The property market struggled in 2020, primarily as a result of COVID-19. In contrast, 2021 saw record sales highs, as data from Lightstone reveals that the market accumulated 37,432 transactions worth over R69,9 billion in 2021.
Seeff reports that 2022 has seen a shortage of properties across Cape Town's suburban areas due to buyers and tenants flocking to the suburbs. These properties generally sell within eight to twelve weeks. Still, one thing is clear: correctly priced properties are selling faster and achieving better prices (generally within 5% to 7% of the seller's asking price). This trend is welcome news for sellers.
Affordability is a top priority for buyers, reports Johann Groenewald, licensee for Seeff Goodwood.
Unfortunately, affordable homes are not always readily available, and the past year's Cape Metro sales reflected this; property prices in the area fell below R2 million and 40% were below R1,5 million. While many people flock to places such as Goodwood with the intent to purchase a home in the area, there are not always enough affordable properties for every eager buyer. Family homes with a flatlet that fall within the R1,7 to R2 million price bracket have also increased in popularity. There is also a growing demand for apartments in the R700 000 to R1,2 million range.
Among all this mass buyer interest, one apparent trend remains consistent: most buyers seek a neat, compact home with good facilities.
The rental market also received significant buyer interest with a high demand for well-maintained properties. Three-bedroom family homes have achieved rental rates of R12,00 to R16,00, while two-bedroom apartments bring in around R7,000 to R9,500 monthly. However, landlords must remain careful when pricing their property, as upfront costs and deposits can impact the attractiveness and affordability of rental properties and cause apprehension for tenants.
Sellers also face a similar challenge invoked by these current property trends, and setting a reasonable price for your property remains crucial to secure a sale. Properties can take six to eight weeks to sell, and sellers often need to compromise and settle for up to 10% less than their asking price. In reality, overpriced properties are not selling on the market, and sellers must enlist the help of a Property Practitioner to determine a reasonable asking price.
Demand is high in Century City's property market, reports Helga Clemo, licensee for Seeff Century City. The trendy neighbourhood, stunning surroundings and walkability are significant drawcards for buyers and tenants alike. Tenants are even flocking from Johannesburg and Durban to apply for rentals.
Many buyers also seek rental investments, with unfurnished properties in the area receiving high demand. First-time buyers generally seek two-bedroom apartments under R2 million; however, one-bedroom apartments achieved rental rates of about R11,000 per month, while two-bedroom units achieved rates of around R15,000. Three-bedroom apartments go for R18,000 per month.
Data from Lightstone revealed that Pinelands and Thornton in Cape Town's Southern Suburbs enjoyed a great 2021 year. Today, these areas continue to offer good opportunities for sellers.
"While there has been a reduction in buyers, there is still good demand and a shortage of stock," said Pauline Hareb, sales manager for Seeff Pinelands and Thornton
The proximity of the Old Mutual Head Office and Cape Town CBB to Pinelands and Thornton is a likely reason for the increased popularity of families moving into these suburbs. Thornton properties in the R2,7 million price band continue to sell quickly; however, of the two areas, Pinelands receives favour from working professionals and high-income buyers who boast two degrees on average. Four-bedroom family homes in the area that range from R3 to R4 million remain in high demand.
Landlords seeking prospective tenants can secure rental arrangements for properties in the R15 000 to R20 000 per month range. Apartment complexes achieved around R7000 - R9000 per month.
Do you own property in Cape Town suburbs that you want to market? Consider reading our blog for tips on selling your property.
Before you sell, you will also want to ensure that your home is in the best possible condition for potential buyers and that you achieve the best price. Here are some of the best home improvement ideas for selling your property.