Strong market for top end homes
"The result is not only more people having the income available to spend on larger homes, but also existing top-end property owners trading up for even bigger and more expensive properties. Despite the reported slowdown in the property market in general, Pam Golding Properties Western Cape metro region reports healthy activity in its top end sales."
Not only has the ceiling for this segment of the market stretched significantly, but the number of multi-million rand homes being sold remains high, with agents reporting plenty of interest and activity in this area.
Pam Golding Properties (PGP) regional MD, Mick Joyce, said it is not really surprising that the top end of the market is performing well, given the current economic climate.
"Despite the recent interest rate hikes affecting some segments of the property market, in general our economy is looking very good, with significant growth taking place in many sectors, including the manufacturing industry, retail and particularly construction.
"The stock market has also been performing well - a good indicator of the general health of our economy," said Joyce.
"This momentum is resulting in strong cash inflows into these sectors, and this in turn means that individuals within these industries have more funds available to invest in property, which is still seen as a sound long-term investment.
"The result is not only more people having the income available to spend on larger homes, but also existing top-end property owners trading up for even bigger and more expensive properties," added Joyce.
The companys sales figures for the month of May 2007 confirm this trend, indicating that prices in the upper segments of the market are apparently rising at a faster rate than the segment below.
They also indicate that the very top end of the market has stretched from previous highs of around 20 million rand or 25 million rand, to a point where the largest individual residential sales now top 30 million rand and more.
Some of the more notable sales achieved by PGP agents in the past three months include the price of 18.255 million rand paid for a home in Cliftons prestigious Nettleton Road.
Agent Basil Moraitis concluded this deal, as well as securing a price of R13.5 million for a vacant plot in the same road. Fellow Atlantic Seaboard agent Ingrid Hoaten secured 12.775 million rand for a home in Ravine Road, Bantry Bay, while agent Jodie Taylor secured 10.5 million rand for a property in sought-after Bakoven.
Similar activity was seen in the Southern Suburbs, with agent Myrna Duveen selling a two acre property in Bishopscourt for 20.5 million rand and a six-bed roomed home in the same suburb for 17.3 million rand.
Meanwhile on the Western Seaboard, agent Denise Schmidt has very recently achieved a record price of 16.5 million rand for a bungalow-style home on the Blouberg beachfront - the highest price ever paid in this area.
Article by: www.sundaytimes.co.za