Rondebosch - One of the best property years as we head into a positive 2022
Category Market Update
Welcome to 2022! Our best wishes for a prosperous and healthy year to you and your loved ones!
The pandemic aside, we enter 2022 on a positive note for the property market, albeit remaining mindful that we are still operating in uncertain times.
We are delighted to report that 2021 was one of the best property years for the Southern Suburbs and Constantiaberg market. It was a year which demonstrated the resilience of the market which recovered to pre-pandemic levels with many areas reporting some of the best sales in over three years!
At a local level, the Rondebosch property market enjoyed the highest level of sales in three years ending the year with 86 full title sales at a combined value of R465,848,000. This is almost double the transactions for the 2020-year and amounts to a full recovery back to the 2018-levels.
While the majority of sales were below R5 million, some 37% were concluded above this price benchmark including nine sales above R9 million with the three highest prices paid of R11.5 million, R12.5 million and R13 million.
Seeff is delighted to report that our local specialist, Charmaine Scott-Wilson again achieved the highest market share with 30 sales including three transactions above R9 million. She attributes her success to decades of experience and her dedication to the market and working with sellers and buyers to ensure successful transactions.
The average selling price for a full title property in Rondebosch was R5,416,837, about 15% up on the 2020 selling price of R4,602,761. This is largely due to more high-value transactions which resulted in a higher average selling price.
When it comes to asking prices, the average difference between these and the ultimate selling prices ended the year at 10.5% which is slightly better than the prior year. Properties are taking slightly longer to sell though, spending on average about 16.7 weeks on the market.
Seeff's outlook for the year remains positive despite the interest rate hiking cycle which has been in effect since late last year. The expectation is that the rate may climb by about 75bps this year. Event with that, it will still remain below the pre-pandemic level and will continue to serve as an inducement for buyers.
That said, sellers will need to continue focusing on market-related asking prices to achieve sales success. Rondebosch remains one of the most in-demand areas and always in need of well-maintained family homes to meet buyer demand. Aside from the convenient location, the phenomenal access to schools and the University of Cape Town remain strong selling points for the suburb.
While we must remain mindful of the potential impact that the ongoing pandemic and weak economic growth outlook may have on the market as we progress this year, last year's performance again showed that Rondebosch property is an excellent investment.
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Author: Gina Meintjes
