Cape Town - Upmarket property in Cape Town, from Constantia to Camps Bay, is in high demand - and so is property in relatively safe, previously disadvantaged areas.
Gary Grobbelaar, Seeff chief executive for the False Bay and south-eastern suburbs, said the lower end of the market continued to experience strong demand, especially in the more affordable price band from R500 000 to R700 000.
Banks and estate agents refer to houses priced between R500 000 and R750 000 as part of the "gap market".
But, in reality, affordability suggests the gap market is located below this segment. Grobbelaar said although there was a significant shortage of properties in the more affordable price ranges, this sector of the market is highly sensitive to economic fluctuation, interest rate and price increases.
"This sector also battles with qualification for home loans and, quite often, it is not just about poor credit records, but also about a lack of education in terms of how to go about getting on to the house ladder.
"First-time home buyers, especially, are affected by the poor economic climate and so if the government wants more of the previously disadvantaged to get into their own homes, it is going to have to encourage an economic environment focused on economic growth and job creation."
He said the high demand and short supply of properties in this sector of the market would probably continue driving prices even higher.
Lorenzo Jardine, franchisee at Rawson Property Group Grassy Park, said some trends in the area included family sales where owners wanted to keep the sale of the property in the family by selling to their children, and also where people were selling their properties in areas such as Mitchells Plain and Strandfontein to buy in Grassy Park.
Jardine said although sales in the area were normally quiet over the winter months, it had been good so far and had been better than last year, with property prices ranging from R850 000 to R1.4 million.
"We have a shortage of stock in Grassy Park at the moment. If a property does not sell in this market, then it is definitely overpriced. We have seen the development of two supermarkets on the main road, Shoprite and Pick n Pay which have recently opened. Older shops are being revamped and home owners are also upgrading their properties as well. Main Road, Grassy Park was once a quiet street, but now it has come alive, with people who frequently shop at the new and upgraded retail stores."
Charlton Williams, Pam Golding Properties area principal for Athlone, Goodwood and Belhar, said there was a high demand for rental in Glenhaven because of the close proximity to universities like the University of the Western Cape and the Cape Peninsula University of Technology.
He said the average prices of houses in the area started at just over R1m: "There is a shortage of stock. If properties are priced correctly, they stay in the market for less than 30 days.
"Glenhaven will continue to be an area that will attract the first time home buyer as well as investment buyers wanting to capitalise on the student rental opportunity. The area of Musicals in Belhar also offers buyers value for money, with prices ranging from R600 000 to R1.4m."
Cape Argus
REAL ESTATE: Houses in middle-to-lower income areas in the city could be in short supply, making gap housing difficult. Picture: Chanelle Manuel