In the area 1 Cape
Those property analysts who are looking for signs of an upturn in the Cape residential market will probably have to wait another six to twelve months, says Annette Evans, Manager of the Western Cape Institute of Estate Agents PropStats (property statistics) Division.
The latest collated figures from the Western Cape, said Evans, show that despite many gloomy reports the average value of a Western Cape home, sold by one of the 2 000 registered estate agents who provide data to our service, has risen from R1,4 million in 2008/2009 to R2 million (R2 050 000 in 2009/2010. (The Institute works on a year-end of 30th April.) However, we saw no further significant rises and the average price of a home sold by our agents stuck at just over R2 million (i.e. at R2 057 000). Nor did the total sales value for the period (around R3 billion) show any real change.
One reason for the change in the averages from 2008 is that more agencies captured their sales. These did raise the averages in the Western Cape but do not necessarily indicate increases in any particular suburb, said Evans.
Right now, said Evans, the 20% of properties on the market as a result of their owners being distressed, has lowered average prices, but, she said, she agrees with Anton du Plessis of Vineyard Estates when he points out that the serious lack of zoned land for expansion in the Cape Peninsula will ensure that residential property here will rise in price ahead of the market.
Du Plessis has shown that Cape Peninsula property - and I would add Helderberg property - is valued at ± 25% above similar property in Gauteng. The Cape has always been able to generate high values and this trend will not change. Indeed right now we are still seeing a steady movement of Gauteng buyers to this area.
Evans also agrees with the FNB economist, John Loos, who has recorded that nationwide activity in low cost housing, i.e. in the R300 000 to R800 000 bracket, is now very definitely on the increase for the first time in several years. A movement in this market, said Evans, has a definite push-up effect 12 to 18 months later on the higher bracket prices and it would, therefore, be reasonable to expect to see this happening again within that time period.
Appealing to the small minority of agents who still do not work with PropStats or who give late data, Evans said, All agency administrators who notify us that they have captured all their finalised sales onto PropStats, by the deadline, put themselves in line to win the prize of a weekend away for two at Shelley Point Hotel, http://www.shelleypointhotel.co.za/ which has been kindly donated by the hotel.
Those who are affiliated to the property profession and are interested in retrieving this data themselves can contact Annette Evans in order to discuss membership to IEASA by email email@example.com or calling the office on 021 531 3180.
Article from: www.propstats.co.za