Rondebosch House prices and other property trends for 2021 and beyond
Category Market Update
Contrary to predictions following the Covid-19 hard lockdown last year, the second half of 2020 was characterised by buoyant activity in the housing market. This was driven by the historically low interest rate which saw the prime rate dropping from 10% in early January to 7% by the end of July 2020.
As a direct consequence, the dire predictions for the housing market did not materialise. Contrary to the expectation that sales volumes would decline drastically, and prices would "fall through the floor", the market surprised on the upside.
House prices did not just hold firmly, but in many areas appreciated further, especially in the lower price bands below R1,5 million. In the upper price bands, the average selling price did decline in 2020 compared to 2019, but often due to fewer high value sales which brought the overall averages down. In many instances, the market has recovered to the pre-pandemic level and with that the average prices.
After the "buyer frenzy" which characterised the second half of 2020, the 2021-year has seen a slowing of market activity and house price growth. According to FNB, growth peaked in the second quarter at 4.8%, but has declined to 3.5% in the third quarter to the end of September.
The outlook remains positive for the market. Even with an anticipated interest rate hike in November, the interest rate will remain at a historical low and will continue to drive buyer interest.
From a regional perspective, Western Cape and Cape Town prices achieved some of the lowest growth, ostensibly as Cape Town's prices are higher compared to other metros. Propstats data shows that while the average selling price for the Southern Suburbs initially declined in 2020 compared to 2019, largely due to a dip in high value sales, it has now recovered back to the pre-pandemic levels.
Cape Town remains popular for its excellent property market with demand coming from a variety of sources including semigration buyers from upcountry provinces.
At a local level, the Rondebosch area has seen phenomenal buyer interest and properties that are correctly priced are selling quickly. As a long-standing Rondebosch area specialist with 17-years' experience, Charmaine now holds a 50% market share of all sales in the area. It has in fact been the best year ever for Charmaine Scott-Wilson who has achieved the 4th highest sales nationally for the Seeff Property Group.
She is now in urgent need of more stock with plenty of buyers from Johannesburg wanting to relocate, all looking in Rondebosch. If you want your house sold, contact Charmaine urgently. Seeff's commission rates are competitive, and we will get your house sold!
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Author: Gina Meintjes
