Saint-Tropez : an exception to the rule
The past few years have seen a change in the market’s structure…
Everyone thought that prices on the favourite peninsula of the stars had reached their peak with the arrival of the euro… Wrong ! The past few years have seen new records and a fundamental change in the market’s structure…
“The property market is going through a real upheaval,” reveals Michel Gerstenhaber of the Etude MG. “For the past eight months, the middle class has completely disappeared.” Which means, neither offers nor demand for properties around 1 million ? at Saint-Tropez. Clients are however present, but ones who are focussing on the top end of the market, ie. from 3 to 40 million €, this last price concerning highly sought-after houses at the water’s edge. It seems that those with lower budgets, finding no solution, have abandoned the Place des Lices for the more affordable marinas of Port Grimaud, Marine de Cogolin and Port Cogolin, where there is an active market for fishermen’s houses with boat moorings. Victims of their own success, even these have risen 40 % over the past two years and now cost from 700,000 to 4 million €.
1.5 million € is rock-bottom for a 2-bedroomed flat on the port ; the same apartment without sea view costs 600,000 €. As few are available for sale, they are snapped up very quickly. Danielle Olivon of Panoramer has drawn up a price grid : prices per sq. metre on the port range from 12,000 to 15,000 €, from 6,500 to 7,000 € in the old part of town and also in apartment blocks with pools and parking places, situated at the entrance to the town. A clientele for large, prestigious apartments apparently exists, but the latter are few and far between.
The phenomenon mentioned above more particularly affects the market for individual residences. Michel Gerstenhaber points out that, since 2003, bricks and mortar in Saint-Tropez have been the subject of relentless speculation. All the large properties seem to have been sold this winter. And in a sector marked by rarity, prices inevitably reach new heights. In the last two years, they have risen 40 %, and 60 % since the introduction of the euro. Always in high demand, the Capon and Pinet neighbourhoods comprise a residential area oriented towards the sea, facing south-east and close to the village. As well as easier traffic, a luxury in Saint-Tropez, they offer large grounds and are hardly ever overlooked. A house of 120 m2 in poor condition with grounds of 1,000 m2 sold recently for 1.5 million € ; the average is close on 10 million €. Buyers appreciate Canoubier and Salin for their proximity to the beaches and town centre. Here, count on paying from 5 to 20 million ?, depending on the villa. This is where you’ll find Les Parcs de Saint-Tropez. This famous gated and guarded park attracts a mostly north-European clientele, ready to pay at least 7 million ?. Other estates, also within easy reach of the Mediterranean, deserve a mention : Capilla and Les Treilles de la Moutte. The second and third addresses won’t alter the price of the property, but the first makes a difference of 20 %.
“Just recently, Sinopolis, which has raised no interest for many long years, has begun to rouse the curiosity of British clients,” says Danielle Olivon. Three reasons for that : sublime and lively sea views, good value for money and the proximity of the Gassin golf-course. The only downside is the traffic, extremely dense in summer. Saint-Tropez is not affected by national crises, but feels the impact of worldwide developments. To understand why, one simply has to look at its client profile. At the top end of the market, clients are 90 % foreign. Present for the past two years, the Russians have the strongest buying power, followed in descending order by the Belgians, English, Scandinavians and French. Jean-Luc Beaujean of ST Properties goes even further : “Up until 1992-93, the market was totally red-white-and-blue. It became truly international as from the year 2000. Today, the French account for only half of Saint-Tropez’s home-owners”. Mr Beaujean sees several disadvantages in local residents moving to Grimaud or Cogolin : for example, while neighbouring villages have built two childcare nurseries, our “exception to the rule” now lives in tune to the seasons. This vocation as a summer resort places Saint-Tropez in a situation comparable to the world’s leading property markets and, naturally, levelling starts at the top. Furthermore, local estate agents haven’t hesitated to use the services of foreign networks. “Changes are also visible for seasonal rentals,” observes Jean-Luc Beaujean.
Just like the new periods observed on the Côte d’Azur, lengths of stays tend to be shorter. Owners who once refused to hear of it now even accept the principle of 1-week rentals. And while hotels are full in July and August, the rental market posts an occupancy rate close to 70 %. A 4-bedroomed villa with impeccable appointments and situated on an estate will cost on average 45,000 € per month, 30,000 € in a less sought-after area. An apartment is considered as competing directly with hotels : to find favour with the clientele, it has to offer a financial advantage. Far from being completely homogeneous, the rental market in Saint-Tropez attracts French and Italian holiday-makers looking for smaller surface areas, Dutch and Scandinavian clients with their sights on more exclusive properties.
High prices should not, however, hide the reality of Saint-Tropez. Its surroundings are countrified and even wild, varied and authentic. A road winding through the vineyards will suddenly descend towards a deserted beach of white sand. There are no unsightly urban areas or concrete jungles in this enchanting region. Danielle Olivon stresses up-coming plans which, like policies currently enacted in Ramatuelle, protect certain wooded areas. A Draconian measure which will ensure that Saint-Tropez retains its natural beauty. As for its summertime festivities, they are as eccentric as ever. And for fans of shopping, games of “pétanque” or endless rounds of aperitifs, this is still the place to be.
Despite a difficult start to 2006 followed by a noticeable pick-up after mid-February, Michel Gerstenhaber is looking to the future quite serenely. In Europe, Saint-Tropez doesn’t have any serious competitors. Those who abandoned this peninsula for Ibiza have returned to their first love. “And perhaps there’s a lot to look forward to from new clienteles, from China and India ?”…
Par Laetitia Rossi - Photos Edith Andreotta
