The graph below reflects the total number of properties sold and registered in 2008. A total of 71 houses sold, 18 sectional title apartments and 62 plots. What is apparent is which suburbs performed best and how developed property sales outstripped plot sales.
WHAT’S HAPPENING SINCE JANUARY 2009?
Strongest interest remains in Canal and Village homes although best value for money lies in the Spanish areas. Interest is greatest in the R3 to 4 million price range on the Canals where there is a shortage of stock, as new listings coming onto the market average between R4.5 to R5 mill +. Listing of new property coming onto the market remains steady.
We have the most stock on our books in 5
years. Plots are selling at entry level
prices from ZAR 220 000. There is a surplus of plots
in the ZAR 400- to ZAR 500 000+ category with
negligible movement in the past 18 months.
Prime position plots in the Spanish area attract the
most interest with prices starting from
R990 000 to R4.9 mill
Very little interest is shown in R1 to R1.5 mill
properties due to affordability. The little beach
cottage is out of reach of many due to stringent
bank lending criteria. The asking prices in this
category of houses is currently overinflated as
sellers slowly adjust in the absence of offers.
Some of the less serious sellers should be addressing their high prices. It is a common mistake to insist on a price that is no longer acceptable, as it invariably leads to the property sticking on the market for more than 12 months without any interest.
Opportunities are being lost because
sellers remain overly fixated on unrealistic
expectations of current market values. Prices of
houses in the Spanish areas only, have come down
noticeably, as especially permanent
residents realise that only realistic pricing and
willingness to negotiate will give them any chance
of a sale. Interest in farm land and small
holdings has increased dramatically.
There is very little interest in property at the
Links, where there is an abundance of stock to
choose from. Speculative building for sale
has almost ground to a stop. Due to rising
building costs, existing properties are more
attractive. The speculative buying
and selling of plots purely for profit stopped
almost two years ago, resulting in surplus stock
here. Buyers are highly sophisticated,
technology driven and have done their homework on
what is available, what appears to represent value
and what they wish to view before they arrive in SFB.
Most buyers take between 6 months to a year to make an offer as they return repeatedly to view new listings in the hope that they will eventually find a “bargain”. While they have identified what they would like to buy, no urgency exists and they wait in vain for prices to go down. In the interim, the property they earmarked to make an offer on sells to another buyer who was astute enough to act on the same opportunity.
From January to date there have only been 3 bank repossessions, dramatically contradicting buyer’s expectations of second home properties being most affected by the current economy. A sure sign that property investment in SFB holds steady, despite the macro economy. Rentals have increased by almost 30 % as demand has outstripped supply, with the increase of families having resettled from upcountry to live here.
Registered sales since January 2009 reflect 14 sales in total comprising 9 houses, 5 plots and no sectional title units. Two of the houses were in the Canals, one in Marina Village, 3 in the Village and 3 in the Spanish area evidence of the increasing demand for value for money homes. Chas Everitt’s market share during this period reflects an impressive 42%.
At Chas Everitt, we have not seen the impact of the stringent bank criteria as most of our buyers can afford the new increased deposit requirements and will meet the banks loan policies. We have not had any sales fall through. In the current market, it is more important than ever to be represented by a reputable agency.
Qualifying buyers, negotiating, follow up and seeing the transaction through, needs to be handled by a professional, qualified agent who is experienced, branded, knowledgeable and can offer value. Buyers Beware of unregistered agents “fly by night” agencies!!!
If you haven’t already booked your holiday here,
contact Natalie of Chas Everitt today on
TIP – Best weather months = January to June
FORECAST FOR THE NEXT MONTHS …
Sellers take the advice you are given when a professional valuation is done and price right from the beginning. Your property needs to stand out from the rest and invite offers. Listing with as many agencies as you can find in the hope that quantity will bring results is a proven recipe for failure. Quality, focused marketing, coupled with fair asking price brings results.
Buyers the reality is that you are now in the best position you have been in for nine years. The window period for BUYING LOW (and ultimately) Selling High is in the next 4 to 6 months.
You have the most CHOICE available EVER and whatever you buy, will retain and grow in VALUE. St Francis Bay property still remains your BEST INVESTMENT.
Your specialist in Real
Estate for St Francis Bay, South-Africa
Jennifer Cooper
