select
|

Cape Town’s residential property market holding its own

The market for residential property in the Cape Town metropolitan area is holding its own, and property agents are expecting a busy final quarter as they enter the summer season – traditionally the most active time of year for residential sales in the Cape. Pam Golding Properties (PGP) reports that stock levels are beginning to rise in many areas, coupled with fresh activity in the developments market.


There is excellent flow from the kitchen into the living areas and out onto a wrap-around patio. 

PGP’s MD for the Western Cape metro area, Laurie Wener, says there is still enormous demand for family homes across all areas of the city, particularly in the price ranges from R3.5 million to R8 million. “First time buyer activity is quite brisk in some areas,” she says, “ particularly in suburbs along the Western Seaboard, where one can still obtain an apartment for under R800 000 and a family home for under R1.5 million. While top end sales activity has been moderate, PGP has concluded several substantial deals in the past quarter (July to September 2013), including a R23.5 million home in Constantia, sold to a UK buyer, and a R26.5 million apartment in Clifton, sold to a buyer from Western Africa.  There are also increasing signs of fresh activity in the residential developments market, with a number of developers indicating that they are eager to re-enter the market, with projects in various price categories.”

“The sectional title market on the Atlantic Seaboard, in the City Bowl and in the Southern Suburbs is seeing a flurry of activity,” Wener continues, “with high demand coupled with shortage of stock.  This situation has boosted prices by around 20 percent over the last nine to twelve months. There are also indications that banks are beginning to take a broader view towards mortgage finance.”


Pam Golding Properties has the exclusive mandate to market a contemporary three-bedroomed apartment in Palgrave, one of the newest residential blocks at the V&A Waterfront. The 322sqm unit has views over the marina, canals and mountains. The apartment is priced at R22 million, inclusive of VAT and with no transfer duties applicable.

Property finance consultant with South Africa’s biggest bond originator ooba, Yvonne Viljoen, agrees that banks appear to be easing their lending criteria:  “There are a number of indicators that demonstrate the banks’ improved appetite for extending credit for home loans. These include lower average deposit requirements, which are down by 21.2 percent, year on year, as well as a slightly lower Initial Decline Ratio, which is the proportion of bond applications that are rejected by the first lender applied to. That figure dropped 1.2 percent between August and September (2013), to 47.2 percent. But of those 47 percent, more than a quarter (28.9 percent) were successful on application to an alternative institution.” (National figures for whole of South Africa)

Viljoen adds that banks are currently requiring up to 20 percent as deposits, depending on the client’s individual risk profile and the purchase price. “The average deposit paid by ooba’s successful home loan applicants in September 2013 was 14.1 percent of the purchase price,” she says. “That’s down from close to 17.9 percent in September 2012.”

Viljoen and Wener are both confident of moderate price growth in the property market during the final quarter of 2013, and into 2014.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 20 Feb 2018
      The suburb of Greenstone in Johannesburg east came to be over the last two decades. “In the beginning, it was literally just a hill with not so much as a shopping centre,” says Michael Levy, Property Consultant at Jawitz Properties Bedfordview. Today it has plenty shopping facilities and is fully built, boasting high-density, upmarket housing and residential estates, though still has a few pockets poised for commercial development.
    • 20 Feb 2018
      A major shift in the ageing paradigm has precipitated an equally dramatic transformation in the retirement sector, with modern accommodation options worlds away from the conventional model.
    • 19 Feb 2018
      Possibly one of the biggest sources of contention between landlords and tenants surrounds the rental deposit. “Most tenants rely on getting their rental deposits back when moving, so that they can use it to pay a deposit on their new home. Having it withheld or even having large amounts deducted can lead to a lot of distress,” explains Bruce Swain, CEO of Leapfrog Property Group.
    • 19 Feb 2018
      Situated approximately halfway between Johannesburg and Pretoria, Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of the major business hubs in the country with major pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
    • 19 Feb 2018
      The PayProp Rental Index Annual Review of 2017 shows that the rental market suffered from much volatility during the year. It kicked off with rental growth spiking in January with weighted year-on-year growth (YoY) growth peaking at 8.3% before dropping to 6.34% in July, dipping down to less than 5% in November and then experiencing a slight uptick at 5.75% in December.
    • 19 Feb 2018
      While most homes in cluster complexes, estates and other gated communities come with at least one garage or carport, residents would often like additional permanent parking or storage areas for things like trailers, bikes, boats and caravans.
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
    • 15 Feb 2018
      One positive consequence of the financial crash in 2008 was the rise in consumerism, especially in the property market, where buyers have steadily become more knowledgeable and more value conscious.
        
    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