Realistically priced homes for sale below the R2.5 million mark are attracting offers to purchase within a few days of listing, and in some instances, seeing transactions concluded above asking price.
This is according to Brynn Janeke, CEO of fixed-fee agency, Eazi Real Estate who says "there’s no slowdown in momentum in this price range".
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With interest rates remaining low, first-time buyers are seizing the opportunity to gain a foothold in the property market in this high-demand, more affordable price range. In addition, there is a widespread variety of buyers active in the market at present, from singles to young couples and across the generations, to the extent that in sought after locations we are experiencing a shortage of stock from a steady influx of purchasers.
Property24 Trends data shows that the average asking price in the Western Cape is currently in the region of R1.960 million. This is consistent with the average asking price during the height of the pandemic in 2020 - about R1.950 million - and an estimated 3% above the pre-pandemic year of 2019's asking price R1.895 million.
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South Africa's average purchase price has seen double-digit growth of 16.3% year-on-year for the second quarter of 2021 (Q2 21) compared to Q2 20. The Average Purchase Price is at a high of R1,407,071, according to Ooba Barometer data.
The Average Purchase Price of First-time Buyers showed a 10.9% increase for the same period reaching an average price of R1,104,351.
According to Easi Real Estate sales, homes are taking a median of just 20 days to sell. Janeke says they're "receiving an estimated three offers on each property sold and achieving on average 97% of asking price, and with the balance of properties achieving full or even above asking price as buyers compete to secure their property acquisitions".
"We are certainly seeing an ongoing increase in activity, further boosted by work-from-home lifestyles, a demand for outlying locations versus city centres, families who are upscaling for more space or downscaling for financial reasons, and those relocating to the Western Cape from Johannesburg and elsewhere, including retirees looking to settle on the coast. Positively, we are seeing a large number of buyers who are relocating in order to upsize in terms of space and location.
He says Eazi’s online offer system, facilitated by its agents, helps more buyers to submit offers, adjust their offer amounts in real-time if desired, with the seller having all offers presented immediately in front of them. Competing buyers, on the other hand, and via the website, can see the prices of offers submitted and whether it’s been accepted, unsuccessful or expired.
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“Younger buyers, in the age group from around 27 years are looking to own rather than rent, while the 40+ age group is generally seeking larger properties for upscaling to accommodate extended family requirements, for remote working and to be closer to schools or in a more secure environment.”
'High-demand areas'
Janeke says areas which are experiencing the highest demand for their agency includes Belhar, Kuils River, Eersterivier, Goodwood, Brackenfell, Durbanville, lower parts of the Southern Suburbs such as Mitchell’s Plain and Athlone, Plumstead, Retreat, Muizenberg, in the Western Seaboard Table View and Parklands, and further afield Somerset West and Gordon’s Bay.
“Apart from affordability, a common denominator among these suburbs is that they all offer larger than average houses at accessible prices, making them attractive for growing families and multi-generational living and for those working from home, while they also offer schools, shopping facilities and convenience, with all amenities close at hand.
“Savvy sellers are capitalising on the current market which is beneficial to both buyers and sellers if priced right. Most of our buyers are pre-approved for finance, mainly for 100% bonds and some with 105% bonds. We are, however, seeing more cash buyers, higher deposits and buyers who have already sold their own properties and are ready to purchase.”
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In August 2021, searches for Cape Town properties on Property24 received over 9.9 million page views. Between June and August 2021 the Cape Town metro received over 29.1 million page views.
Cape Town currently has *2 029 new property listings, according to Property24 Trends , with the average asking price for the area being R2.94 million. The average sale price per erf for 2020 was about R1.655 million, while Section Scheme Units in Cape Town have seen an average sale price for the same period is R1.38 million.
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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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