Slow market, but business as usual for well-priced properties

Slow market, but business as usual for well-priced properties

Category News

Overall, the latest economic and property market data points to continued weakness as we head into the second part of the year. Economists and analysts believe that the economy and property market will remain flat for the remainder of this year.

The latest FNB Property Barometer shows that price growth for the Cape Town metro has slowed further by mid-year with the Southern Suburbs recorded year-on-year growth of 7.4%, down from 8.6% in the first quarter and a multi-year high of 15.9%, measured in mid-2015.

It is important to bear in mind that the factors which affect the economy and property market, are by and large beyond the control of buyers and sellers. The best advice, is to work with what we know, and that is that for as long as people need a roof over their heads, there will be buyers and with that, opportunities for sellers. It is just that sellers now need to be more market related with their asking prices.

The latest Propstats data gives some insight into activity for the first half of the year to end July as follows:

Kenilworth Park

In the Kenilworth Park area, 4 houses have sold at an average price of R1,611,250 and within just 18 days from listing on average. Sellers have only had to drop their asking prices by around 5.5% on average and one sale was concluded for the full price. 4 Apartments also sold at an average price of R968,750. Interestingly, apartments took longer to sell, showing an average time on the market of 40 to as much as 70 days and sellers having to drop their price by as much as 14.2% on average; both indicative of some element of overpricing still evident in this sector of the market.

6 Apartments also sold at an average price of R1,091,667 with Seeff achieving 33.3% market share. Interestingly, apartments took longer to sell, showing more volatility with the time on the market averaging at 50 days, but ranging to as much as 70-100 days. Sellers achieved on average 7.3% below their asking prices to as much as 14.2% less. This seems to show some element of overpricing still evident in this sector of the market.

Kenilworth

The Kenilworth area also shows good activity with 6 houses sold at an average price of R2,455,833 and within 39 days. Here too, sellers are still having to cut their asking prices by around 10.1% on average to as much as 21.7% as price expectations still appear to be out of step with the market.

The apartment sector was particularly active with 31 sales at an average price of R1,458,032. Most notably, sales were concluded in just 28 days on average with some 68% of all sales concluded even faster than this. Sellers achieved on average about 3.9% below the asking prices. Although 77% of sales were below R1.5m, a number of higher value sales were concluded ranging in price to R2.2m-R2.7m.

Harfield Village

Harfield Village also experienced a fairly active first half of the year with 18 sales at an average price of R2,449,444. Sales were concluded within about 48 days on average. Sellers achieved about 7.7% below the asking prices on average, although just over half were concluded in under 7%. There was just one apartment, which sold for R1.15m within 24 days of listing and for just 4.2% below the asking price.

As the above statistics demonstrate, each area and suburb is unique. The ideal location and affordability of these suburbs continue to boost demand for the areas. As we approach the summer months, it will be a perfect time to consider placing your property on the market as we are likely to see an increase in buyers looking for property in the areas to be closer to places of work, top schools and the university.

No matter how challenging the economy or property market may seem, people still need to sell and buy homes, and there is definitely still a market for correctly priced properties

If you would like to chat about your next property move, contact us today. After all, home is our story and property our passion!

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Author: Seeff