Unprecedented opportunities for Southern Suburbs sellers
Category Market Update
A number of key trends look set to shape the property market for the remainder of this year. The first is the interest rate and inflation. We have seen a number of rate cuts which has brought down the cost of mortgage loans and boosted buyer demand.
While there is some expectation of further rate cuts, the Reserve Banks has cautioned against this. Additionally, the latest inflation data shows an upward trend to 3.5% for July, from 3% in June. While well within the Reserve Bank's target range, it may put a hold on further rate cuts for now. Nonetheless, the current lower interest rate remains a boost for the market.
The second strong trend is higher demand this year within the Cape Town Southern Suburbs and Constantiaberg property markets in particular. Due to this high demand and sales volumes, stock levels have depleted considerably with some areas now facing a shortage of properties for sale, according to property specialists from Seeff.
This has created unprecedented opportunities for sellers, as buyers - both locals, and from other provinces - continue flocking to these sought-after neighbourhoods. The driving force behind this surge is not just a desire for a new home, but often a strategic move closer to the top-tier schools and access to a quality suburban lifestyle.
It follows that semigration remains a strong trend which is adding further demand to the market. Additionally, we continue seeing demand from international buyers from the UK, Germany and other European countries looking to invest in property, or relocate to the country.
A strong trend is that there are now unprecedented opportunities for sellers in the market, and this is likely to continue over the next few months as the warmer months tend to be busier for the market. Sellers are achieving excellent prices, and properties are selling quite fast.
The rental market also continues trending with sustained demand. According to information from PayProp, vacancy rates remain very low while landlords continue seeing inflation-topping rental growth. This in turn has boosted opportunities for rental investors.
Overall, price growth in Cape Town remains a strong trend, underscoring the confidence in the property market. This trend is no doubt set to continue, save for any economic shocks which might impact the high levels of demand in the market.
Overall, we expect the market to continue the strong demand, creating unprecedented opportunities for those looking to sell right now. If you are thinking of selling, we recommend that you work with a local area specialist with a track record of success to ensure you are able to achieve the maximum outcomes in the current market.
If you would like to know what your property might sell for in the current market, feel free to contact Seeff for a free assessment.
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Author: Gina Meintjes
