Unit sales increase significantly compared to previous year
THE RESIDENTIAL property market continues to reflect an increase in unit sales as interest rates remain low and the gap narrows between sellers’ listed prices and the price buyers are prepared to pay, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
“For the first five months of 2010, PGP sold almost 40 percent more units compared to the same period last year. Show house attendance has improved significantly, however, buyers with low or no deposits still experience difficulty getting bond finance,” he says.
Although most of PGP’s sales are for homes costing up to R6 million, the luxury market remains active and the Western Cape region reports a strong demand for exceptional properties among South African cash buyers. Notable sales by the company include homes on the Western Cape Atlantic seaboard sold for R45m, R36.5m, R35m and R30.2m. In Kommetjie, a house was sold for R10m and in Hermanus an apartment and a house were each sold for around R8m.
The company’s Stellenbosch office reports strong demand for correctly priced homes as families prioritise locations with access to good education facilities. Two recent sales were concluded within a few days of the properties being listed, as they were set at market-related prices. Luxury properties in Stellenbosch remain sought-after among Gauteng buyers.
In Pretoria, PGP reports increased interest in luxury homes, with sales of R6.5m and R9 . 8 m c o n c l u d e d i n s e c u r e estates, as security remains a high priority.
Golding says a region that is showing signs of increasing p o s i t ive s e n t i m e n t i s t h e greater Durban area, where the completion of the new King Shaka International Airport, r e v a mp e d b e a c h f r o n t , a n d improved infrastr ucture around the Moses Mabhida Stadium are boosting confidence.