Although the sectional title market in the Western Cape’s Southern Suburbs has suffered from the double whammy of interest rate hikes and the National Credit Act, sales of properties valued upwards of R2 million have remained strong in the area.
Claude McKirby of Lew Geffen Sotheby’s International Realty, Southern Suburbs says that in the more affluent parts of the Southern Suburbs, sellers are receiving some of the highest offers ever recorded in the region.
“Areas like Constantia and Bishopscourt are still in high demand amongst foreigners, buyers from Gauteng and expatriates returning to South Africa. These areas have remained relatively unaffected by the impact of interest rate hikes and the NCA. However, we are seeing shifts in property turnover patterns in certain suburbs,” says McKirby.
“Bishopscourt, in particular, is renowned for its low turnover of stock. Traditionally, we see about 10 to 13 Bishopscourt properties being sold per year. In 2007, however, the turnover for the suburb was approximately R260 million, with a total of 27 sales in Bishopscourt. Some sellers cited geopolitical reasons for selling,” he says.
McKirby says that serious sellers are also becoming more realistic in their asking prices, with the result that overprice properties will not sell.
“In the greater Constantia area, we exceeded our 2007 sales targets by 25% and recorded a R220 million turnover for the year” says McKirby.