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Stock levels rising in Southern Suburbs

The extremely low stock levels that have been evident in Cape Town’s Southern Suburbs have started to ease, with more properties for sale gradually coming on to market.
 

An apartment in the sought-after Woodlands Park complex in central Rondebosch is being marketed by RealNet Southern Suburbs for R1,595m

“With the Cape winter having been unusually harsh this year, says RealNet Southern Suburbs franchise principal Geoff Stroebel, owners seem to have waited some weeks longer than usual to list their homes for sale, but since the start of October when temperatures started to rise, there has also been a steady increase in stock levels.”
 
However, he says, the supply of homes for sale at the lower end of this market is still lagging demand. "There is really brisk demand for homes in the R1,2m to R1,8m price range - but buyers are astute and, in spite of the short supply, will not pay inflated asking prices. Offers that are between 10% and 15% lower than asking prices are still widespread, and many sellers are deciding to accept such offers."
 
Demand in this price range is evenly spread across suburbs from Kenilworth through to Bergvliet. Targets are mainly established family homes and sectional title apartments with two bedrooms, and upcountry buyers are particularly active now in areas close to the University of Cape Town campus, such as Rosebank, Rondebosch and Claremont.
 
“Parents of prospective students as well as investors target properties in this price range and monthly rentals of up to R10,000 can be achieved for homes and apartments that can accommodate three or four students,” Stroebel says.
 
Demand for property in higher price ranges, however, is more subdued and the market is fairly stagnant above the R3m mark, he says.
 
"Some over-extended homeowners in upmarket suburbs such as Constantia, Newlands and Bishopscourt are still trying to offload luxury properties with taxing bond repayments. They are, however, struggling to find buyers at asking prices of between R10m and R20m and huge discounts are not uncommon. A prime example is a home originally marketed at R21m that recently sold after a year for R14m - a full third less than the asking price."


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