Woodstock, Observatory property shortages favour sellers
Category Market Update
As with most of Cape Town, the suburbs of Woodstock, Salt River and Observatory (Obs) are currently experiencing a shortage of properties for sale which has now given sellers the edge in the market, says Craig Algie, a property specialist with Seeff.
There has been a clear shift in the market from a buyer to a seller's market with lots of first-time buyers, and well-priced properties selling quite quickly. Driven by the convenient proximity to the CBD, yet offering better value for money, these neighbourhoods have seen strong growth in recent years.
Sales data shows that transactions over the last year have been on par, and still higher in the case of Woodstock compared to the pre-pandemic period. Propstats shows almost half of all properties have sold within a month, and some within a week or a day of listing.
With the exception of a few outliers, sellers have achieved on average about 5-6% below their asking prices. More than half achieved even closer to their asking prices with some even getting their full price. Accurate pricing though remains the key to success, says Craig.
There has been a good mix of sales between freehold and sectional title including resales in the new developments in Woodstock (Upper East Side, The Iron Works, WEX, Woodstock Quarter and Harbour View). While the R1.5m to R3.5m range has been most active, prices of up to R5.8m in Walmer Estate and R5.9m in University Estate have been achieved.
Regarded as some of the trendiest in the city there is strong demand for sales and rentals. Almost 40% of recent buyers are young professionals, students, and first-time buyers. The recent interest rate cuts have encouraged more buyers to get into the market, but buyers are having to move reasonably quickly to secure a property.
The development of the new Riverlands precinct and Amazon headquarters is another major boost for this area. This R4 billion project is creating thousands of jobs and driving demand for residential and rental properties among young professionals seeking to live close to work. Its mix of offices, retail, and apartments is cementing the area as a prime investment location.
The market is particularly favourable for those looking to sell right now with high demand for cottages with 2-3 bedrooms and a small outside area in the R2m-R3m range. Buyers looking to upgrade are looking for 3-4 bedrooms in the R3m-R4m price range. Investors are looking for properties which offer good rental returns.
Working with the right area specialist delivers the best results. Craig Algie from Seeff offers 17 years of experience with a track record of success, and 15 sales over the last year alone. He knows the area, and is a consistent performer, trusted by sellers and buyers alike for negotiating the best possible outcomes.
His commitment and knowledge are unmatched, and he understands the market and what buyers and investors are looking for. If you are thinking of selling, he recommends not to hesitate, or you may just miss out. Feel free to contact Craig for a free assessment of what your home could sell for in the current market.
Contact Craig Algie on 082 412 6683 or craiga@seeff.com or follow our whatsapp channel "Seeff Woodstock, Observatory and Surrounds"
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Author: Gina Meintjes
