There has been sustained improvement in market activity across all price ranges in the Cape Town residential property market during April, according to Pam Golding Properties.
First National Bank's home-buying estate-agent survey for the first quarter of 2011 shows that there was a mild strengthening in residential demand, due to summer generally being a seasonally stronger period, and with the Reserve Bank resuming interest rate cutting in September and November.
Pam Golding Properties area manager Basil Moraitis says the Atlantic seaboard was among the top-performing areas in the region. According to Moraitis, sales have been strong in sectional titles since the beginning of the year, but April showed a marked improvement in the housing market.
“Our agents sold over 100 million rand in full-title properties on the Atlantic seaboard in April. It was also noticeable that a number of properties that have been on the market for an extended period, but which are offering good value, are starting to move again,” he says.
Another Pam Golding Properties area manager, Howard Markham, says there has been high sales activity in Cape Town's southern suburbs since the year began, with April seeing this trend continue.
“Rondebosch, and Newlands in particular, have seen high demand. Since the start of 2011 our agents have sold 14 properties in central Rondebosch at an average of about 3.2 million rand per home. Seven homes in Rondebosch Park Estate, averaging about two million rand per sale, were sold. Newlands has seen 13 sales average closer to four million rand,” Markham says.
Laurie Wener, the Pam Golding MD for the Western Cape metro region, says access to bond finance remains a challenge for buyers, particularly in the lower price brackets, and notes that April saw a high number of cash buyers in the Western Cape metro region. She adds that it will be interesting to monitor these trends into the winter months, traditionally a quieter period in the Cape Town property market.
“The one area where we anticipate seeing renewed interest regardless of seasonality is the western seaboard. The long-awaited opening of the Bus Rapid Transit route from Table View into the central city has cast a new spotlight on this area, making it particularly appealing for professionals and young couples wishing to work in the city while living closer to the beach,” Wener says. - I-Net Bridge