investment consideration,” says Finnemore.
Key features of the development, which include inverters, Wi-Fi, security, a heated sundeck and generous balconies, as well as its walking-distance location to the lagoon and village will cater to the discerning tenant of today’s most essential needs.
A Strong Investment Case
Comprising 35 one and two-bedroom apartments over three storeys including ground floor parking, the lifestyle and location of Seahorse, is expected to achieve a net yield of 8,59% and internal rate of return of 9,4% for its short stay appeal.
The 7% bulk discount for the seven units reserved for EasyProperties investors, combined with the Section13sex tax benefits achieved, provides potential investors with the ultimate Knysna residential development at a significantly reduced price. Rental for the EasyProperties units will be managed by highly-regarded, local, short-stay Air BnB operators.
According to Finnemore, the overall investment case for Seahorse is extremely strong and offers promising prospects for both capital appreciation and rental yield.
One of the Most Loved Tourism Destinations in the World
“Even without the semigration trend that has added to Knysna’s population, adding to the dearth of sectional title stock in a town that averages 1.2 million local and international visitors per year and was ranked number 19 on the Tourism Sentiment Index 100 Most Loved Destinations Around the World for 2021, makes perfect sense,” says Finnemore.
In conclusion, considering the semigration trend and steady tourism growth of Knysna, which has been further bolstered in recent years by popular events like the Knysna Oyster Festival, Knysna Marathon, The Pink Loerie Mardi Gras and Arts Festival and The Simola Hillclimb, it seems that the time is now to invest in Knysna property.
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