After a string of interest rate cuts and pent-up demand owing to months without access to real estate services, buyers are hitting the ground running as the property market re-opens under Alert Level 3. These buyers are determined to find a bargain, which has resulted in downward pressure on asking prices, particularly within the luxury housing market in Bedfordview.
“The Bedfordview market is a unique one at the moment in that several homeowners have emigrated or semi-grated and have left their homes standing empty. However, buyers seem to be unwilling to put pen to paper on an offer unless they can get a real good bargain. I have been inundated with viewings and new listing since we were able to return to work under Level 3. And, even though I have signed eight offers in the last few weeks, prices have continued to drop,” explains Tanya Sakota, sales associate at RE/MAX One.
Elaborating on her experiences, Sakota explains that there have been some cash buyers circulating and making cheeky offers. “Many sellers are accepting these offers as they feel that they have no choice owing to the uncertainty of the current economic standing in the country as well as the impact of COVID. We have also seen a rise in distressed sales and auctions of late, which makes sellers more anxious and willing to accept any offer they receive,” she says.
For those hoping to pick up a bargain of their own, Sakota says that an entry-level luxury home in this area is anywhere around R7-8 million. For this, buyers can purchase a brand-new home with all the bells and whistles. On the top end of the market, Sakota is marketing a R35 million property.
“My Advice for luxury sellers is firstly to choose a company with visible presence in the area and secondly, to select an experienced agent who specialises in the area and has a good reputation and consistent track record of recent sales. A sole mandate is the best route to go as the agent will be willing to spend more money on marketing the property, as well as be totally committed to selling the home in the shortest period of time, at the best possible price. It is also imperative that you find an agent with excellent negotiation skills in this tough market so that you are assured of the best deal possible,” Sakota recommends.
Her advice to buyers in the luxury market is to develop a relationship with the agent so that the agent can fully understand the buyers’ needs and find them the best possible fit.
According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, there never has been a better opportunity to invest in real estate than right now. “For those whose plan it was to one day enter the luxury housing market, that day has arrived. Buyers could not ask for more favourable conditions within the housing market. For those who can afford to make the investment, I encourage them to take the plunge,” Goslett concludes.
