The luxury housing market, with values of between R3-million and R12-million, is still slipping in the recessionary conditions with average values continuing to fall according to Linda Erasmus, chief executive of Fine and Country.
She says that while there are few “distressed properties” for sale in the luxury segment, these do come up from time to time and that when they do eager buyers invest in them immediately.
She says that of the top ten suburbs in South Africa, only properties in Clifton, Llandudno, Westcliff and Hyde Park have continued to appreciate during the first quarter of this year.
Referring to the Western Cape property market, Erasmus says that more and more buyers are investing in cheaper properties in what she calls “contender suburbs” where the prices are not as high and where there are bargains available.
She says that suburbs such as False Bay provide significant value for money compared with properties on the Atlantic Seaboard.
Andrew Golding of Pam Golding Properties says that the Western Cape has managed to maintain is “relative stability” despite a shortage of stock but points out that the southern suburbs of Cape Town, the City Bowl and the Atlantic Seaboard remain highly sought after and command good prices.
However, estate agents operating in the luxury housing market point out that the time it takes to sell a property in the R3-million to R12-billion segment is at least 20 weeks but some properties can remain on the market for a year or more before and offer to purchase is received.
According to Erasmus buyers in South Africa are being cautious and are now taking their time to view the different choices and then make a decision.
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