Newlands market update and a few important pointers for sellers
Category Market Update
By now, you are well aware of the impact of the persistent weak economic climate on the property market, particularly as it manifests in a notable slow-down in price growth and weak buyer demand.
An important take-out thought is that it does not mean that there is no activity in the property market. While transactions are fewer and buyers are hesitant, we are still concluding excellent transactions.
An overview of sales recorded on Propstats for the January to end of July 2019 period shows that in the Newlands area, 35 full title sales at an average selling price of just over R7,7 million were recorded. Although more than half fall in the R4m-R8m price band, 15 transactions (just over 40%) were concluded at prices ranging from R8,1m to over R10m and a highest price of R21m for a large 600sqm house on a 1061sqm plot.
Properties take a bit longer to sell, spending on average 110 days on the market and sellers have had to reduce their asking prices by around 9.7% although some have had to offer even higher reductions.
In the Westerford area, 6 full title sales have been concluded at an average selling price of R4,45 million with transactions ranging from R2.9 million for a semi to R5.6m for a four-bedroomed house. The highest price achieved is R13 million for a block of flats on a 945sqm plot. Properties spent around 63 days on average on the market and sellers have had to reduce their asking prices by 12.2% to conclude a sale.
We also highlight a few important pointers for sellers in this market as:
Choosing the right agent - at a time when the market is a challenge, it becomes especially important to partner with a local area expert who will give you the right advice, rather than waste your time with high price promises.
Sole mandate - it has been proven time and again that awarding a mandate to multiple agencies does not bring more buyers or better offers. Rather, awarding a sole mandate to the right agent has shown that it results in faster sales and higher offers.
Presentation matters - ensure your property is in the best possible condition and leave nothing to chance. In a market where buyers have access to a choice of properties, often within the same price range, it is vital that they perceive your property as offering good value for the price.
Pricing - increased stock levels means more competition for sellers which makes accurate pricing vital. Buyers use the property portals to compare properties of similar pricing and if your property is priced above similar properties, you risk being overlooked by serious buyers.
Considering offers - at a time when there are fewer buyers and more properties to compete with, it becomes important not to let a serious buyer slip through the cracks. Consider all offers and open the door to negotiation. A serious buyer will generally come back with a counteroffer.
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Author: Gina Meintjes
