Fifty percent of Northern Suburbs sales are cash driven
Rodney Hayter

CAPE TOWN (August 28) - Up to 50% of buyers are now paying cash when purchasing properties in Cape Town’s northern suburbs, according to a RealNet company media release.

Mariana Vercueil of the local RealNet office reports that the property market in the area is livelier than in months. “But the most surprising element is that we are seeing droves of cash buyers – people who evidently see property as a good buy and prefer to invest in bricks and mortar rather than in stocks and bonds.

“And in the current market cash is of course king – people who can pay cash are in an excellent position to snap up bargains and to negotiate lower prices.”

She says sellers have come to appreciate how much easier a cash transaction is ”and we have facilitated several deals where sellers accept a slightly lower cash offer in preference to a higher offer subject to bond finance”.

Vercueil adds that the northern suburbs market is also benefiting from the interest of buyers who are taking advantage of the downward pressure on prices in order to upgrade to bigger and better properties.

“A fair number of buyers are also relocating from elsewhere in SA and due to RealNet’s wide exposure on the web, quite a number of purchasers are enquiring from other countries as well. Areas such as Plattekloof and surrounds, Goodwood and Parow are popular because of their good access to major routes, the CBD, the international airport, schools, shops and medical facilities,” she says.

Property prices are another draw card. Vercueil says bachelor and one-bedroom apartments are still available from about R400 000 while basic family homes can still be found at the R700 000 mark in Parow and Goodwood and there is good demand for these.

“But the biggest demand currently is for luxury property that is in the price range of R2,5m and up. The middle segment of our market, where prices range between R1m and R2m, is quiet at the moment and there is ample stock in this range.”

Article by: www.rodneyhayter.com