Active festive season for Cape residential property

The peak summer season (from November 2012 to January 2013) has seen brisk sales activity in Cape Town’s residential property market.  

Pam Golding Properties (PGP) reports that the Cape metropolitan area saw exceptionally high sales turnover, most notably along the Atlantic Seaboard and in the City Bowl.  Encouraging signs include fresh interest in residential developments and long-term investment purchases, as well as some renewed activity from international buyers and returning expatriates. In total, PGP agents in the Cape Town metropolitan region sold more than R530 million rand in property during this 12 week period.

PGP’s MD for the Western Cape metro region, Laurie Wener, says the festive season saw demand spread across all areas of Cape Town and across all price brackets, especially properties priced up to R20 million.  “The sustained low interest rate environment has definitely improved market sentiment,” she says, “and the perception of an easing of banks’ lending criteria has also brought more mortgage-dependent buyers back into the market.  This is good for sustained activity, and bodes well for the property market in 2013.  Sales activity has been steady in most areas, and in fact we are seeing acute shortages of stock in the R800 000 to R8 million price bracket, across the region.  If the level of demand persists, this shortage should start to push prices up.”

The Atlantic Seaboard, City Bowl and West Coast were by far the busiest trading areas for PGP over this peak summer period.  In the Atlantic Seaboard / City Bowl area alone, PGP agents sold 69 properties to a total value of over R335 million.  A further R65 million in additional sales are in the suspensive pipeline, awaiting finalisation shortly.  There was particularly busy activity in the market for apartments in Clifton, Sea Point, Bantry Bay and the V&A Waterfront, with notable interest from Gauteng-based buyers seeking holiday homes and business pads in the city.  PGP’s area manager Basil Moraitis says top sales included the following:

  • R16.872 million for an apartment at Palgrave in the V&A Waterfront
  • R15 million for an apartment in Clifton’s Heron Water building
  • R13 million and R11.8 million for two houses in Fresnaye
  • R12.45 million for a house in Clifton
  • R12.337 million for an apartment in Bantry Place, Bantry Bay
  • R10.7 million for a house in Camps Bay
  • R10.3 million for a house in Higgovale

The Atlantic Seaboard also saw renewed international interest in completed new developments such as The Odyssey and Legacy, both located in Green Point.  “Whilst it is still a very value-driven market,” says Wener, “buyers do seem prepared to pay a slight premium for a brand new modern apartment.  This in turn is encouraging developers to start bringing new projects to life, including both residential and mixed-use developments.”
Other areas seeing raised levels of sales activity over the festive season included the South Peninsula, particularly Fishhoek and Noordhoek, with buyers seeking permanent, retirement and holiday homes.  There was also a significant increase in demand along the West Coast from Blaauwberg to Velddrif.  Buyers here included both holiday users and permanent residents, many of them from Gauteng, attracted by the excellent value for money on offer in towns such as Langebaan and Velddrif.

While economic conditions remain challenging, Wener believes many buyers have now adjusted to the prevailing recessionary climate.  “The result is that they are beginning once again to focus on their changing property needs, and to actively seek and acquire new homes and investments.  Our approach remains prudent but positive as we look to the year ahead.  The Cape remains an aesthetically beautiful place to live, cosmopolitan in nature and with an unsurpassed lifestyle that will continue to attract both local and international interest.  The international profile and relative affordability of property in this region should continue to underpin market performance and enhance the prospects for growth in 2013.”

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