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ENCOURAGING CHRISTMAS SALES ACTIVITY IN CAPE METRO MARKET

2012/01/30 12:00:00 AM

The month of December saw an encouraging upturn in sales activity in the Cape Town metropolitan region, says Pam Golding Properties’ MD for the region, Laurie Wener.  “Historically, the month of December has usually been somewhat quieter due to the shift in focus of both buyers and sellers towards family, friends and holidays,” she says.  “But in 2011, PGP’s Cape Town offices experienced a surge in activity levels right up to Christmas – mostly from local buyers.  There was also a substantial increase in the number of upcountry buyers acquiring holiday homes in the Cape, or purchasing property for the purpose of relocation or retirement.  Whilst international buyer activity remains muted, there was also a sprinkling of foreign buyers, most of them buying apartments for part-time residential use.  Across all buyer types, price categories and geographical areas, buyers were searching for good value, and many sellers adjusted their expectations accordingly.”

Sales activity most notable in coastal suburbs

Sales activity was noted in all areas of the metro region, but was particularly brisk along the Atlantic Seaboard, Wener says.  “We saw buyer interest across all price brackets, and in all suburbs from the V&A Waterfront, Green Point, Mouille Point and Sea Point to Fresnaye, Bantry Bay, Camps Bay and Clifton, as well as in Llandudno and Hout Bay.  These areas alone concluded nearly R200 million in sales during the month of December – a remarkably high figure for this time of year. 

Notable sales in this area included:

• R26 million for home in Bantry Bay, sold to an upcountry buyer
• R20 million for a house in Camps Bay, sold to a local buyer
• R8.2 million for a house in lower Llandudno

Suburbs of the Western Seaboard, including Blouberg, Tableview and their surrounds, saw buyer interest and sales activity predominantly in the sub-R3 million price range.  Most sales were for buy-to-live purposes, with a strong emphasis on security.  As a result, gated estates in Big Bay and Sunningdale were particularly sought-after, as well as the Sunset Links and Atlantic Beach golf estates.

Notable sales in these areas included:

• R2.925 million for a three-bedroomed unit in Milkwood, Sandown Estate (Big Bay), sold to a local couple who were upscaling
• R2.6 million for a two-bedroomed home in Tanglewood Crescent, Sunset Links Golf Estate, purchased by a couple downscaling from a large luxury home in Llandudno
• R1.5 million for a three-bedroomed home in Greyhawk, Brentwood Estate (Sunningdale), sold to a young local investment buyer

Also popular were the West Coast areas around Langebaan, as well as coastal areas on the South Peninsula such as Simon’s Town, St James, Kommetjie and Imhoff’s Gift.  “These areas all saw brisk walk-in trade and a high level of internet enquiries, mostly from Gauteng buyers wanting to acquire holiday homes at competitive prices,” says Wener.

Notable sales included:

• R5.45 million for a four-bedroomed home in Kommetjie, purchased by a Gauteng buyer for holiday use.
• R4.75 million for a three-bedroomed home in Kommetjie’s Klein Slangkop Estate, sold to a local couple for holiday use
• R3.5 million for a four-bedroomed home in Klein Slangkop Security Estate, purchased by a local buyer.
• R2.195 million for a three-bedroomed home with a swimming pool in Imhoff’s Gift, sold at full asking price after just two weeks on the market, to a South African buyer for use as a primary home.
• R2.15 million for a three-bedroomed home in Blue Waters Estate, sold by PGP in just 24 hours
• In the Southern Suburbs, the busiest sector of the market has been in the lower and middle price brackets, with families seeking affordable homes within range of the area’s highly-rated schools.  However there were some notable deals concluded in the upper price ranges, including:
• Two adjacent homes in Upper Claremont sold in December 2011/early January 2012 for over R8 million – one to a buyer downscaling from a larger home, and one to buyers seeking a convenient lock-up-and-go home
• Over R6 million for a four-bedroomed home in Upper Kenilworth, sold the day before Christmas to a young family returning from overseas

International tenants driving top-end rental market

High levels of activity were also recorded in the long-term rental market, particularly in the Southern Suburbs, City Bowl and Atlantic Seaboard.  Wener says a number of leases were concluded for family homes in the price range from R23 000 to R35 000 per month.  “Nearly half of these leases were concluded with international tenants,” she adds.  Lifestyle complexes in Claremont, such as The Quadrant, Montclare Place and Intaba, also proved very popular with young professionals.  A two-bedroomed apartment in one of these buildings can now achieve rentals of R8000 to R10 000 per month.

Return of interest in developments market

After a protracted period of low activity in the developments market, Wener says there was a small but significant increase in the sale of completed apartments in new developments.  This was particularly noticeable along the Atlantic Seaboard, where PGP sold five units in newly completed developments.  In Hout Bay, two apartments were sold off-plan at R2.5 million each, in the new development “1120 on Beach”.

“This level of interest and sales activity is extremely encouraging,” Wener concludes, “and bodes well for the year ahead.  We are hopeful that it marks the start of a shift in public sentiment towards a more positive outlook – so critical to all aspects of an economic recovery.  It would be most gratifying to see such an upturn germinating here in Cape Town, one of the world’s most beautiful cities.”

For more information, contact Laurie Wener on 021 673 4200 or laurie.wener@pamgolding.co.za.

**All prices quoted are actual selling prices, and all sales mentioned were concluded by Pam Golding Properties, unless otherwise specified.

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