select
|

Prime-area property deals taking longer to close

Buyers have been taking longer to put pen to paper on home purchases in Gauteng’s prime residential areas.

“So much so” says luxury property specialist Ronald Ennik “that a six-month time frame from the first viewing to acceptance of an offer has become quite common.”

As a result, brokers of homes in Sandton and other high end northern nodes in Johannesburg’s residential market are increasingly, and sensibly, seeking wider time frames on sales mandates, adds the CEO of Rosebank-based Ennik Estates. 

“Right now up to 80 per cent of buyers in the top end of the Jo’burg market are shopping around opportunistically, with no specific deal deadline to meet in a climate in which there is no pressure for them to transact.

“Astute buyers understand the current pace of the market – not least because they themselves have been setting it. And they have done so against a background of sentiment-sapping socio-economic and political uncertainty that is unlikely to change much before the 2014 general election. 

“That is why buyers have not been responsive to the kind of ‘buy-or-miss-the-boat’ pressure that prevailed at the start of the last market upturn,” says Ennik.

“Put another way, there is no wave of pent-up buyer demand just waiting to roll out at this stage. For deals to be struck in the current climate sellers must be well priced – not over-optimistic – and buyers must expect to be more negotiable.

“That is why the ‘top-down’ seller approach (of pitching unrealistically high for a sale at the original hoped-for price) does not work in the current market as it did in the boom years,” says Ennik.

“Having said that, Ennik Estates is now seeing a slight uptick in the market – which is reflected in the fact that some homes which have been on sale for a long time are suddenly finding buyers.

“They are astute buyers who, I believe, are timing their entry, or re-entry, perfectly.

“I have been through many property ups and downs over many years – and it is a fact that it generally takes six months before people realise that the market has turned!”



  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