Mid-year market update - people are purchasing in Rondebosch, great news for sellers
Category Market Update
While not impervious to the impact of the Covid pandemic, lockdown restrictions and seasonality, the residential real estate market continues to be a positive story in the economy.
FNB's mid-year property trends show that after some acceleration in house prices during the latter part of 2020, the bank's House Price Index has a recorded a slowdown in growth to 3.7% year-on-year, down from 4.2% in May as the initial "buyer frenzy" cools slightly.
Nonetheless, the bank says liquidity in the market remains intact and activity is still at the best levels in three years as buyers and sellers continue to take advantage of the favourable market conditions. Bank data also shows that mortgage lending is at the highest levels since 2007 while the deposit requirements are at the lowest.
The interest rate looks set to remain low, but a rate hike could come in the latter part of the year although it is expected to be fairly benign. The CPI has improved to 4.6% in July, down from 4.9% in June and 5.2% in May, some good news for the interest rate, although it is still above the mid-point in the Reserve Bank's target range of 4%-6%.
From a local market perspective, the Rondebosch area remains one of the most high-demand neighbourhoods in the Southern Suburbs and activity continues unabated as buyers look to make the most of the favourable buying conditions.
Propstats data shows about 49 full title property sales recorded across the entire market (all agencies) in Rondebosch for the year to end-July. 54% of all sales were under R5 million with the balance of 46% above R5 million ranging to the highest price of R13 million.
Seeff's area specialist, Charmaine Scott-Wilson outperformed the general market by achieving 45% market share and selling 22 properties priced up to R7,3 million and two sales of R9 million each, thus selling almost half of all properties in Rondebosch this year. Most other agencies achieved just 2%-8% market share with only one reaching 23%.
The market has been very busy for Seeff this year. While many sellers are scaling down from their large homes and moving out of the area, we are seeing an emerging trend of younger buyers' upscaling and wanting a bigger house with a study and a location closer to schools.
The data demonstrates that choosing a Seeff agent makes a significant difference for sellers. With buyers able to view, it is a great time for sellers. A Sole Mandate is always the best way to go if you are serious about selling, but be sure though to choose your local Seeff area agent to get the best advice and insight into the local market backed by over fifty years' experience in real estate.
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Author: Gina Meintjes
