The uncertain economy, skyrocketing inflation and escalating interest rates certainly don’t make property purchases an intuitive choice, however, there are some areas that continue to shirk the trends and thrive, despite the challenges.
According to Roger Lotz, local property expert and franchisee for Rawson Properties Helderberg, one of those areas is Somerset West. “If we look at recent data for Somerset West property, it’s very clear that neither price growth nor unit sales have suffered significantly over the course of the pandemic,” he says.
Lots says growth has actually followed a fairly steady incline from as far back as 2012. The average selling price of a freehold home is now R3.15 million with a massive increase of R600 000 from 2020.
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He says sales activity has also shown significant growth in the last year, with almost 50% more sales taking place in 2021 than in 2020. Expectations for this year are slightly more modest, with around 1 320 transactions predicted, signalling a minor contraction from 2021’s 1 556.
Somerset West has currently *305 new property listings, according to Property24 Trends Data with the asking price for the area being R2 862 500. The average sale price per erf for 2021 was about R2.7 million while Section Scheme Units average sale price for the same period is around R1.397 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. Sellers in the area fall within the 65-years or older (46%) age group, while 28% of buyers fall in the 36-49 years age group.
Click here to view all the latest Property sale price and listing price trends in Somerset West
“In general, trends over the last six months paint a very positive picture for Somerset West’s future, despite factors like interest rate increases which could impact buyer activity,” says Lotz.
“We are privileged to live in an extremely sought-after part of the Western Cape, which has contributed to our exceptionally resilient local property market. Those looking to buy or sell in 2022 will still find excellent opportunities out there.”
As for what the market currently holds, freehold properties make up 42.81% of stock, with freehold homes in estates in second place at 29.28%. The sectional title market has taken a backseat in terms of popularity since the onset of COVID, contributing only 21.88% of properties on the market, despite a median price of less than half that of freehold homes.
Lotz goes on to say there has been a shift towards freehold properties over sectional title as people spend more time at home, work from home is still a big factor,” he says.
The lounge leads into a sunny north-facing braai room that has been enclosed with stacking doors, and is perfect for entertaining throughout the year.
While homes inside security estates are still very popular, but often come at a premium price point and as a result, Lotz says, more buyers are looking outside of gated communities in search of value-for-money.
“Demand in this segment, in our experience, is growing month by month,” he says.
So how can sellers get in on the action? The key, according to Lotz, is to position and market your property strategically to reach its most likely target. “We’re a small town of only around 20 000 properties, but we have a lot of variation from street to street and area to area."
"Understanding what your typical buyer is looking for, where they’re looking, and what price points they can realistically consider, is essential to get your listing in front of the right eyes. Get it wrong, and you could be on the market a long time right now,” he cautions. “Get it right, and we’re seeing favourable sales happen in a matter of days,” he says.
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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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