Slow down for demand in residential property not so severe in the Western Cape

PropStats’ data from the Western Cape Institute of Estate Agents of South Africa have indicated that the much-publicised slow-down in the demand for residential property in South Africa has, by and large, not been nearly as severe in the Western Cape as some reports might have suggested.

PropStats’ figures, which says the division’s manager, Annette Evans, show that in October just under R1 billion (R951,675,000) of property was sold at an average price of R1,046,527. This was 13,7% off the list prices and the average time achieved for a sale was 97 days.

“These figures,” says Evans, “compare well to those of October 2009 when R1,156 billion worth of property was sold at an average price of R1,956,452 (10,4% below the list prices). It would seem, therefore, that we are working through the so-called recession fairly successfully. Now that we have had a further drop in interest rates, an upswing is likely in March/April 2011.”

PropStats’’ figures also show that Atlantic Seaboard prices at an average of R4,301,070, although a staggering 25% below the asking price, were by far the highest in the Cape, confirming reports that this area is undergoing something of a boom. The Atlantic Seaboard was followed by the City Bowl, with an average price of R2,874,538, Constantiaberg (R2,368,444) and Hout Bay (R2,845,000).

The PropStats’ data, says Evans, is proving increasingly useful to estate agents and their principals because the truly up-to-date information helps them to produce accurate comparative price analyses, which in turn counteract the always prevalent tendency of sellers to price far too high.

“The strength of our system lies in the fact that it covers an area from Vredenburg to Swellendam and incorporates data from some 2000 agents. Properties are listed hour-by-hour as soon as the suspensive conditions on the sale are met. This is some two to three months ahead of the actual legal transfer and really is the latest information available. Furthermore, the summaries make it clear what trends evident in each area, which again can be a very useful sales tool.”

Training in the use of PropStats’ data is now given regularly in two hour courses at the Institute’s Western Cape office at Howard Studios headquarters in Pinelands. The next course will be held at 2.30pm on Tuesday 7th December and is available for R50 to members of the Institute and for R100 to those who are not members.

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