Cape property market readies for an influx of buyers over the summer
Category Market Update
While the Southern Suburbs and Constantiaberg property market is "booming", we expect the market to pick up further as we head into the summer months.
The market has been particularly active post-lockdown as buyers look to take advantage of the favourable market conditions.
As they say, "local is lekker" and we expect a spike in visitors to Cape Town between December and January. It has been the toughest second quarter in recorded history for the country and South Africans will be looking to get out and have a break.
The ongoing concerns around international travel related to Covid-19, is likely to drive upcountry people to flock down to Cape Town. The dams are full, the mountain is lush and looking superb, and with a near-50 year low mortgage lending rate, Cape Town property will be in demand.
Mortgage originator, ooba, reports that the average deposit requirement is down to 8.6% on average for the third quarter, 25% down y/y and the lowest in a decade. The favourable mortgage lending conditions have resulted in some 63% of ooba bond applicants securing a home loan without needing to make a down-payment while 82% of applicants were successful in obtaining finance.
The South African Reserve Bank has indicated that the low interest rate is set to remain until late 2021 which will continue to support the buyer's market conditions. Buyers are taking advantage with first-time buyers streaming to the market. Other buyers are taking the opportunity to upgrade to a bigger property or better neighbourhood while investors are also again looking to invest in the buy-to-let market.
Based on activity over the last four months, we anticipate a busy period between December and February. If you are thinking of selling, you should use the next 4-weeks wisely by calling in a professional Seeff agent to value your home and get advice on how to best present your property to catch the wave of demand and secure a sale.
Home is our Story and property our passion. Our focus on sole mandates means we can sell our client's properties faster and achieve better prices. Secure your sole mandate today by contacting us for a valuation. We are only a quick click or call away.
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Author: Gina Meintjes
