Shorter summer holiday will boost market
THE SHORTER summer holiday that schools will have this year in return for a longer winter holiday to accommodate the World Cup will be very beneficial for residential property, says Anton du Plessis, chief executive of Vineyard Estates.
Most Cape schools will be returning to their classrooms by January 13, a good deal earlier than usual.
Traditionally, says Du Plessis, potential Cape buyers go into holiday mode and adopt a holiday mindset from the time the school holidays kick off in December.
In recent years, this break-from-business period has been extended to the point where real property activity is not seen until about January 20.
Now, with the summer holiday cut by three weeks, Du Plessis predicts that “a business mindset” will be far more evident at this traditionally laidback time – and home buying is likely to be evident from early January onwards.
“Estates agents can expect four good months before the traditional winter hibernation period has its usual effect. It is an observable fact that sales drop by 50 percent and more in May and June compared to the summer months,” says Du Plessis, “so the slight decrease in winter sales which this longer June/July holiday will bring about will not be significant.”
Du Plessis says previous World Cups, Olympic Games and other major sporting events had shown that about eight percent of the visitors return for a second holiday in the same area.
“I expect much the same to happen here in Cape Town with this qualification, that Cape Town’s impact on visitors will be far greater than that of any European resort, because Cape Town is so very different and many will have experienced nothing like this before.
“I also expect that one to 1.5 percent of those who return for second and third visits will end up buying here – despite the long haul flight.”
Estate agents should, therefore, be advertising themselves throughout the World Cup period.
“Already there are signs of an upswing in buyer interest at the Cape.
“The World Cup draw was, to my surprise, the catalyst that many people were waiting for,” says Du Plessis.