Oranjezicht, Higgovale much sought after

City Bowl sellers cash in on strong demand

CITY Bowl sellers have plenty of reason to smile, with prices still climbing, according to Seeff ’s agents for the area.

“Sales are still taking place within about one to two months and sale prices are only about 5 to 6 percent less than listing prices. The average selling prices in most areas are also up on 2015 – up to R4m higher in Higgovale and R2.2m in Oranjezicht,” say Colette Jackson and Michele Apperley.

“It is still very much a sellers’ market here. Activity remains fairly on par, perhaps only slightly down compared to last year.

“Oranjezicht has been particular busy with 29 freehold houses already sold this year at an average price of R9.505m, a significant R2.2m higher than last year’s average. At least 10 of the sales were priced above R10m. Houses have also sold for within a remarkable 34 days on average and at price discount of just 6.2 percent.”

In neighbouring Higgovale, 13 freehold houses were sold at an average price of R14.061m, which is almost R4m higher than last year’s average. And, most of the sales have been above the R10m price band. Properties have sold for on average within 30 to 60 days from listing and at an average price discount of 10 percent.

Although Oranjezicht and Higgovale are attracting higher prices, the agents caution sellers against unrealistic pricing.

Tamboerskloof meanwhile has already had 15 freehold house sales this year, at an average price of R8.487m, only marginally up from last year’s average of R8.318m. Most of the sales have been below the R10m price band. It is the only suburb in the City Bowl where sales are taking longer than two months on average and the price discount is around 11.5 percent on average.

Another very busy suburb is Vredehoek where 21 freehold houses were sold at an average price of R5.337m, up by about 14 percent from 2015. Most of the sales have been below R5.5m as the suburb continues to attract buyers for its affordability and trendy lifestyle, according to Doris Ricketts and Michael Hauser.

In neighbouring Gardens there have been 16 freehold sales at an average price of R5.849m, which 31 percent higher than last year’s average. Almost all of the properties were sold within a month of being listed and at an average price discount of 5.4 percent.

Devil’s Peak remains a very small slice of the City Bowl pie with just two sales at an average price of R3.425m.

“Vredehoek and Gardens continue to attract buyers wanting to get into the City Bowl, below the R8m price range,” say Ricketts and Hauser.

The agents say there is still a severe shortage of stock. At times, there is nothing to show buyers. Ricketts and Hauser say this is especially relevant in the R5m to R12m price range.

“This is also the price sector where sellers are likely to see quicker sales and achieve better prices. Some sellers are even getting more than their listing prices right now.”

Character homes with good flow, a garden suitable for young children and with views are especially in demand. Jackson and Apperley say larger family homes with three or more bedrooms and parking are also in demand.

“The flip side of the market here is that buyers should think twice before walking away from a deal as they may not find the same property at the same price. So, even if you have to pay a bit more right now, the odds are that you won’t overcapitalise as there has been no drop in values,” say Ricketts and Hauser.

This Higgovale home was recently sold for R16.5 million.