While the luxury property market continues to feel the pinch within the tight economy, certain high-end suburbs are holding onto their appeal.
Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett says the more sought after the suburb, the less property values will be affected by the current over-supply of listings.
Ari Voyiatzis, Team Leader of Team Atlantic at RE/MAX Living, explains that as one of the most sought-after suburbs in the country, Sunset Beach in Milnerton, Cape Town, does not experience the same ‘price drop’ pressure as other suburbs.
“Most of my clients are either emigrating or downscaling. Yet, while more houses are coming onto the market than what are selling, the registered sales have all been within reasonable margins from the asking price.”
For sellers who want to sell for as close to the full value as possible in luxury markets such as these, Voyiatzis recommends partnering with a top agent with a proven track record in the area, who can also offer the largest national and international exposure through their network and brand presence.
Then, of utmost importance, he says,is to trust the agent to price your home to sell. “This market is not one in which you can test the waters with a higher marketing price - this will damage your resultant sale price. The average period from listed to sold ranges between four to eight months. That being said, I have sold well-priced homes within three weeks from the listing date.” Voyiatzis also warns that jumping around between agencies will not speed up your sale, but only make your house look desperate. He suggests that sole mandates still produce the highest selling price in the shortest timeframe, as these provide your agent with the incentive and means to negotiate the highest price for your property.
To make your home more appealing to buyers over this time, there is an emerging demand for properties with granny flats, he says.. “The tougher economic conditions are creating a need for families to consolidate their expenses and pull together on dual-living properties. Security estates are still high in demand, although the erven in these estates are smaller.”
Also in high demand are rental properties in the area. According to Voyiatzis, properties in Sunset Beach normally rent out within the first six weeks of listing and range between R24 000 to R40 000 per month. In his experience, the quality of tenancy in this area is fantastic, and most prefer long-term leases.
For buyers who are hoping to enter this market, Voyiatzis strongly suggests getting prequalified so that no time is wasted by viewing houses that the buyer cannot afford.
See what home loan amount you could qualify for here
“You are about to make one of your biggest investments, so you will want a professional with excellent sales experience to guide you through this process. Research the agent you choose by looking on their website for a list of their achievements to make sure you are partnering with somebody you know you can trust.”
Goslett says the key to hassle-free buying and selling in any luxury market is to partner with an experienced real estate practitioner whose advice you can trust to follow. “The listing and buyer pool is much smaller within the luxury market, so you need to be sure that your chosen real estate practitioner has the right connections and experience to either find your perfect luxury home or sell your high-end home for its full value.”
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