The Covid-19 pandemic has given an added boost to demand for lifestyle and hobby farms in SA as people look to re-evaluate their lifestyles and escape to the countryside.
Unlike the rest of the real estate market, prices of productive agricultural farm properties have remained largely unaffected by the pandemic, according to Seeff Property Group.
“Buyers are coming from all over the country, and apart from using the properties for weekend getaways, they often add guest accommodation to earn an extra rental income from visitors and tourists,” said Seeff chair Samuel Seeff.
Seeff, one of the most established real estate companies in Southern Africa, said destination weddings and events, as well as hobby farming — a growing trend — are fuelling demand for these properties in the Western Cape.
“Buyers often look for the opportunity for small-scale farming such as vegetables and even boutique wine and olives or goats for milk and cheese,” said Seeff, adding that one can enjoy the life of farming without the huge commitment that a commercial operation requires. Some buyers retain their city jobs and businesses and do this as a side business with a manager on the farm to take care of everyday operations.
In the Winelands/Boland area, for example, demand for lifestyle farms is high, especially those priced below R10m. “Supply is limited which presents good opportunities for sellers.”
Seeff said, however, that in the past two years, a number of farms have sold for R11m-R27m in the Tulbagh and Wolseley area.
It is possible to buy a small farm for as little as R5m all the way up to more than R20m for a top-end olive farm on the slopes of the Witzenberg Mountains with guest cottages, extensive housing and infrastructure, sufficient water supply and an irrigation system.
Guest farms priced from R4.5m-R40m in the Overberg region are popular with buyers due to tourism. These properties offer a mix of productive farming and guest and venue facilities.
The areas that house these properties boast excellent infrastructure with housing, sheds, stables, camps and kraals. Most guest facilities include cottages and wedding and events venues that can accommodate up to 150 people.
Income producing Bonnievale farms in the Breede River Valley, a popular weekend getaway location, offers a mix of farms ranging from fruit and wine to dairy products. Seeff said apart from productive farms, lifestyle and hobby farms are popular with buyers in this region. Prices range from R3.5m for a small property to R24m for a productive fruit, wine and pomegranate farm that offers a high long-term return on investment. Many of these properties have rental opportunities for added income.
Seeff said there is growing demand for wine and guest farms in Hermanus, home to wine farms such as Kleinmond and Bot River. Prices are high, with prices near R45m for properties in Kleinmond and Bot River.
“With the Western Cape growing in popularity due to its lifestyle offerings, farm properties will continue to feature prominently on buyers’ lists,” said Seeff.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.