2009/01/28

A recent analysis of the regional industry figures proves that not all is doom and gloom in the Western Cape housing market.

So says Barak Geffen, executive director of Sotheby's International Realty South Africa, who adds that whilst the RPPR recorded a drop in turnover for the entire Western Cape property market for the first six months of 2008 of 35% to R8bn from R12bn for the first six months of 2007 and a drop in units of 45% from 7500 units to 4100 units, average prices for the entire region actually increased by 19% from R1,67m to R1,99m for the same period.

This is partially attributable to a larger number of transactions in the upper segment of the market and less in the lower segments of the market, skewing the data to reflect an increase in price.

Some of the bigger sales that were recorded include The One and Only in the waterfront for R110m in December, R24m in Clifton in November, R24m in Granger Bay in September, R23m in Bantry Bay in October and R18m and R20m in Camps Bay since October.

"There are still a lot of buyers in the marketplace and qualified sellers should not be put off marketing their homes due to the negative sentiment that is being expressed in the media," says Barak.

"Astute buyers have been waiting for a market correction to pick up top end properties from realistic sellers at market related prices in order to gear up for the next upward cycle in the market."

During the last three months of last year, over 100 units of property were sold for R476m in the Atlantic Seaboard at an average price of close to R4m, showing that there is still demand for property in highly sought after areas.