Eager home buyers in Cape Town’s Mitchell’s Plain and Strandfontein are snapping up properties listed for sale within a month, and the strong demand is now leading to stock shortages, says Astrid Smith-De Gruchy, owner of top local agency RealNet Select.
“Many current buyers have recovered from financial troubles and suspect that home prices are set to rise. Consequently, they are keen to enter the property market as soon as their financial situation allows them to do so. On the other hand, sellers are no longer under financial pressure and selling decisions are now based on wanting to sell rather than needing to sell,” she explains.
The market has improved steadily since the end of last year and we have even received multiple offers on properties that were, in our opinion, slightly overpriced.
One reason for the sudden surge, she says, may be that many people take their aspirations under review during the Christmas break and act on resolutions in the first months of the new year. And that, combined with the current enthusiasm in the market, translates to quick sales, which we expect will start to drive prices upwards in due course.
Prices currently start at around R200 000 for basic two- or three-bedroom homes in Mitchell’s Plain and at R400 000 for two-bedroom units in Strandfontein. The mid-price range in both areas is now around R400 000 to R450 000 and Smith-de Gruchy says stock in this price category is in very short supply.
“About 80% of buyers are young couples looking for starter homes, and with combined salaries of about R16 000 per month and a good credit profile they qualify to buy homes in this price range,” she says.
The extent of activity in this bread-and-butter range bodes well for continued stability in the local property market.
Issued by RealNet.