select
|

Don’t go overboard, coastal sellers advised

House price growth in SA’s coastal regions is at last back in positive territory, for the first time in more than two years, according to the latest research by Absa.
 
However, says Richard Gray, CEO of the Harcourts Real Estate group, sellers in these areas should not take this as a signal to raise their asking prices, “because there are many other owners who have been waiting for just this moment to put their homes on the market. And as they do so, we expect the increase in the number of homes for sale relative to demand to put the lid back on price growth, at least for the next few months”.
 
In fact, he says, those who seriously want to sell now should be looking for ways to take advantage of the current increase in demand as quickly as possible, “by enlisting the help of a dynamic agent to help market their property, and by being open to negotiation on price when a buyer shows interest”.
 
The most recent Absa Housing review shows that prices in SA’s coastal regions grew by an average of 5,2% in the June quarter – and by an impressive 15,6% year-on-year. “But although the North Coast of KwaZulu-Natal recorded a whopping 42,7% in the past 12 months to become the best performing area, it is important to note that this was mostly the result of an increase in the demand for primary homes therewith Durban’s commercial and industrial sectors moving north to be closer to the new international airport and trade zone.
 
“And we have observed a similar trend in other coastal areas where the number of permanent residents and investors (rather than holiday home buyers) is increasing due to retirement, relocation for lifestyle reasons, or a rise in rental demand close to new capital projects.
 
“Towns such as Hermanus, Amanzimtoti, Mossel Bay and Blouberg come to mind in this respect, and we believe it is the heightened activity in such areas that is really driving coastal home price growth,” says Gray.
 
The Absa figures also reveal that the Western Cape’s Peninsula & False Bay area has done well, notching up an average year-on-year price increase of 16%. It was also the best quarterly performer with an increase of 6%, followed by the South Coast of KZN with 5,6%.
 
“Overall, the only coastal area where price growth has not turned positive in the past quarter is the West Coast, but we expect this situation to change very soon because the proposed Saldanha IDZ is already boosting property demand in the area – once again for permanent or long-term rental homes rather than holiday homes.”
 
Meanwhile, he says, the latest FNB statistics on what it calls “holiday towns” shows that although sales are increasing in coastal areas, overall volumes are still only 32% of what they were during the last property boom, while those in the major metro areas are back up to the 52% level.
 
“This underlines the fact that many coastal towns and villages are still very dependent on second-home buyers,and the danger for sellers in reading too much into reports of substantial price increases along the coast as a whole. There is higher demand, but it is concentrated in certain areas at this stage, and those who hope to sell soon really should enlist professional help to ensure that their asking price is correct for their local market.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 24 Nov 2017
      There are some things that money can’t buy – spectacular views from Mouille Point to the V&A Waterfront and a trendy and lively neighbourhood that encapsulates the very best of the Cape Town lifestyle.
    • 24 Nov 2017
      Tshwane’s four-bedroom Mayoral mansion, nestled among ambassadorial residences in the upmarket suburb of Muckleneuk, fetched R5.1 million after spirited bidding at High Street Auctions’ final sale of the year.
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    • 22 Nov 2017
      While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
        
    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