10 Jan 2013
The residential home market in Strand, with approximately 10 000 homes, is bigger than most people realise and saw over 330 sales in 2012.
Rawson Properties’ Strand franchise handled 30 percent of those sales and its turnover rose by 50 percent. The franchise is now budgeting for a further 25 percent growth in the year ahead.
Wouter Joubert, co-franchisee of the Rawson Properties’ Strand franchise says by his calculations, achieved sales prices rose by 8 to 10 percent last year. “This fact may be disputed by some, but can be proved from the figures in our books.”
He says many upmarket units are still on the market, but have seen demand and ongoing sales in the R655 000 to R805 000 bracket and even a steady call from potential home buyers in the R350 000 level.
Last year agents saw the market swing from being in the favour of the buyer to now being angled in favour of the seller, Joubert says.
Rent prices have escalated faster than home prices, causing buy-to-let investors to turn their eyes to Strand and Gordons Bay.
"These days, many buyers are getting 10 percent returns on rentals from the outset and my rental portfolio now manages 180 properties," he says, adding that a few of his clients have bought three to five units for investment purposes.
Properties in the beachfront blocks, many of which are high rise, are inclined to be slow movers, Joubert says. Although now priced at one-third less than they were three or four years ago (the average per square metre price has dropped from R18 000 to R12 000) they are still "difficult to shift". However, he says, at today’s values they represent excellent buys, with long-term appreciation potential.
The Gordons Bay mountainside houses also lack urgent buyers. Joubert says although this area has been popular for over 50 years, it has many modern homes and the entry level is hardly ever less than R2 million today.
"The whole precinct is ideal as an excellent long-term proposition,” he says.
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