South Africa’s Eastern Cape province, with its bio-diversity and malaria free status, continues to attract strong demand for game farms, not only among overseas investors, but increasingly also South African buyers, according to Pam Golding Properties (PGP), the country’s largest residential property group.
Greg Rippon, farm agent of PGP’s Grahamstown franchise office, on Tuesday said there had been increasing interest in game farms from local investors, with 50% of his recent sales of such properties to South Africans.
“South African investors have seen the huge success of eco-tourism in the region and the potential it offers them,” he observed. “Our area boasts not only the Big Five, but also shark and whale watching, and scenic coastal locations, too.
“Following on the extension of the Greater Addo Elephant Park to become a mega-park, an increasing number of local farmers are pooling their land to form private nature reserves.”
Rippon said that while farms in his area are available — priced between R800 and R3 000 per hectare — due to the strong demand prices have increased by about R500 per hectare over the past year (2002). Farms purchased by local investors were generally in the region of R500 000 to R3-million.
“The lower priced farms are now hard to find, with those in the R1 000 to R1 500 per hectare price bracket either sold or selling rapidly, and with those at the top end in the region of R2 000 to R3 000 per hectare now also selling well,” he added.
Michael Wilmot, of PGP’s franchise office at Kenton-on-Sea, said ultimately Addo was expected to incorporate some 372 000 hectares in total, extending right down to the coast at nearby Cannon Rocks.
“The burgeoning growth of the game farm industry and eco-tourism is undoubtedly having positive spin-offs for our residential property market in general, with homes in Kenton-on-Sea in demand, and with developers far more active in the area. Capital values are also appreciating substantially,” he noted.
Bill Fowlds, PGP’s farming specialist in the Eastern Cape, said a growing number of farmers were converting their land from cattle, sheep and agricultural uses to that of game farming in order to meet the growing demand.
According to Fowlds, the bulk of the foreign buyers spend between R1 and R2-million investing in game farms for their own private use and to appreciate the game for its natural beauty.
“Often they visit the game farms as tourists and then decide to buy their own small piece of the African bush,” he explained. “The ongoing success of this area is underpinned by the tremendous popularity of Addo, as well as private reserves such as Shamwari — which recently joined forces with Bayethe — as well as Kwande, Amakhala, Kariega Park, River Bend, Hopewell and Hillside. – I-Net Bridge