select
|

Atlantic Seaboard sales plunge

 Property sales activity along Cape Town’s famed Atlantic Seaboard has slowed dramatically this year after a surge in 2010 – and the sales that are taking place are mostly properties that have been on the market for a long time and are now being sold for much less than their original asking prices.  
 
 That’s the word from Lew Geffen, chairman of Sotheby’s International Realty in SA, who says: “The only real life in this market at the moment is coming from investors with the means and foresight to buy trophy properties in this world-renowned location at a huge discount.”

 Deeds Office figures show that there was a significant increase in the number of sales in Atlantic Seaboard suburbs last year, with house sales in Fresnaye, for example, up from 31 in 2009 to 63; the number in Greenpoint up from 30 to 75 and the number in Bakoven up from 33 to 45.

 Meanwhile Camps Bay experienced a spectacular increase in the number of sectional title units sold, from 27 in 2009 to 112, and there were also notable increases in the number of apartment sales in Clifton, Greenpoint and Mouille Point, he notes.

 But PropStats, the Western Cape statistical service which tracks sales as they are made, shows a definite sales slump in the first five months of 2011. In Bantry Bay, for example, the total of sales listed was just nine, compared with a total of 63 registered during 2010.
 In Clifton, PropStats records just 12 sales made between January and the end of May, compared with 44 registered in 2010, and the numbers paint a similar picture in Fresnaye, Greenpoint and Mouille Point.

 “However the most dramatic decline has occurred in Seapoint, where only 91 sales were recorded in the first five months of this year, compared with the 767 registered during 2010, when investors were still eagerly snapping up the bargain flats and holiday homes that panicky owners had dumped on the market during the recession.
 “It is clear that once this stock was absorbed, and prices began to rise once more, these buyers lost interest, and that is what has happened on a bigger scale right along the Atlantic Seaboard,” says Geffen.

 “This leaves us with the situation we have now, where wealthy investors are cherry-picking those multimillion rand properties where they can negotiate a substantial price reduction, and largely ignoring the rest.

 “According to PropStats, there were 20 Atlantic Seaboard properties sold for more than R10m in the first five months of this year, and the average price reduction was 16%, although some were discounted by as much as a third. The average length of time they had been on the market was 231 days, but half had been listed for a year or more.
 “The message is thus very clear. If you have an Atlantic Seaboard property that you want or need to sell soon, get professional help from an experienced agent to make sure the price you set is in line with what the savvy investors are currently prepared to pay, otherwise you could be in for a very long wait.”
  
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
    • 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.
    • 22 Nov 2017
      While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
    • 22 Nov 2017
      The end of the year is fast approaching, and so are all the travellers, tourists and holidaymakers. For those who live near or own a property in a holiday-hotspot, the festive season also brings with it an abundance of short-term rental opportunities. Its a great way for property owners to make a few extra rand for their own holidays or to put towards their savings.
    • 21 Nov 2017
      The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
    • 21 Nov 2017
      When an offer to purchase a property is signed by both buyer and seller, this constitutes a binding agreement or “Deed of Sale” between the two parties. However, in most cases the “standard contract” might not be enough to cover all the specifics pertaining to the sale. The agreement may require some additions or alterations to clauses, which needs an expert hand in the drafting of such
    • 21 Nov 2017
      As more and more South Africans look to invest in property abroad, Spain is offering them one of the best deals in global real estate.
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
        
    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