So says Fransiska Schutte of RealNet Wilgers and Surrounds, who adds that demand for property in the area has picked up dramatically.
“Another encouraging sign is that for the first time in a long while properties offered at market-related prices receive multiple offers to purchase in short succession. A third positive signal is that we are seeing increasing demand for properties priced at R1,6m and up, in contrast to a year ago when there was high buyer resistance to properties priced above R700k.”
She says that at the same time, stack units of about 82sqm with a price tag of less than R485k are in growing demand. “Units in this category are relatively affordable for younger buyers and also attract investors who earn good rental returns of up to R4k per month.”
Nicky van der Westhuizen, Seeff agent for the area, says the market is very active at the moment with bargains high up on most buyers’ shopping list. “Prices are more realistic now after rising drastically for a number of years. But buyers have to realise that sellers in The Willows won’t just give away their properties for nothing.”
She says the buyers’ pool now mainly consists of parents buying for their kids going to university, employees of the growing number of firms moving into Lynnwood and surrounds and also young couples buying their first property. “I’d say anything between R600k and R2,9m is moving right now. The types of properties that sell are across the board, with houses, clusters and properties in boomed-off areas all finding firm favour with various kinds of buyers.”
Schutte says affordability remains a hurdle in the market. “Not many first-time buyers, for instance, have saved the required sum of about R100k in order to buy a property of R650k.”
However, says Van der Westhuizen, creditworthy buyers have nothing to fear in terms of getting finance for properties in The Willows. “It’s a good area with sound property values and if a prospective buyer has a clean record, his loan will almost certainly be granted.”
She says the market will continue on its gradual recovery path for the rest of 2010 with no real aberrations. “The rising costs of electricity and water will certainly have an impact. In these circumstances, people tend to buy smaller properties as their disposable income shrinks.” – Eugene Brink
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