select
|

Sustained increase in residential property sales a powerful factor in maintaining economic and social stability

The sustained upswing in the South African residential property market is creating stability and optimism in an environment of investment uncertainty in the economy, related to the volatility of the rand against world currencies, and fluctuations in the stock market.


Marketed by Pam Golding Properties at R30 million, timeless design and minimalistic style are the keynotes of this light and spacious home in Fresnaye on Cape Town’s sought after Atlantic Seaboard coastline. With panoramic ocean views, high ceilings and double volume spaces, vast glass sliding doors open onto an expansive pool deck which flows from open plan living rooms, making this luxury home ideal for entertaining and champagne sunsets. Accommodation includes seven bedrooms and four bathrooms, three reception rooms, staff quarters and garaging for two cars.
 
“It’s not unusual for property to take over as a primary area of investment when other options appear unpredictable,” says Dr Andrew Golding, CE of the Pam Golding Property group. “Residential property offers strong incentives for investors, with capital growth being the primary attraction and a reliable rental return another.
 
“Some remarkable increases in home sales volumes and value  - over 25% in ‘hot spots’ within our national network of sales offices - are a strong indicator of a swing to residential property investment. While the top end of the market has been inclined to lead the trend, it is closely followed by medium and lower priced properties. We believe this is a trend that will continue for the foreseeable future.”
 
Laurie Wener, MD of Pam Golding Properties (PGP) in the Western Cape metro region says that a by-product of home ownership is social stability. “It’s a long-held and well-supported belief that people who own their homes have a stronger sense of security and social responsibility. Home ownership is and always has been a driving motivation in South Africa.
 
“As a province with a high per capita home ownership among individuals over 40, the Western Cape is also largely a socially stable community. Home ownership is a major factor in creating and sustaining a viable middle class, the cornerstone of a healthy economy,” she said.
 
The region continues to be, in terms of top and lower end property prices, a Cape of contrasts, with recorded sales of over R100 million on the Atlantic Seaboard  and R70 million in Southern Suburbs for  single dwellings, yet on the other hand, comfortable, attractive homes for sale around R1 million.
 
There is, says Wener, still a big head of steam in the Cape residential property market, which shows no sign of topping out.  According to market statistics, listing prices at the top end of the Clifton market for instance, are closer by 12% to being met than in 2013, when the average listing price in the suburb was R13 868 276 and the selling prices were 20% less. To date in 2014, the average selling price in Clifton is R17 541 481 - only 8% less than listing price, representing an average price, year on year which is 26.5% higher than last year.
 
Buyers at the top end of the market are also to be found investing in lower priced properties such as flats and town houses – very often for occupation by their student children, ageing parents or even in some cases, employees.
 
Agents have reported the sale of a 135sqm Sea Point apartment for R200 000 more than its asking price of R3.35m, within one day of it having been listed.
 
“The market has its problems right now – but they are not about selling prices or demand. The real problem, resulting from years of caution in the property development industry, is a serious shortage of stock,” says Wener.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 24 Nov 2017
      Demand for secure estate living in Hout Bay has risen sharply in recent years, precipitating a spike in development with estate homes now accounting for 20.24% of the property landscape with the launch of an exclusive new gated development on 26 November adding 20 more units to the existing 1250 estate homes.
    • 24 Nov 2017
      There are some things that money can’t buy – spectacular views from Mouille Point to the V&A Waterfront and a trendy and lively neighbourhood that encapsulates the very best of the Cape Town lifestyle.
    • 24 Nov 2017
      Tshwane’s four-bedroom Mayoral mansion, nestled among ambassadorial residences in the upmarket suburb of Muckleneuk, fetched R5.1 million after spirited bidding at High Street Auctions’ final sale of the year.
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK