Sellers on top now in Cape Town

Chronic shortages of affordable family homes for sale in parts of Cape Town have turned the local property market firmly in favour of sellers.

This lovely family home in Lakeside, Cape Town, is for sale through Chas Everitt International for R1,795m.

“In our areas of operation in the Southern Suburbs,family homes in good condition and offered at market-related prices are now often selling within a week,” says Bruce Haywood, sales manager at the Chas Everitt International Constantiaberg franchise, “and keen buyers who have to watch their budgets are becoming despondent because properties with fair asking prices increasingly attract multiple offers.
“We see buyers who make lower offers lose out time and again now to buyers who are able to better those offers, and shortages in the lower and middle segments of the market are becoming dire."
Most current activity is in the R1m price range,which is the lower end of the Constantiaberg market, he says, although there is also strong demand in the middle segment where prices range between R1,3m and R2,5m.
Security is also still a major component of buying decisions, so interest in upmarket gated estates is also high in spite of comparatively high prices. “Buyers with deep pockets are willing to pay a substantial premium for good security. For instance, homes in gated estates that compare favourably with properties in open areas can fetch prices of between R15m and R20m compared to R4m to R5m in open suburbs," Haywood says.
Rentals of up to R45 000 per month are also being achieved in secure estates, with tenants typically being top professionals and businessmen who often opt to rent rather than buy, he says.
“Arguably the best value in our franchise area, which stretches from Simon's Town to Observatory, is to be found in Kirstenhof and Lakeside currently. These areas offer good schools and easy access to the highway and are perhaps slightly under-rated at the moment, which means discerning buyers with an eye for value can make excellent investment."

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