Atlantic Seaboard and City Bowl sellers losing out
Category News
The Atlantic Seaboard and City Bowl property market already tops R6.7bn for 2017, a whopping 82% higher than five years ago, but agents report that unrealistic sellers are losing out on good deals.
Ms Billy Rautenbach, Sales Director for Seeff says that agents are almost unanimous in their view that seller expectations are hampering sales. After a subdued winter, we welcome the warmer summer months, traditionally a busier period. The message to sellers though, is that if you do not adjust your price expectations to match the deteriorating market conditions, time may well be running out.
Propstats data shows that the number of units sold is down by 15% from last year and we are observing a declining trend, says Ms Rautenbach.
Adrian Mauerberger and Cecily Sher, luxury sectional title agents for the Atlantic Seaboard note that it is mostly the sub-R8m price sector that is seeing the highest activity and there is a fair degree of ‘fence-sitting’ amongst buyers. There are many good buys in the market and this is perhaps not the best strategy if you consider how prices have risen over the last few years.
The average sectional title selling price for the Atlantic Seaboard stands at around R7m, a phenomenal 147% more compared to five years ago. Buyers should not hesitate to put in offers, even if it is below the asking price.
Pola and Nadine Jocum, Camps Bay agents support this view, noting that the suburb has seen some of the best value growth over the last ten years and it remains a solid bet for investors. Apartment demand is mostly in the R4m-R10m range and villas in the R10m-R18m range, although the team has concluded sales over R20m. The standard of purchasers in this market is extremely high and they caution sellers against overpricing, noting that many listings above R20m do not meet the buyer criteria.
Adding to that, Rochelle Serman and Lyn Pope who also operate in Camps Bay, note that while prices have stabilised, they are not likely to come down. Thus, if you find a well-priced property, you should not hesitate. Camps Bay is a solid investment and boasts excellent rental income and a high demand for short-term rentals. Older homes at affordable prices are highly sought and always a great investment for buyers looking to get in low and then upgrade and expand.
The team notes further that property stock has increased which means more competition for sellers and more for buyers to choose from. They believe the market has shifted to favouring buyers.
Seeff’s City Bowl full title sales team of Colette Jackson, Michele Apperley and Doris Ricketts say that they are noticing that sellers are using online portals and advertised listings to set their asking prices. This is a recipe for failure. You need to use a proper market comparison based on actual sales. It is vital too that you work with an agency with a track record. You may not want to hear their advice, but remember that it comes with many years of hands-on-experience.
The team also recommends that buyers not be put off by high asking prices. Put in an offer. Sometimes, when confronted with the reality of prices, the sellers may just accept. They also note that the R5m-R15m price band remains. The current full title selling price for the City Bowl stands at around R6,9m, approx. 118% higher compared to 2012, thus more than double in just five years.
Bryan Ginsburg and Hilary Biccari, Atlantic Seaboard sectional title agents note that they have seen a shift to a buyers’ market below the R3m price range. In the Sea Point and Green Point areas for example, the number of units sold is down by 23% from last year. Sellers should be wary of agents who are promising high prices as the data simply does not support that.
Mauerberger and Ms Sher advise buyers to also take care not to overpay. Rather, work with reputable agents who hold correctly priced mandates and can assist in closing a deal at a market related price in the current economic environment.
For serious sellers, there is still time to make a good deal, but perhaps not for that much longer, so serious sellers should heed the call for realistic pricing.
Contact Seeff Atlantic Seaboard & City Bowl on 021 434 9175/021 423 9146 or visit www.seeff.com.
Author: Seeff
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