The number of days properties remained on the market in the Southern Peninsula before being sold has reduced substantially in 2011, reflecting a better understanding of market realities by sellers. This is according to Francois Venter, Regional Sales Manager for the Western Cape. The exception to this trend is Simon’s Town, where listing days have increased.
For the first seven months of this year, properties in Scarborough remained on the market for an average of 152 days before selling, compared with 315 for the same period last year. In Kommetijie, it took an average of 103 days to sell a property, versus 253 days last year. For Noordhoek, the figure was 106 days, compared with 172 last year and in Noordhoek Surrounds, it took 89 days compared with 150. For Fish Hoek and Surrounds, the figure was 98 days, compared to 153 days.
“In all these areas the difference between the list price and the final selling price has reduced from an average of 11% last year to 9.8% this year, which shows that sellers are becoming more realistic,” says Venter. The exception to this trend is Simon’s Town, where it took an average of 370 days to sell a property, compared to 243 days last year. “Interestingly, however, values have improved. Last year the average selling price was R2,028,333 whereas this year average selling price was R2,658,158.”
Harold Kolnik, who owns the Southern Peninsula franchise, says that good value, the healthy, relaxed lifestyle, low crime rates and a strong sense of community continue to attract buyers to the South Peninsula overall. “A starter home in areas like Fish Hoek Valley can be bought for as little R750,000 whereas previously the price tag was closer to R950,000. Family homes with three bedrooms and two bathrooms but no view start at around R1 million, while more spacious homes with a view, range from R1.5 million to R2.3 million. According to PropStats figures, the average sale price over the past 7 months for Fish Hoek was R1,192,065, compared with R1,324,024 for the same period last year.
Kolnik says the simpler, outdoor lifestyle of the area is proving particularly attractive to South Africans returning from a stint overseas in a large commercial centre like London as well as buyers from Johannesburg, wanting to escape the stress of highly demanding jobs, escalating crime and worsening public services. “Technology advances have enabled increasing numbers of people to work from home, commuting to other cities occasionally for meetings.”
The growing number of ‘green’ developments is attracting buyers with an environmental awareness and young families like the sense of safety, the active community life and the value for money. In addition, good schools, like Redham, and alternative schools like the Waldorf School, cater to a range of educational requirements.
In conclusion, Kolnik says the South Peninsula is no longer predominantly holiday homes. Whereas permanent residents in areas like Scarborough and Misty Cliffs used to number around 40%, today they number closer to 80%.
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