Coastal landlords under pressure

Many coastal landlords are under pressure, estate agents confirm.

This Christmas, many people have opted for shorter holidays and will not be spending as much either, said Katrina Olwagen, rental agent for Chas Everitt International Property Group in Goose Valley, near Plettenberg Bay.

Bookings are now for 10 and 15 days, though she will accept nine-day stays too.

Olwagen said there is still a lot of stock available. Holiday-makers are mainly opting for sea views.

A sea-view is priced from R1 500 a day while other accommodation generally costs  from R1 000 to R1 800 a day - depending on its location.

The week between Christmas and New Year is the busiest any year and 2008 is no different given the current economic situation, said Olwagen.

 "We are fairly confident of a good holiday season but holiday makers would not spend as much as they used too," said Olwagen. Holidays are expected to be shorter, too.

She said with the tough times in the economy and the property market, many people are expected to rather spend money on their bond repayments and paying off short-term debt than on holidays.

A shift in the holiday rental market has been relaxing the policies on the minimum number of days for a booking.

According to Re/Max of Southern Africa, Christmas holiday lettings are traditionally a money printing press for coastal landlords - but they are being knocked by current market conditions.

Garth Wearing, broker and manager of Remax Coastal, said local holiday market demand is at its slowest in years.

He said Knysna's normal peak holiday season from December 15 to January 6 has shrunk  - and the town is now set to be busiest from December 26 to January 3.

Although visits may have be shorter, rentals remain pretty firmly in line with those of last year.

In Knysna's case, holiday rentals range from R1 000 to R2 500 per night. Wearing said holiday makers have been adjusting to the tighter economic conditions by booking for shorter visits.

In Umhlanga, however, Grant Burgoyne from RealNet said average bookings are still two weeks and even more as families enjoy spending time in the area.

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just maybe, they r not booking via agents - going direct to get better deal zzzzzzzzzzzzzzzzzzzzzzz by GungetsTuft on December 15 2008, 13:47 Find this comment inappropriate? Report it

challets during hollidays most people book through word of mouth especially on the kzn coast but still looking for bargains. by stormchaser on December 15 2008, 21:45 Find this comment inappropriate? Report it

FULLY BOOKED FOR HOLIDAY SEASON! Maybe so in defferent areas, but my snazy spot next to the Natal coast - St Michaels on sea - (incl sea view), is fully booked from 15 November 2008 all the way through to 10 January 2009 - by different families from all over the country, and if I owned . .more 10 more townhouses with a sea view, that would be rented out as well.... Thanks to "Where to stay" The question I would raise would be: Do investors "overprice" holiday accommodation to make up for higher bond re-payments, and cause themselves to be priced out of affordability for the average, working class holiday goers? Ask yourself these questions - Are you listed with the right people? Is your accommodation fairly priced? No further comment your honor. . .less by Investor on December 18 2008, 18:53 Find this comment inappropriate? Report it

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