Confidence rising in Onrus property market

The property market in the Western Cape coastal town of Onrus is showing signs of picking up steam.

Deon Esterhuyse of the local Aida franchise says the first indications became evident in July. "We have noticed increased demand from buyers who are planning to relocate - the so-called semigration buyers - because of the quieter lifestyle.

"The trend continued in August and we have concluded several cash sales, especially in the R3m to R5m price range. The announcement that the controversial Property Expropriation Bill has been shelved has also contributed to renewed confidence in the local market and arguably on a wider scale countrywide," Esterhuyse says.

A third factor that boosted buyer confidence, he adds, was that interest rates remained unchanged. "Buyers see that as a good indication that the interest rate cycle has reached a peak and that rates are likely to decrease over the coming months.

"If we are reading the market correctly, demand will pick up even faster now that summer has arrived - activity in our coastal market usually escalates as the season progresses."

Buyer interest in the more affordable market has risen in tandem with higher sales volumes in the luxury market, says Esterhuyse. Family buyers are now more active in the price range between R1m and R1,5m, which will buy a three-bedroom home with double facilities.

Units in security villages are also readily finding buyers and investors, he says. "Interest has become quite lively. For instance, nine of an available 18 units in the Heron Close development were recently sold at launch. The development is currently under construction and offers three-bedroom units with two bathrooms and garages, priced between R1,4m and R1,75m.

"The centrally-located development has drawn city buyers who are retiring as well as local buyers who are investing in the units as rental properties, but with a view to own use when they retire," he says.

Issued by Aida National Franchises

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