22 Jan 2013
It is often the less expensive property that is the fastest in recovering from the recent downturn and is now seeing small but ongoing price increases in South Africa today.
This certainly applies to areas served by the Rawson Properties’ Malibu Village franchise, say co-franchisees Maurice and Carol Mullam, which has 19 000 homes almost all of which are freehold properties as there are few sectional title units in the area. The district covered includes Blue Downs, Tuscany Glen, Summerville, Malibu Village, The Conifers, Greenfields, Dennemere, Blackheath, Fountain Village, Fairdale, Brentwood Park, Hindle Park, Silversands, Sunbird Park and other small areas.
However, within the boundaries of the precinct are Mfuleni and Wesbank comprising half of the area's homes, most are RDP houses, which cannot by law be sold or rented by the owners until they have been occupied for eight years.
Houses will have on average 60 square metres to 120 metres of floor area and will be on stands of 250 square metres to 350 square metres or up to 700 square metres in the Blackheath area. The Blue Downs area has a number of schools at primary and high school levels.
The demand for housing has been consistently good for many years, says Maurice Mullam and the biggest challenge is not selling homes, which can often be done within one week of being given the mandate, but in finding stock.
Mullam says few distressed properties have come onto the market and prices are starting to move up. However, they remain among the most affordable in the entire greater Cape Town area.
“Depending on which area you choose to focus on, you can pay anything from R300 000 to R750 000.”
In 2012, Carol Mullam says they sold an average of four or five homes per month, making them market leaders in areas such as Brentwood Park. She says it has been encouraging that many houses sell close to their asking price, although there are still numerous unrealistic sellers who set their prices at levels based not on what the market will pay but on what they would like to accrue as a deposit, or a full payment on a future home.
As many as 70 percent of buyers throughout the precinct qualify for bonds and a high proportion are government employees, who are regarded by the banks as being in secure employment, often receiving 100 percent bonds.
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