Brisk trade in Southern suburbs middle housing market

The property market in Cape Town’s Southern Suburbs continues to attract steady demand, with buyers drawn to its spacious family homes, central location and excellent schools.

Pam Golding Properties has reported a recent spike in sales activity in the area’s lower and middle price ranges in particular, with its agents selling 44 homes in the price category below R5 million during the months of April and May 2012 alone, to a total sales value of over R77.6 million.  Of these sales, 28 were properties priced below R2 million, and 16 were priced between R2 million and R5 million.

PGP’s area manager Howard Markham says these sales were spread across the Southern Suburbs, including popular family areas such Rondebosch, Claremont, Wynberg and Kenilworth, as well as more affordably-priced suburbs such as Observatory, Mowbray, Wetton, Lotus River and Kirstenhof.  “Among the most notable individual sales were four family homes in Rondebosch, all sold for R4 million and more,” says Markham, “as well as two family homes in Newlands sold for R3.9 million and R3.6 million.”

PGP also maintained steady sales in the upper price brackets, with notable deals including:

·         R15.75 million for a home in Steenberg Golf Estate, Tokai
·         R10.35 million and R9 million for homes in Bishopscourt
·         R8.5 million for a home in Fernwood, Newlands
·         R8.25 million for a home in Upper Kenilworth

Markham says the figures are laudable sales turnovers for a two-month period, especially given the prevailing tighter market conditions.  “Show-house attendance has been good,” he says, “and the market for affordable homes remains buoyant. However, market recovery remains gradual.  Positively, some buyers are making purchase decisions now as they feel this may be their last chance to buy before prices start rising again.  Our hand-picked team of highly-qualified agents, all specialists in their particular areas, is well placed to offer advice to both buyers and sellers on how best to negotiate the current trading conditions.”

PGP’s MD for the Western Cape metro region, Laurie Wener, says the run of brisk sales activity in the middle-market is a good indicator that the Cape Town market does not necessarily slump as we head into mid-year.  “There is a perception that the market dies down completely in winter, but that simply isn’t the case,” she says.  “Yes, there is some natural slowdown in sales, as families tend to be hesitant to uproot children in the middle of a school year.  But in fact, many serious buyers regard winter as the ideal time to buy.  It provides an opportunity to view a house in its perceived worst possible condition, and to make a practical and unemotional assessment of the property.  If you can picture yourself being happy in a home in the middle of a cold, wet Cape winter, it is likely you will be even happier when summer comes.”

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