Hillcrest market ‘holding its breath’

Negative property market conditions have caught up with Hillcrest and the popular KZN town is now in a period of consolidation.

That’s the news from Clint Ellice, principal of the local Chas Everitt International branch, who says there has been a distinct drop in sales prices over the past six months, with freehold homes now selling for R1,2m on average, down from R1,5m in October.

“But my impression is that they will not fall much further and that Hillcrest is now holding its breath, waiting for the market to turn upwards,” he says.

“New development and refurbishment have definitely fallen off and this will help to underpin the prices of existing properties as any oversupply is mopped up.”

And it will be absorbed, Ellice says, because there is still good demand, especially from buyers who would like their children to attend one of the many outstanding schools in the area. “Black diamonds are also beginning to make more of an impact on this market and demand for retirement accommodation has also remained fairly strong.”

He also anticipates that the completion at the end of this year of the large-scale work on the main road leading into Hillcrest will give the local market a boost as it will make Hillcrest much more accessible.

He adds that show house attendance has also increased despite the strict bank lending protocols being exercised by the banks and that the quality of buyers currently in the market remains high.

Meanwhile, his agency along with another Hillcrest agency has secured the sole selling rights on an eight unit development in the Waterfall area. Plots here are being offered to the market for R320 000. Buyers also have the option to design their own home. A ready-built, 270sqm home is also on sale at R1,75m including transfer fees.

Article by: www.chaseveritt.com