Sellers have to come to terms with the fact that they have to adjust the price of their property downwards (often considerably) every couple of month.
Buyers are spoilt for choice and procrastinate buying decisions in the hope that the market will contact further. Agents struggle to advise their clients correctly, as values keep declining, their advice given today is wrong and outdated in a month's time.
Some short facts:
- The average price for apartments in the City Bowl is R2 300 000
- Buying activity for entry level apartments up to R3 000 000 has increased by over 50% in the last 6 months
- Prices dropped by 25% since the beginning of this year!
- Values of Freehold houses has declined by 15%
- On average only 5 houses sell per month in the entire City Bowl
- The single main reason to put their property on the market for most high end sellers in to dis-invest in South Africa.
Cape Town's Atlantic Seaboard. Picture: Supplied
Bad news as well for the property owners along the ocean shore.
The number of transactions steadily declines, and not only in comparison with the last two years but even looking at the first two quarters of 2019.
The fact that only 11 houses sold on the Atlantic Seaboard (this is the entire strip from Green Point to Camps Bay, including the Waterfront) constitutes a new negative record.
Sellers are still struggling to adapt to today’s market, which is clearly shown in the difference of 24% between the asking and the actual selling price .
Sectional title units selling at an average value of R 3 800 000, which is in line with the values achieved in 2014/2015. The average value of R35 000 per square meter is now almost in line with prices in the City Bowl.
Only properties that are priced ahead of every competing product stands a fair chance of getting sold.