Continued growth on Atlantic Seaboard

After a busy festive season on Cape Town’s sought-after Atlantic Seaboard, Pam Golding Properties (PGP) reports that sales activity has continued unabated into the first months of 2012.  

The group sold R311 million in residential property in these areas between December 2011 and February 2012 – approximately 44 percent of the total R700 million sold by all agencies (source = Propstats).  In unit terms, PGP concluded 52 sales on the Atlantic Seaboard during this period.

PGP’s area manager Basil Moraitis says the consistently high turnover is indicative of the sustained demand for the suburbs of the world-renowned Atlantic Seaboard.

“The overall figure of R700 million sold by all agencies was not due to a sudden holiday peak or other unusual event,” he says, “but was spread consistently across the period.  Some R200 million of that business was written in December and approximately R250 million in both January and February.  While the mid-summer months always see the highest sales turnover along the Atlantic Seaboard, it is very encouraging that the sales activity was sustained at this high level even after the bulk of holidaymakers had returned home.”

Moraitis says there has been a definite upturn in activity across all price ranges, but most notably in the market for homes priced over R10 million.  PGP was responsible for around 60 percent of the rand value sold in this price bracket from December 2011 to February 2012, selling nine properties out of a combined agency total of 16.  

“Buyers in this category were mainly seeking iconic designer homes with panoramic ocean views - or vacant land where they can build such homes,” he says.  

“Two of our major transactions were purchased for position alone, and will see brand new homes built on the erven.  Buyers included a number of Gauteng residents relocating to the Cape, as well as a few international buyers – a welcome sign, as they have been largely absent from the market for a number of years.”

Notable sales concluded by PGP in this period include:
  • R26 million for a four-bedroomed home in Bantry Bay, set on an erf of over 1600sqm
  • R26 million for a six-bedroomed home in Clifton, set on an erf of 734sqm
  • R15.3 million for a 1413sqm vacant plot in Bantry Bay
  • R14 million for a 136sqm three-bedroomed apartment in Heron Water, Clifton – sold within a day of listing, at full asking price
  • R12.165 million achieved for a 280sqm three-bedroomed apartment in Toscana, Bantry Bay – sold within two days of listing for 96 percent of the asking price

Moraitis adds that there was a high incidence of cash buyers, as well as signs of investor and speculative buyers coming back into the market after a lengthy absence.  “This is very positive news,” he says, “and an indicator of renewed confidence in the Western Cape property market.”

“Buyers are still extremely value-conscious,” he adds, “and are looking to secure the most competitive price for their purchase.  At the same time, sellers are acutely aware of market conditions, and are holding out to extract the best possible price they can.  

The result is that accurate pricing of homes is more crucial than ever amid current market conditions.  It is encouraging that we have seen some sellers who have had their homes on the market for over a year, finally concluding deals in the past few months.  It all depends on how urgently they need to move, and how long they can afford to keep their capital tied up, while waiting for market conditions to improve.”
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