Newlands - Sectional Title Market Update | June 2025
Category Market Update
I am very pleased to be able to recommence my regular newsletter that focuses on property matters in your particular part of the world.
My intention is not to simply provide a generic overview of the property landscape in the Western Cape or even on the Peninsula. Whilst of interest to a property owner, my intention is to mine deeper and to provide an analysis of what is happening, right now and where you own property.
For most of us, the property we own represents our single most valuable asset - for many, it is our only significant asset. Consequently, the value of that asset, how it measures up to the current market - and especially - when is the best time to obtain the greatest possible return on that investment is information that I believe to be of real benefit - as long as it has particular application to where you own that property.
You are the owner of a sectional title property is Newlands.
Therefore, this newsletter shall focus only on the sectional title micro-market of this particular geographic pocket.
Where appropriate, I shall reference the market dynamic at play in neighbouring suburbs.
THE CURRENT MARKET CONDITION
The Newlands market, this year, has one defining characteristic that has had several beneficial consequences for property owners in this area.
In short there is a distinct shortage of stock entering the market - very few properties are being listed for sale.
Many ask why this is so. There are any number of reasons for the short supply of properties going to market but, as a consequence, it has created a strong sellers' market.
In simple terms - supply is short and demand is brisk. As in any free-market environment, short supply drives demand and this tension between supply and demand drives price.
This is particularly evident in your area.
Buyers engaging in the current market have an awareness of the prevailing condition. An increased number of buyers have lost out on a property by being too slow off the mark to secure it or by being of a mind that an opportunistic or 'opening bid' offer is a good idea.
Serious, committed buyers have accepted that this is not the time for delay and that they need to act promptly and decisively should they wish to successfully purchase a property.
I have analysed the current market condition in your area for the first half of this year and then considered market performance over the same period of 2024. The result of this analysis speaks for itself.
In the first half of 2024, the average price paid - per square metre - for all sectional title sales in Newalnds equals R28 812 00.
During this period there were a total of 19 sales.
In the first half of 2025, the average price paid - per square metre - increased significantly to R41 054.00.
There has been just seven sales in this period.
Of interest too, is that the average time a property remained on the market before selling shortened appreciably.
- January - June 2024 - Average Time on Market = 104 days
- January - June 2025 - Average Time on Market = 22 days.
I should also note that during the 2024 assessment period, no property is recorded as having sold before listing.
However, during the 2025 assessment period, two of the Newlands sales brokered by me sold without having to list them.
Also noteworthy is the variable between listing price and ultimate selling price.
- January - June 2024 - difference between listing price and sale price = - 7.8%
- January 2025 - June 2025 - difference between listing price and sale price = - 3.9%
Yes, there were far fewer sales this year than last, but these properties have sold for considerably more and spent far, far less time on market.
Such is the supply/demand dynamic.
It is accordingly an especially good time to be a seller. If ever there was a time to be bullish about price, it is now.
I have not seen a market such as this since 2014.
A CASE IN POINT.
Montebello - Montrose Street
During April, I accepted a mandate to sell a two bedroom/two bathroom apartment at Montebello, a Newlands flagship.
I had recently listed and sold another unit at Montebello and had maintained contact with a buyer who had lost out - having made a low-ball offer. I was able to match that buyer to my new listing without the need to go to market.
This time, the buyer paid full asking price rather than to again lose out to a more determined buyer.
Sevenoaks - Main Street
Similarly and during May I was able to match a new listing at this most sought-after estate to a buyer already on my active data base. This buyer also purchased for full asking price - without me having to list the apartment.
Both properties came with hefty price tags.
This is the market in which precedents such as this are set and that can only benefit property values in the area generally.
It is also the market where an agent must foster relationships with buyers, fine-tune their precise needs, establish their financial well-being and keep them front of mind for when the agent receives the instruction to market the appropriate property. In this market, this is the secret to a prompt sale to a buyer who will pay a premium rather risk the loss of a desirable property.
FORECASTS
Predicting market behaviour is a lot like consulting a crystal ball - an array of variables and disruptors can influence the market, whether national or international.
It is so that we are well into the winter season where traditionally the market quietens. My opinion is that the usually quieter months, given that demand for properties still exceeds the supply, will be less felt than in past years and it shall remain a strong sellers' market.
Accordingly, I do not believe that one need wait until later in the year and for summer, to realise a very impressive sale price for your property.
For the time being, the tension in the marketplace strongly favours a seller and full advantage ought to be taken of this opportunity.
OPTIMISING THE MARKET CONDITION
To take full advantage of the current market condition, it is essential to interview and appoint a suitably qualified agent to be accountable for the sale of your property at the best possible price.
Critically, your agent of choice must have a proven track record in your area. Market knowledge is area specific. Effective selling in Newlands is an environment with unique influences. This is not a 'one size fits all'. Your agent must have demonstrable abilities in selling properties, comparable to yours - in your area. The volume of such sales will provide a seller with the assurance that the agent:
- Has a sound understanding of your micro-market.
- Has a stable of pre-approved, serious and vetted buyers who want to acquire property in your area.
- Has longevity as an active & knowledgeable property broker in your area.
Questions to ask a prospective agent:
- When was your most recent sale in my block/estate and in my area?
- Would you please provide me with a list of the last ten properties you sold in my area?
- How long did it take you to sell your last three listings?
- What was the level of interest in those properties?
- What is your average variable between listing price and sale price?
- Did the property list at a price recommended by you?
- What is the average time on market - your last ten properties?
- Would you please substantiate your recommendation for the listing price of my property?
- Do you have buyers that will want to see this property tomorrow if you list today?
The current market condition together with a seasoned, professional property broker with verifiable abilities and credentials will see a property sell very, very well indeed.
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Author: Sean Guy
