Weekend Argus (Saturday Edition)
Low rates see active festive season, with renewed interest from foreign buyers
DURING the peak summer season from November to January Pam Golding Properties (PGP) reports high sales turnover in the Cape metropolitan area, especially the Atlantic seaboard and City Bowl.
Encouraging signs include fresh interest in residential developments and long- term investment purchases, as well as some renewed activity from foreign buyers and returning expatriates. In total, PGP agents in the Cape Town metropolitan region sold more than R530 million worth of property during this 12- week period, says PGP’s managing director for the Western Cape metro region, Laurie Werner.
“Demand was spread across all areas of Cape Town and across all price brackets, especially properties priced up to R20m. The sustained low interest rates have definitely improved market sentiment, and the perception of an easing of banks’ lending criteria has also brought more mortgage- dependent buyers back into the market. This is good for sustained activity, and bodes well for the market in 2013.
“Sales activity has been steady in most areas, and there is a shortage of stock in the R800 000 to R8m price bracket. If the level of demand persists, this shortage should start to push prices up.”
The Atlantic seaboard, City Bowl and West Coast were by far the busiest trading areas for PGP over this period. In the Atlantic seaboard and City Bowl, PGP agents sold 69 properties worth more than R335m.
A further R65m in additional sales are awaiting finalisation. The Clifton, Sea Point, Bantry Bay and V&A Waterfront flat market was particularly busy, with notable interest from Gauteng- based buyers looking at holiday homes and business pads in the city. PGP’s area manager Basil Moraitis s ay s t o p s a l e s i n c l u d e d : R16.872m for a flat at Palgrave in the V&A Marina; R15m for a flat in Heron Water, Clifton; R13m and R11.8m for two houses in Fresnaye; R12.45m for a Clifton house; R12.337m for a flat in Bantry Place, Bantry Bay; R10.7m for a Camps Bay house; and R10.3m for a house in Higgovale.
On the Atlantic seaboard there was renewed foreign interest in completed new developments such as The Odyssey and Legacy, both in Green Point.
“Although it is still a very value- driven market,” says Wener, “buyers do seem prepared to pay a slight premium for a brand new modern flat. This in turn is encouraging developers to start bringing new projects to life, including residential and mixed- use developments.”
Other areas experiencing more sales over the festive season included the South Peninsula, particularly Fish Hoek and Noordhoek, with buyers looking for permanent, retirement and holiday homes. There was also a significant increase in demand along the West Coast from Blaauwberg to Velddrif. Buyers here included holiday users and permanent residents, many from Gauteng, attracted by the value for money.
Although economic condit i ons remain challenging, Wener believes many buyers have now adjusted to the prevailing recession.
“The result is that they are beginning once again to focus on their changing property needs, and to acquire new homes and i nvestments,” he said.