Cape housing demand not as slack as peers’
DATA shows that the slowdown in demand for residential property in the Western Cape is not as severe as in other provinces.
PropStats’ data from the Western Cape branch of the Institute of Estate Agents South Africa has indicated that the slowdown in the demand for residential property in South Africa has not been nearly as severe in the Western Cape as some reports have suggested.
PropStats manager Annette Evans says the figures show that in October just under R1 billion worth of property was sold and the average price was R1 046 527.
This was 13.7 percent off the listed prices and the average time for a sale was 97 days.
“These figures compare well with those of October 2009, when R1.156bn worth of property was sold at an average price of R1 956 452, which was 1 0 . 4 p e rc e n t b e l ow t h e l i s t prices.
“It seems we are working through the recession fairly successfully.
“Now that we have had a further drop in interest rates, an upswing is likely in March/April 2011,” says Evans.
PropStats’ figures also show that Atlantic seaboard prices at an average of R4.301 million, although a staggering 25 percent below the listed prices, were by far the highest in the Cape, confirming reports that the area is undergoing a boom. The Atlantic seaboard was followed by the City Bowl, where t h e ave r a g e p r i c e w a s R2 874 538, Constantiaberg ( R 2 . 3 6 8 m ) a n d H o u t B ay (R2.845m).
Evans says PropStats’ data is proving increasingly useful to estate agents and their principals because the up-to-date information helps them to prod u c e a c c u r at e c o mparat ive price analyses, which in turn counteract the prevalent tendency of sellers to price their properties far too high.
“The system covers an area from Vredenburg to Swellen- dam and incorporates data from about 2 000 agents. Properties are listed hour by hour as soon as the suspensive conditions on the sale are met.
“This is two to three months ahead of the actual legal transfer and is the latest information.
“The summaries make clear what trends are evident in each area, which again can be a useful sales tool.”
Training in the use of PropStats’ data is given regularly in two-hour courses at the institute’s Western Cape office at Howard Studios headquarters in Pinelands.
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