Western Cape Market Prices Hold – Sotheby’s

The Western Cape property market is looking up according to a recent analysis by Sotheby’s International Realty South Africa. The analysis shows that while the residential property price ranger recorded a 35% drop in turnover for the Western Cape market for the first 6 months of 2008 – from R12b-R8b – and a 45% drop in units sold – from 7500 units to 4100 units – average prices actually increase by 19% - from R1,67m to R1,99m.

According to Barak Greffen, executive director of Sotheby’s International, this increase can be attributed to a large number of transactions in the upper segment of the market, and less in the lower market. This led the data to reflect an increase in prices.

Last year saw some hefty sales, the most significant being a R24m Clifton sale, R24m Granger Bay sale and a R23m Bantry Bay sale.

During the last 3 months of 2008 over 100 units of property were sold for R476m in the Atlantic Seaboard at an average price of close to R4m. This shows that there was still demand for property in highly sough-after areas.

Greffen finished by saying that savvy buyers have been waiting for the market correction to pick up the top-end properties from realistic sellers at market related prices, in order to gear up for the next upward cycle in the market.

The information in this article is courtesy of EngineeringNews (Western Cape property volumes down, but prices hold – Sothebys - 25 January 2009)

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