As the first half of the year has officially ended, property experts around the country are taking stock of market performance, with local market conditions surprisingly strong to date, promising a solid close to the year - barring unexpected surprises.
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According to Roger Lotz, Somerset West expert and Sales Manager for the Rawson Properties Helderberg Group, there are very clear signs of a seller's market emerging in the Western Cape Winelands town of Somerset West.
“We kicked off the year with 1 580 residential properties for sale in Somerset West. That’s across all price points and property categories, from vacant land to townhouses to freestanding homes in and out of estates. As of June, that figure has dropped to 1 290 which equates to a more than 18% reduction in stock,” says Lotz.
While stock availability is still relatively good on average, he says the overall reduction in listings on the market does suggest conditions could be swinging in favour of sellers’ soon.
“We’re already seeing very clear signs of a sellers’ market in certain price ranges. Newer properties, in particular, are attracting a lot of attention when priced appropriately, and are achieving very favourable offers and quick turnaround times.
This burgeoning trend is supported by slow increases in the average value of property sales in Somerset West, suggesting local price growth is beginning to tick upwards. This should be very reassuring to anyone considering putting their properties on the market in the near future. However, Lotz urges potential sellers to arm themselves with as much information as possible before making any important decisions.
There are currently *352 new property listings in Somerset West according to Property24 Trends Data, with the average asking price for the area being R2.71 million. The average sale price per erf for 2020 was about R2 625 250 and for sectional title for the same period is R1.32 million.
The latest residential listings on Property24 show that three-bedroom homes are most widely available, at an average list price of R2.995 million. About 33% of sellers in the area fall within the 64 years and older. About 34% of buyers fall within 36-49 years, followed by 30% within the 18-36 years age group.
Click here to see the latest trend data for Somerset West
“Conditions may be improving, but it’s still a competitive market out there, with well-informed and well-educated buyers,” he says.
“It’s essential to have all the facts and figures, preferably backed by the advice of a reputable agent who is familiar with your area, your property and your specific circumstances and can advise you on your best course of action.”
As for buyers, Lotz says conditions remain extremely favourable thanks to ongoing low interest rates and motivated lenders.
“It is a great time to be entering the market, whether as a first-time buyer or investor, or a seasoned property mogul looking to expand an existing portfolio. Somerset West, in particular, is a very sought-after investment haven, with an excellent track record of returns on investment. As a well-established neighbourhood there is also a lot of data to inform your property decision, as well as seasoned property professionals available to interpret and advise on potential opportunities.”
While the time may be ripe for investment today, Lotz says shifting circumstances are par for the course in property.
“We’re already seeing prices strengthening and stock availability decreasing. This will begin to impact buyers’ experiences on the market in the months to come. It’s anyone’s guess exactly how long current conditions will last, particularly with challenges like load-shedding, economic contractions and further COVID-19 waves hanging over us.
“What we do know is that Somerset West has weathered the last year’s challenges remarkably well and looks set to perform equally impressively heading into the last half of 2021.”
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*Property24 Listings Data Disclaimer: The trends detailed in this article are based on Property24 listings, current at the time of publishing, and property transfer data supplied by Deeds offices, which typically take 3-4 months to reflect. Suburbs are listed according to Property24's geographical database. In some areas this will include both commercial and residential properties. The age demographic data of buyers, sellers and stable owners is determined over a six-month period. These Property Values should not be used as a substitute for independent professional advice and is subject to Property24.com Terms and Conditions.
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