This is the view of several Randburg agents who also agree that young families are generally the main buyers.
“We did get a sense that many buyers were sensing that prices might start moving up and that the banks were starting to be a bit more ‘free and easy’ with the provision of finance, and this combination of factors did get buyers to commit. Here we are talking about sales in the R500k to R1,3m price bracket,” says Tony Ketcher, managing director of Seeff Properties Randburg.
“A good 36% of our buyers are sourced from showhouse activity - and we made a point of holding showdays right to the last weekend before Christmas. We were receiving on average between 10 and 20 visitors per showday in most suburbs. As industry adviser David Knox so eloquently puts it: ‘In order to do good business as an agent, you must be there’. I guess that was our strategy in November and December 2009. Another interesting factor was that our enquiries through the website have virtually doubled over the past 24 months.”
Anthea Tanner, Re/Max sales associate specialising in the Randburg areas of Bordeaux, Ferndale and Blairgowrie, says houses between R1m and R1,2m are most popular at the moment. “Young families are our main buyers and sellers seem to have had shock therapy as far as pricing is concerned. They are becoming more realistic while I urge buyers to do research on properties in the area
Jennifer Day, Chas Everitt agent for Randpark Ridge, says home sales are currently outstripping cluster sales, whereas it was the other way around in 2009. “I don’t know what to ascribe this to, but I would surmise that financing is playing a big role. The price range between R1,2m and R1,6m is drawing the most interest by far and young families are making these purchases.”
Ketcher says his branch has experienced a steady uptick in sales activity since June 2009. “In the first half of 2009 our average sales were around and above the R20m a month mark, whereas in the latter half of 2009 we more than doubled that figure. December was our busiest December in five years.”
Ketcher says many clients were relocating from other towns such as Windhoek, Cape Town, Durban and Port Elizabeth.
Ketcher says another interesting trend was the higher incidence of sales in the over-R1,5m bracket than in 2009. “This indicates that sellers and buyers in the R1,5m to R2,5m arena are also coming back into the market.
Tanner confirms this, but says there aren’t any fireworks yet but is expected to start picking up during 2010.
What about 2010? Ketcher says the year has started well. “We are running 40 showdays each Sunday, and activity has been good. We are still cautiously optimistic that 2010 will be a good year.
“We can see no reason why the market should not continue to grow at a steady pace. We will not ‘shoot the lights out’ like in 2004, as buyers and sellers will be much more realistic and banks will continue to be cautious. The banking fraternity needs to lend money to generate income and thus will accommodate more buyers, but the air of caution will remain for most of 2010.
Tracy Pugin, rental manager of Seeff Properties Randburg, says they are getting lots of enquiries for all sorts of World Cup lets, but visitors seem to be quite picky and price-conscious.
“We are getting lots of enquiries for all sorts of lets for 2010, of up to 45 days in duration, and to sleep up to 100 people at a time. These visitors will not pay what they see as over the odds. For a three-bedroom house that can sleep five or six they will pay around R4k per day maximum, which averages R800 per day per person. We have lots of houses signed up already – what we need more of are small hotels, self-catering accommodation and bed and breakfasts that can sleep 20-30 people in a group.”
For more information contact Tony Ketcher on 011 476 3536 or Jennifer Day on 072 272 1602.
Readers' Comments Have a comment about this article? Email us now.
My home is in Horison, after calling numerous estate agents to come and give valuations on my property and receiving only two replies which produced possible prices of between R850k and R920k my wife decided to sell the house herself.
The estate agents had told us that we must not get our hopes to high regarding a quick sale as the market is very depressed at the moment and we were expecting top price for the area.
So, I had signs made saying “Private Sale”. On the appointed Sunday morning at 10a.m. while putting the signboards out an estate agent pulled up next to me and said “ Does your house have a flat” . I answered yes, she said “I have a buyer”.
Net result, I sold my home for the price I wanted in less than two hours and it was the top price for a house in the area in the last two years.
Buyers are out there if you are lucky like we were. However, based on what I have been told since the bulk of homeowners don’t look after their properties and are totally unrealistic in the prices that they ask for them. – Trevor
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