Somerset West property market emerges from recession as buyers take out cash

THE SOMERSET West property market is emerging from the recession hangover, with demand for homes for sale and to let, now beginning to outpace supply, according to Seeff ’s Somerset West manager, Loretta Diab.

“Fol l owing t h e r a t h e r depressed market conditions of three to five years ago, we have seen a noteworthy improvement in buyer enthusiasm and sales in the last year, to the extent that our agents are now battling to meet buyer and rental demand,” she says.

“Driven by growing buyer confidence, sales have strengthened year on year over the last few years. In 2009, 967 properties worth just over R1.2 billion were sold. By last year, there were 1 387 sales worth almost R2.2bn – 43 percent up in sales and 83 percent up in value.”

Although demand is still predominantly in the R1.5 million to R5m price range, Diab says there is a resurgence in i nterest i n l uxury homes priced at about R7m to R8m. Seeff recently sold R50m worth of property in one month, including a R7m luxury home in the Erinvale Golf Estate.

Diab says that cash deals are also on the increase.

“About half our buyers have been new entrants into the area, many of them moving here from other provinces, especially Gauteng. This has obviously boosted the sales and rental markets.

“There has been an influx of buyers into the village, but locals also continue to buy homes in the area according to t heir l i f estyle needs. The relaxed country lifestyle complemented by top-class facili- ties and amenities, and the proximity to the winelands, beaches, city and airport, are big drivers of the demand.

“Families especially find the village an ideal environment. The surrounding mountains and vineyards make it a scenic residential area and the quality of life and convenience is hard to beat,” she says.

“Somerset West offers a wide range of property options, f rom entry l evel f l ats and starter homes priced from R1.1m, to comfortable threebedroom family homes priced between R2.5m and R3.5m, there is something for everyone. Luxury homes – often with views as far as the False Bay coastline – are priced from R6m to around R30m, for a historical homestead on an 11.4ha estate.

“There are also a number of lifestyle and golf estates in the village with architect-designed homes priced from R7m to around R22m to R29m for an exclusive Erinvale Golf Estate home. Also popular are retirement homes and, here too, there is a range of options.

“Conditions have improved markedly for sellers as buyers are prepared t o pay better prices, often quite close to the listed price, although we have not yet seen any price bidding. A notable benefit for sellers in the area is that most of the estate agents form part of a multi-listing service. Although it is difficult to predict whether the buoyant conditions will persist in view of the uncertain economic environment, for now at least, sellers can take advantage of the favourable selling conditions,” says Diab.

Call Diab on 021 851 4141 or visit www.seeff.com.