Selling property during Lockdown

Selling property during Lockdown

Category News

Despite the challenges of the Covid-19 Lockdown, Seeff’s agents continue concluding offers to purchase with many deals already finalised and taking many new mandates.

Buyers are keen to take advantage of the low interest rate environment while sellers are also keen to transact. Many are considering lower offers where the sale is urgent, or conditions favourable such as a cash deal or large deposit, or where the buyer’s property is also under offer or they do not have to sell first.

Although well below normal market volumes, Seeff’s agents have made many successful property sales during Lockdown with many more subject to viewing. New mandates are being signed up daily as sellers are keen to take advantage of the demand in the market.

Billy Fick, licensee for Seeff Secunda says the branch concluded 11 deals between R700 000 and R2.5 million during the Lockdown with the overall interest below R1.5 million. They have listed five new properties under mandate.

The Richards Bay market which transacts predominantly below R1.6 million remains in demand. Elaine Chetty, licensee for Seeff Richards Bay says they have signed 19 offers, mostly subject to viewing and 5 deals finalised. More than half are first time buyers who are desperate to take advantage of the buying conditions. They have also signed up 12 new mandates and expect more to follow as the Lockdown eases off.

Roger Hoaten, Seeff Berea Licensee says the branch has signed 7 new sole mandates and had one conclusive sale last month and two currently under negotiation. They have had significant buyer interest, but buyers were frustrated at not being able to view as they did not see the need or logic to restrict viewings under Level 4.

The mid-market areas have been the most active. Duane Butler, general manager for Seeff Randburg says they have received many offers and concluded sales worth R9.8 million in April ranging from R850 000 to R2.5 million. Serious sellers are looking at all offers and in some cases accepting a lower price for their property if the conditions of the offer are favourable. Centurion reports a similar trend with sales in April and May.

Across the Cape metro, apartments have sold under Lockdown with Seeff making sales in the CBD in the R1.3 million to R1.7 million range and in the Sea Point area up to R2.5 million, says Ross Levin, MD for Seeff Atlantic Seaboard and City Bowl.

Adrian Mauerberger and Bryan Ginsburg, luxury sectional title agents for Seeff Atlantic Seaboard have received a significant number of written and verbal offers and are in the process of concluding a large deal. Buyer interest has been mostly between R4 million to R6 million and offers are often well below the asking price.

New listings are also coming in. The team says further that the market here is not particularly affected by the interest rate as it is dominated by cash purchasers. The lower interest rate environment has however boosted demand for blue chip property with the view to a return over the long-term.

Freehold houses are seeing buyer interest in the R4 million to R5.5 million price band, says Doris Ricketts, an agent with Seeff City Bowl. Some sellers are, however, now putting their properties into the rental market while they wait for the market to improve.

Belinda Keys, form Seeff Southern Suburbs has concluded sales in the R2.5 million to R3 million range in Claremont/Lynfrae and is picking up new mandates. Serious sellers are dropping their prices, but buyers are still a bit hesitant due to the economic uncertainty under the Lockdown.

Peter Marais and Peter Thornton also report that buyer interest is still there, and sellers are keen to sell before there is too much decline in the market.

Seeff’s Observatory and Woodstock area agents, Craig Algie and George Clelland have also concluded a sale for R3.3 million and listed a rare modernised cottage for R2.195 million. Buyers are confident, but the longer the Lockdown lasts, the more hesitancy creeps in.

Pinelands and Thornton have also made sales. Pauline Hareb, sales manager for Seeff says in addition to several sales, the branch has taken on new listings ranging up to R3.595 million, however buyer interest still lies in properties under R3million.

Jo Lombard, Seeff’s luxury market specialist for the Atlantic Seaboard says there is renewed interest in the top-end of the market in the R25 million to R60 million range from savvy bargain-hunting investors. The weakening of the rand and general downward pressure on property prices means international investors can now acquire a luxury property at around 20% below the levels 18 months ago. However, restrictions on travel and viewings has curbed the desire to act.

Author: Gina Meintjes