Nowhere is this more evident that in Parow Valley and its satellite precincts –
Ravensmead, Elsies River, Cravenby, Matroosfontein and Bishop Lavis – which together have 14,000 homes
Alvin Suklall, the Rawson franchisee who serves this area, says that even now in what is technically a downturn phase, he is selling between three and four homes per month.
"By the end of 2010 I calculate that we will be selling up to ten homes per month. Almost all my areas remain very popular, firstly because they are close to so many industrial areas and, secondly, because they have established infrastructures – schools, shopping malls, cinemas, sports fields and hospitals."
The major hold-up to sales right now, says Suklall, is not a lack of willing buyers but rather the incredibly tough criteria (including very big deposits) imposed by the National Credit Act (NCA) and the banks' reluctance to be deeply involved: up to 60% of all bond applications in his area are turned down.
"There are, however, signs that this is changing. ABSA and Standard Bank are now in certain cases giving 100% bonds on homes valued at under R430k and 85% of value loans are more common now."
At the moment, says Suklall, the tough loan conditions are forcing willing buyers to go more downmarket than they would have 18 months ago.
"Seventy percent of my sales are now in the R300k to R500k bracket."
Readers' Comments
Have a comment or question about this article? Email us now.
