25 Per Cent Increase in Show Houses, 50 Per Cent Drop in Visitors
News > news - 21 May 2008
The average number of interested buyers attending show
houses in the Western Cape has plummeted with 50 per cent, while the show
house property stock has increased with 25 per cent compared the previous
year.

According to statistics derived from House Finders' data tracking 13 Western
Cape real-estate companies' show house exhibitions, there has been a 22 per
cent year on year increase when comparing the first quarter of 2007 with the
first quarter of 2008.
However, more stock means more options for buyers, and the spill-over now is
a decrease in buyers visiting show houses.

Commenting on this development by analyzing show house trends in Cape Town's
southern suburbs, Jeanne van Jaarsveldt, RE/MAX of SA finance and marketing
director said there was a 50 per cent drop in buyers visiting show houses
over the last few months.

"A year ago the average number of buyers visiting a show house was between
15 to 30, with homes in middle price brackets being the most active. We are
now seeing between 4 - 12 visitors coming to show houses over weekends," he
said.

Says RE/MAX Elite broker and owner, Alan Burgoyne: "The most active price
brackets are in the Plumstead area where buyers have an interest in
properties between R900 000 and R 1 300 000. In the South Peninsula the
average price is R750 000 to R1 000 000, while in the South East Peninsula,
the majority of buyers are looking for properties under
R750 000.

"Bergvliet and lower Constantia have most active showhouses, which are in
the vicinity of R2 million plus."

But now, negative reports about increased crime at show houses, which
circulated in the media last week, can further negatively impact on
attendance figures.

Last week, Western Cape media reports of increased crime activity targeted
at estate agents, specifically during weekend at show houses in the southern
suburbs.
 
A well-known real-estate agency has also called for a complete ban of
showhouses
 
"With the number of houses for sale having increased dramatically over the
recent months, the majority of serious sellers recognize the important role
showhouses play in ensuring that their homes are viewed by the maximum
number of serious buyers," says Van Jaarsveldt.

"RE/MAX of SA therefore condemns any show house bans. It is also our view
that all industry role-players including all real-estate agencies, industry
bodies, and security firms, should work closely together to equip agents
with the necessary safety and security insights and infrastructures to
circumvent and decrease criminal occurrences during show houses if the
frequency of incidents further increases.

"Show houses and residential exhibitions will always remain a key component
in an agent's pool of marketing activities. RE/MAX of SA condemns any
criminal activity interfering with this, and we will utilize our
infrastructure and influence to assist all South African agents and
real-estate agencies to address this issue."

RE/MAX of SA has now devised a show house protection agreement plans with
security firms in the southern suburbs.
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