select
|

Sales sizzle as summer approaches – but stock is scarce

If sales for the 3rd quarter of this year are anything to go by, the Cape Town property market could be set to sizzle this summer.   

The latest Propstats figures show a healthy increase in residential sales for the third quarter on the Atlantic Seaboard, in the CBD and in the Southern Suburbs and Constantiaberg areas of the Western Cape, compared to sales in the third quarter of 2011.

“Buyer demand is strong, which should set the stage for a good summer season.  Unfortunately, with the best months of the year quickly approaching, at this point stock is scarce, particularly of properties priced below R5 million,” says Francois Venter, Director of Jawitz Properties.

Summer is typically the best time to sell property in Cape Town. The weather is warm, gardens are looking lovely, show days are well attended and buyers are feeling buoyant.

Sometimes, this leads to sellers increasing their prices; but Venter says that strategy won’t work this year.

“Buyers are still hunting for the so called bargain, which is acting as a dampener on prices,” says Venter.

“Normally when there is strong demand, and insufficient stock to meet it, property prices increase. But so far, that dynamic is not playing out and prices are essentially flat.  Despite this, some sellers are still holding out for unrealistic prices.  This could mean they miss the summer buying season, and result in fewer saleable properties on the market.”

Last quarter, the Southern Suburbs of Cape Town saw the most growth in sales, with 44 more properties sold than in the third quarter of last year. The Constantiaberg area saw the second highest growth, with 22 more properties sold, while the CBD saw 18 more sales, and the Atlantic Seaboard enjoyed an extra three sales.

However, for the year to date, the Atlantic Seaboard has seen strong sales, with 433 properties sold, at an average price of just under R3,9 million. In the CBD, a total of 369 properties have sold this year, with the average home priced at just over R1,8 million. The Constantiaberg area has seen a total of 387 sales, with the average home sold for just under R2,4 million, and coming out on tops the Southern Suburbs has had a total of 790 homes sold to date, with an average price of just under R1,8 million

“Sales figures could be even higher next quarter if stock levels increase.  The buyers are there.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 23 Jan 2018
      Many people only start thinking about home-ownership when they are ready to “settle down” or start a family, which is why first-time buyers these days are generally in their mid-30s, compared to those in the previous generation who were usually in their mid-20s.
    • 22 Jan 2018
      Moving away from the city to a country or coastal town and a slower-paced life is a frequent new-year resolution for South Africans, but thorough research should be done before you break free from the hustle and bustle, because making the wrong move could turn out to be a very expensive mistake, and even more stressful for you and your family than staying in the “big smoke”.
    • 22 Jan 2018
      Cape Town is home to many breathtaking and historic homes, but House Invermark designed in 1969 by South African architect Gilbert Colyn, with inspiration from two modernist icons: the Glass House by Phillip Johnson and Farnsworth House by Ludwig Mies van der Rohe is in a class of its own.
    • 22 Jan 2018
      2017 was a challenging year for the South African property market in general, despite small pockets of thriving activity in areas like the Western Cape. As we head into 2018, Tony Clarke, Managing Director of the Rawson Property Group, casts his eye forward to property trends and market influences that could make their impact felt in the New Year.
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
        
    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