select
|

Cape Town market holds its own

Says Francois Venter, Director of Jawitz Properties: "While much of the comment on the residential property market has been negative, the figures show that more than R10.4 billion of properties was sold during 2011 in the major Cape Town metropolitan areas, only slightly down from 2010." In terms of volumes of transactions, there was little difference between last year and 2010.

By far the majority of sales in 2011 were under R3 million in value, the exception being the Atlantic Seaboard, an identical pattern to 2010. The Western Seaboard sold 208 more properties this year than last, and the highest number of properties overall, with the Southern Suburbs coming in second, a reversal of 2010 when the Southern Suburbs out-sold the Western Seaboard. Both areas enjoyed slight increases in the average sale price. In the False Bay area, more homes were sold in 2011 than in 2010, and the average number of listing days narrowed from 150 to 129. In both the Atlantic Seaboard and City Bowl, sales of sectional title properties strongly outperformed sales of freestanding properties both last year, and in 2010.

Venter says that prices on the Atlantic Seaboard held steady in comparison to 2010, but enjoyed little or no growth in nominal terms. Sectional title sales were particularly strong there, with 427 units being sold compared to 186 houses. "A striking trend in this area was the predominance of cash (62%) sales over bonded sales (38%), whereas the opposite was the case in the Northern Suburbs where 77% of sales were bonded sales and only 23% were cash sales." Overall, about 40% of properties in the major areas are bought with cash, particularly in the more affluent areas, reflecting the confidence of cash buyers in property as a long-term investment.

The largest difference between asking and selling prices was -14.5% for the Atlantic Seaboard, followed by -13% for the Constantiaberg area, -11.7% for the City Bowl, and -10.5% for False Bay. The best performer was the Northern Suburbs, where the difference was only -7.2%, followed closely by the Western Seaboard's -7.5%.

"This isn't surprising, given that areas like the Atlantic Seaboard and the Southern Suburbs include some of the more affluent suburbs of Cape Town, such as Camps Bay and Constantia," says Venter. "Our experience is that many sellers in these areas are reluctant to accept that prices have softened since the heydays of the property boom." Prices declined by 4.4% in nominal terms year-on-year for the Constantiaberg area, and the average number of listing days increased from 80 days in 2010 to 91 days in 2011.

The Northern Suburbs enjoyed the shortest average number of listing days at 88 days, while sellers on the Atlantic Seaboard had to wait an average of 140 days before their properties sold. "Once again, the average number of listing days is closely related to the difference between asking and selling prices. Because sellers on the Atlantic Seaboard typically priced their properties an average of 14.5% above the market, their properties remained on the market for longer. Northern Suburbs sellers, on the other hand, priced their properties more realistically and sold them within an average of 88 listing days."

*This includes the Atlantic Seaboard, City Bowl, Constantiaberg, the Northern Suburbs, Southern Suburbs, the Western Seaboard and False Bay.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
        
    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