Sectional Title Market Review - Claremont Upper
Category Market Update
Since the beginning of the year a total of just five sectional title sales are recorded by PropStats in the Claremont Upper area.
These occurred at:
- Clarepark. This 94 sqm apartment sold for R2 850 000
- The Herschel. This 133 sqm apartment sold for R5 450 000
- The Herschel. This 73 sqm apartment sold for R2 900 000
- Doncaster at Marlborough Park. This 82 sqm apartment sold for R2 150 000
- Lindisfarne. This 96 sqm apartment sold for R5 000 000
Total sale value: R16 200 000
Average time on market in respect of these sales equals just on 81.4 days.
Of interest is that the sales recorded for the same period during 2018 number seven with a total sale value of R34 730 000.
Average time on market in respect of these sales equals just over 46.6 days.
Taking these statistics into account it is clear that:
- Volume of sales has dropped quite significantly.
- Properties are taking considerably longer to sell
- The variable between listing price and ultimate sale price has widened quite considerably.
The question to be asked is what saw buyers select the five recorded sales set out above from the 40 sectional title properties that went to market in Claremont Upper this year.
An emotional engagement, a connection with the property and the block is a factor, but the primary driver is one of price and naturally - the appointment of an astute agent who has a keen ability to interpret the market
The four sales this year are of properties that were sold by sellers who had accepted that implicit in a decision to sell was the awareness that the current market dynamic would ultimately determine the value of the property. In short, these sellers acknowledged that in order to sell (at any time), the property must be positioned (as to price) within the context of the prevailing market condition.
A simple analogy is one of going fishing. At any one time fish in a pond are swimming about but at a particular level. If the fisherman drops his baited hook to a level where the fish are not;
- He will receive no bites (or even nibbles)
- He will become frustrated.
- His bait - even the tastiest of morsels - will suffer the ill-effects of being in the water for too long!
In our current market, where there are fewer fish and a significant number of fishermen, it is critical that the hook be positioned where it will come to the attention of all fish with an appetite and that the hook offer an irresistible piece of bait.
In a strong sellers market, the pond is full of fish - on all levels - who will jostle for position to snap up the bait, any bait that is tossed into the water.
Now that the elections are behind us and very little has changed, we can confidently anticipate more buoyancy in the market and a restoration of buyer confidence. More fish are likely to become hungry. We must however be mindful that there will remain a lot of fishing lines in the property pond and pricing together with astute marketing shall remain of pivotal importance.
Yes, prices may have levelled but they have not dropped significantly (and certainly not below the unprecedented and wholesale capital appreciation achieved during 2014. The fish have not gone off food, they have simply become far more fussy given the range of choice.)
Seeff has traded through the first half of this year and emerged having sold more properties than our competitors across all areas. I believe these statistics plainly speak for my abilities and sound understanding of the market dynamic:
- I have a 50% market share in Kenilworth Upper, Claremont Upper and Newlands. Half the sectional title properties sold in these areas this year were sold by me representing Seeff.
Now, more than ever, is the time to entrust your property to a professional with a proven track-record with whom you can have a frank conversation and from whom you can obtain a straightforward, honest appraisal without empty promises and/or the delivery of false hope & unachievable expectations.
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Author: Sean Guy | Seeff Southern Suburbs
