select
|

Big-ticket buys show market is turning

Sales of luxury properties, so conspicuous by their general absence last year, have now definitely made a comeback in the Johannesburg market.


That's the word from Lew Geffen, chairman of Sotheby's International Realty in SA, who says the number of "big ticket" sales over R4m made by his Johannesburg offices over the past six months is 21% up on the number of such properties sold in the first half of last year.


"And much of the additional activity has taken place in the past couple of months, which have seen the especially notable sales of a property in Bryanston for R50m and another in Sandhurst for R35m.


"We have also seen a 45% increase in the total value of luxury properties sold over the past six months, compared with the same period of 2008, with the average unit price in this category rising from R5,94m to R7,14m."


Even better news, Geffen says, is that the recent surge in big ticket sales can mostly be ascribed to those shrewd buyers "who are always the first to see a good opportunity and are comfortable that the market is currently at or near the bottom and will start to turn upwards within a few months."


Sales at the top end of the market, he notes, are usually not directly related to a decline in interest rates such as seen since December, but rather a function of improving economic sentiment. "Many big ticket purchases are made with cash, so buyers don't really have to worry about home loan interest rates. They tend to be much more influenced by an increase in business confidence and medium to long-term economic and employment prospects that will drive future housing demand.


"I have been through five previous recessions in the real estate business and have seen this type of buyer correctly anticipate the market recovery every time."


Indeed, he notes, this may already be getting under way in Johannesburg, with the overall sales volumes being logged by his offices currently 13 percent ahead of the volumes recorded at this time last year, and turnover up a whopping 58%.


"I am not suggesting, of course, that prices across the board will immediately start rising. The main reason why the market is stabilising and unit sales increasing is because prices have come down substantially and buyers are making an effort to get in near the bottom. Sellers who think the halcyon days are back again are mistaken as prices are likely to remain at these levels for some time to come."


ISSUED BY

SOTHEBY'S INTERNATIONAL REALTY



  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 21 Jun 2018
      Anyone who’s ever been involved in a building project that’s gone wrong will appreciate the importance of adequate insurance cover in the construction industry.
    • 21 Jun 2018
      A recent news story about a blind tenant caught in a legal battle with his body corporate over letters and notices he was unable to read and consequently comply with has raised the question: what are the legal obligations for landlords with disabled tenants?
    • 21 Jun 2018
      A trend that’s taken the world by storm in recent years is that of hygge (pronounced: hue-guh), a Danish concept that is about creating intimacy, connecting with loved ones and taking pleasure in small, ordinary things.
    • 20 Jun 2018
      Buying or selling real estate isn’t as easy as it is portrayed sometimes, especially if there is a death of a party during the transaction which can make it awkward, tricky and inconvenient.
    • 20 Jun 2018
      With interest rates remaining at historic lows and banks continuing to compete for mortgage finance business, first-time buyers with funds at their disposal are currently well-placed to gain that initial foothold on the property ladder, particularly in the light of the slightly lower growth rates currently experienced in residential property values.
    • 20 Jun 2018
      The average size of bond granted in SA has grown 7,7% in the past 12 months to R934 000, according to BetterBond, the country’s biggest bond originator.
    • 19 Jun 2018
      In the current market, letting out a property can be a good option as rental demand remains strong, especially in the northern suburbs of Johannesburg. This is according to Chris Renecle, MD of Renprop. However he says that before homeowners let their property out, there are five key points they should make sure are covered before they market the property for rent and sign any lease agreements.
    • 19 Jun 2018
      The Capetonian dream is to live by the ocean with the iconic mountain making an appearance somewhere in the horizon. But, that dream comes with a hefty price tag that many simply cannot afford. But, should you venture some kilometres out of the city centre, entirely new realms of beachside bliss await you …
        
    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