Estate agents concerned by slow decline in Atlantic Seaboard property prices
Managing director at Seeff Atlantic Seaboard and City Bowl, Ross Levin said: “Sales volumes for both the Atlantic Seaboard and City Bowl remain down despite the expected uptick following the elections.
“It is largely the lower price bands which continue seeing the highest volume of sales - market is down by about 40% from the highs of 2016/17 about 15% from 2018.
“High-end sales remain especially slow. There is plenty of stock and sellers and prices are falling. Prices have come down and sellers are negotiating for the first time in years, thus creating opportunities for buyers to find more affordability in the market that has not been the case for many years.”
Levin said persistent weak economic fundamentals and market confidence were contributing reasons for the decline.
“The high transaction costs, most notably transfer duty, is also impacting on the demand for property. There is also still some concern about investing, hence many wealthy buyers are buying at much lower levels and possibly placing some of their money overseas rather than investing more in South Africa,” he said.
According to Seeff’s sales data from January to July this year compared with the same period last year, the total number of units sold fell to 88 from 97, a 9% drop. The total value of sales were R396037719 versus R433310000.
Levin said the market was overstocked and that new developments put pressure on the market overall. “That is not to say that new developments are not good for the market, far from it, it brings development and renewal to the area and creates more opportunities for more people to be able to live in such a high-demand area.
“The challenge is that just as many of developments which were planned and implemented when the market was on an upward trajectory have now unfortunately hit the market during a downward slope,” he said.
Rob Vanlierde, of Smook Properties, said: “In general, the property market has slowed down in Cape Town but it is particularly noticeable on the Atlantic Seaboard where property owners are used to seeing annual price growth of around 15%.
“However, it’s typical of the economic cycle to have decreases in property prices once in a while, and buyers will be happy that prices are finally now becoming more favourable to them.
“I think the decrease is mostly a result of sentiment towards government policies and uncertainty as to what the future holds regarding the economy.”@MarvinCharles17