Sellers on Top in the Cape Town Property Market
Category News
Chronic shortages of affordable family homes for sale in parts of Cape Town have turned the local property market firmly in favour of its sellers, says Bruce Haywood, sales manager at Chas Everitt Constantiaberg.
“In our areas of operation in the Southern Suburbs of Cape Town, family homes in good condition and offered at market-related prices are now often selling within a week, and keen buyers who have to watch their budgets are losing out as such properties increasingly also attract multiple offers.”
Most current activity is in the R1 million price range, which is the lower end of the Constantiaberg property market, he says, although there is also strong demand in the middle segment where prices range between R1,3 million and R2,5 million.
“For those looking for a good investment in our franchise area, which stretches from to Observatory, the best value is arguably to be found in Kirstenhof and Lakeside at the moment. These areas offer good schools and easy access to the highway and are perhaps slightly under-rated at the moment, which means discerning buyers with an eye for value can make an excellent investment."
Security is also still a major component of buying decisions, so interest in upmarket gated estates is also high in spite of comparatively high prices. “Buyers with deep pockets are willing to pay a substantial premium for good security. For instance, homes in gated estates that compare favourably with properties in open areas can fetch prices of between R15 and R20 million compared to R4 - R5 million in open suburbs," Haywood says.
Rentals of up to R45 000 per month are also being achieved in secure residential estates, with tenants typically being top professionals and businessmen who often opt to rent rather than buy, he says.
Author: Barry Davies