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.”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 22 Jun 2018
      The rental market in many Johannesburg suburbs has shown encouraging signs of revival this year but it remains a competitive market and landlords who best cater to their market’s needs will reap the healthiest returns.
    • 22 Jun 2018
      Home design is constantly evolving to reflect the changing needs of society. We look at some of the ways in which our use of space is changing.
    • 22 Jun 2018
      While estate agents can help the seller with correctly pricing the property and marketing a property to the right pool of potential buyers, at the end of the day it’s the impression that the property will make on buyers that counts the most.
    • 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.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us