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."

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 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.
    • 15 Feb 2018
      While most homeowners will take the agent’s commission into consideration when they are trying to determine what the will get out from the sale of their property, many often forget to factor in the other costs involved in a home sale, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 14 Feb 2018
      The forecast for the national rental market in 2018 remains a mixed bag of good news and bad news. Although rentals are expected to rise slowly as the challenges of home affordability and tighter lending criteria tighten their grip, it’s a double-edged sword as the market also will come under increasing pressure from factors like declining disposable income levels.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us