Property activity picks up

More activity in the property market is evident in several parts of the country – but the reasons are as diverse as the areas, agents say.
The RealNet property group reports that some of its franchises are recording increases in sales of up to 300%, while other franchises are now recruiting more estate agents to cope with demand.
Riëtte Oosthuizen of RealNet Centurion notes that there has been an increase in sales of 300% since the beginning of the year but ascribes the jump to refined marketing principles.
 “There are still buyers in the current tough economic climate but the challenge is to find the right property for each buyer. We have refined our marketing approach to do just that and although it is still difficult to obtain bond finance, buyers are definitely showing more confidence in the market,” she says. The agency is doubling the number of its agents from six to 12.
Another RealNet franchise that has dramatically increased sales this year is the Garden Route office serving the greater George area. Owner Gerhard Roux reports an increase in sales of 200% since last November. “But this is because prices have declined sharply – in my opinion this is the first time in five years that local properties have been priced realistically,” he says.
“The spike in sales is primarily due to a new realism in the market as sellers start realising that over-priced properties simply do not find buyers. And in spite of the increased activity, there is still some pent-up demand as many buyers are waiting for further price declines.”
Sales at the RealNet Select office in the Western Cape have doubled since January and owner Astrid Smith says this is also largely due to discounted prices. “Sellers generally list at higher prices, but are willing to negotiate with buyers, leading to discounts of up to 20%.
“Speculators are active in the market and are buying properties at auctions at bargain prices. They then re-list such properties at a profit, but still at a price lower than general asking prices. First-time buyers are attracted by these discounts and are entering the market if they can obtain finance.”
Rob Allan of the Randburg office also reports increased interest among buyers. “Three factors seem to contribute. In the first place prices seem to be bottoming out and buyers are targeting properties with market-related prices, of which there is a good supply.
“Secondly, the approaching Soccer World Cup has provided a sudden impetus and some investors have obviously decided now is the time to get into the market. And thirdly, buyers seem encouraged by signs that the banks, which clamped up in the face of the credit crunch, are slowly relaxing their strict lending criteria.”
Allan is in the process of appointing additional agents to cope with the spike in demand. “Our turnover justifies the appointment of an additional 14 agents to bring our complement of agents back in line with the number we fielded before the market took a dip last year.”
Issued by RealNet

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 19 Feb 2018
      Possibly one of the biggest sources of contention between landlords and tenants surrounds the rental deposit. “Most tenants rely on getting their rental deposits back when moving, so that they can use it to pay a deposit on their new home. Having it withheld or even having large amounts deducted can lead to a lot of distress,” explains Bruce Swain, CEO of Leapfrog Property Group.
    • 19 Feb 2018
      Situated approximately halfway between Johannesburg and Pretoria, Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of the major business hubs in the country with major pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
    • 19 Feb 2018
      The PayProp Rental Index Annual Review of 2017 shows that the rental market suffered from much volatility during the year. It kicked off with rental growth spiking in January with weighted year-on-year growth (YoY) growth peaking at 8.3% before dropping to 6.34% in July, dipping down to less than 5% in November and then experiencing a slight uptick at 5.75% in December.
    • 19 Feb 2018
      While most homes in cluster complexes, estates and other gated communities come with at least one garage or carport, residents would often like additional permanent parking or storage areas for things like trailers, bikes, boats and caravans.
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
    • 15 Feb 2018
      One positive consequence of the financial crash in 2008 was the rise in consumerism, especially in the property market, where buyers have steadily become more knowledgeable and more value conscious.
    • 15 Feb 2018
      While most homeowners will take the agent’s commission into consideration when they are trying to determine what the will get out from the sale of their property, many often forget to factor in the other costs involved in a home sale, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 14 Feb 2018
      The forecast for the national rental market in 2018 remains a mixed bag of good news and bad news. Although rentals are expected to rise slowly as the challenges of home affordability and tighter lending criteria tighten their grip, it’s a double-edged sword as the market also will come under increasing pressure from factors like declining disposable income levels.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us