select
|

The bridging gap of property prices

The selling prices of properties within Cape Town’s City Bowl and the Atlantic Seaboard are edging ever closer to the full asking prices as demand for property in the city increases. 

This is according to Susan Watts, Broker/Owner of RE/MAX Living, whose office services Camps Bay and the surrounding suburbs. She notes that while there was once a large divide between what sellers were asking for their homes and what buyers were willing to pay, over the last 18 months the gap has been closing.


3 Bedroom Apartment for sale in City Bowl, Cape Town

RE/MAX Living sales associate and area specialist, Vangelis Doucas says that the market is currently experiencing a shift in dynamics with sellers adjusting their prices to be more in line with the market. Buyers are also now prepared to offer more due to the short supply of properties available. “Supply and demand is intricately linked and currently the supply of properties on the market has dwindled, pushing demand up substantially. Currently the difference between asking and selling prices is around 5% on average, which is a lot closer than what was seen previously,” says Doucas.

He notes that demand within the City Bowl has always been strong with many buyers desperately wanting to enter the market in one of the city’s most prized real estate locations. However, demand has been further heightened by the change in the market and buyers realising that there is no better time than now to invest and get into the property market.

“Just as we have seen demand increase and many new buyers coming into the market, by the same token, many existing homeowners have also been looking to purchase additional properties or merely upgrade into larger spaces for their newly-established families or downgrade as their families depart and go about their own way. We have a strong movement towards Cape Town with more and more buyers coming to live here because of the lifestyle and safety this city offers,” says Doucas.

According to Doucas, homes that are considered to be correctly priced for the market are selling within days in the City Bowl. “Market related properties only stay on the market for a few days as opposed to homes that are considered to be overpriced. When the asking price of a property is perceived to be above its market value, homes can remain on the market for months on end, which emphasises the importance of pricing a property at the right value,” he says.

Adrian Goslett, CEO of RE/MAX of Southern Africa, says that sales trends show concrete evidence that while sellers may think they are giving themselves room for negotiation by elevating their asking price, they are actually just putting off potential buyers and decreasing their chances of selling their property.

“Sellers who are serious about getting the best possible price for their property will need to consider a few things when deciding on an asking price to ensure it is market related,” says Doucas. “It is important for the seller to look at the average prices achieved for similar properties in the vicinity, supply and demand and market conditions in general. The condition of the home should be seriously looked at when assessing a suitable market-related price. Presentation and general condition of the home are imperative factors to be taken into account. Sellers could consider an upgrade and neatening of the garden, main entrance areas, bathroom and kitchen fittings and general appearance of the home,” he advises.

Doucas concludes by saying that above all it is vital for sellers to be ready to sell and take advantage of the strong market conditions in their favour at the moment. “Sellers should select a reputable real estate agent who can represent them in the property market and work closely with them to achieve the desired result.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 25 Apr 2018
      Whether you are a seasoned seller or new to the game, putting your home on the market is an exciting moment. To ensure you get the best possible outcome these 8 value adding additions to your home is worth the effort.
    • 25 Apr 2018
      After four years of unprecedented growth fuelled by semigration, the Southern suburbs market faced a number of challenges in 2017, including dwindling affordability and a marked slowing in house price growth with many sellers forced to lower their prices in order to secure a sale.
    • 25 Apr 2018
      Mall of Africa, is celebrating its second year of sensational success. This splendid super-regional shopping centre first opened on 28 April 2016, and has grown in popularity, performance and profile since then.
    • 25 Apr 2018
      While the role of trustee in a sectional title scheme is a voluntary and unpaid position, it is one that comes with huge responsibility. Trustees have a fiduciary duty towards their scheme, says Chinelle Hewit, Operations Manager at sectional title finance company Propell.
    • 24 Apr 2018
      The thing about the property ladder is that at some point in our lives we all have reason to want to climb a rung or two higher. Sometimes, it’s because we’ve outgrown our previous dream home, or because we want to be in a better neighbourhood that’s closer to work or to schools. Sometimes it’s because our circumstances have changed, and we’re taking care of elderly parents or relatives. Sometimes, it’s just because we want a property that reflects the financial status our hard work has won.
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
        
    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