Sellers losing out as they wait for foreign buyers

Homeowners who are postponing their property sale plans now in the hope of achieving higher sale prices during the Soccer World Cup are not doing themselves any favours.

So says Willie Steinmann, owner of the new Chas Everitt International office in Melkbosstrand on the Cape’s western seaboard, who notes that demand for homes in the village and in the nearby Atlantic Beach Golf Estate has increased substantially in the past six months.

“However, many owners here who intend selling are missing out on this surge in interest because they’ve decided to wait until the World Cup to put their properties on the market. Indeed, we already have a shortage of stock to offer buyers in the most popular price ranges.”

The trouble with this approach, he says, is that the buyers who are currently really keen are quite likely to go elsewhere if they cannot find homes to buy in Melkbos – “and, speaking realistically, they are unlikely to be replaced by a wave of foreign buyers falling over themselves to pay higher prices during or immediately after the World Cup.

“In addition, any delay in placing a property on the market means increased holding costs for the owner and finally, there is a strong possibility that interest rates will start rising again later in the year, making it more difficult for any buyer to qualify for finance.

“In short, home sellers who hang back now are short-changing themselves.”

Steinmann says that most of those currently seeking to buy in the village proper are targeting properties in the R1,4m to R2m range, while those looking to buy in the golf estate are willing to pay between R1,6m and R2,5m – and that any homes in these categories that are perceived to be well-priced and offer good value are being taken up very quickly.

Also very popular, when available, are homes in the neighbouring Duynefontein area, where prices start at around R1,2m for a three-bedroom, two-bathroom house on a large stand, and range up to around R1,8m for a renovated property.

“There is far less demand,” he says, “for the luxury homes in the village priced at R4m and up.

“As for flats, there are quite a number available now at prices from R650 000, and we recommend these to investors as there is always good rental demand in Melkbos, and extremely limited opportunity for new development because of the Koeberg restrictions.”

Article by: www.chaseveritt.co.za