Western Cape property market gearing up for a busy spring - Market News, News
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Western Cape property market gearing up for a busy spring

14 Sep 2018

Spring has sprung, house hunters are coming out of hibernation and the promise of warmer temperatures could see more buyers visiting show houses in the search for their dream home. Traditionally a time of renewal, spring also heralds a seasonal market rebound for many areas in the Western Cape.

This five bedroom, four bathroom in Bantry Bay, Cape Town, offers an undercover patio and pool. It is on the market for R10.5 million - click here to view.

Nicola Lloyd, Pam Golding Properties agent for Pringle Bay, says the Whale Coast villages are particularly affected by the change in season.

"After the winter months when sales are generally quiet, we do see an uptake in buyer activity ahead of the warmer period. Our buyers who come from other parts of the country, or overseas, have spent the colder months doing their research.”

Lloyd adds that, as it can take a couple of months for a property to transfer, many buyers ensure that they commit to a purchase in September so that they will be able to use their new home by the start of the festive holiday season. With this in mind, mandates are therefore often tailored to launch ‘spring’ properties.

This four bedroom, three bathroom house in Pringle Bay, Cape Town, offers a wraparound verandah and panoramic views of Moonlight Bay and the peninsula. It is on the market for R11 million - click here to view.

The Atlantic Seaboard is also a seasonal property market where buyer activity intensifies significantly after winter.

“Many of the sellers in these suburbs, such as Clifton and Bantry Bay, are not in Cape Town during the colder months, so transactional activity dips during this period. We therefore do see a pick up during the busier peak season,” says Basil Moraitis, Pam Golding Properties area manager for the Atlantic Seaboard.

Rental activity in these seasonal markets follows a similar pattern, says Dexter Leite, Pam Golding Properties rental manager for the Cape region.

This four bedroom, five bathroom home in Clifton, Cape Town, offers a private garden, sparkling pool and games room. It is on the market for R49 million - click here to view.

“Historically, the Cape metro’s rental market also slows during the winter months, with activity levels increasing in the run up to and during the summer months. Noticeably, there has already been an increased demand from students and an increase in activity levels in most of our markets, particularly notable in the mid- to top-end market on the Atlantic Seaboard.”

Warmer, longer days also mean more visitors and sellers are inclined to put their homes on show to potential buyers. Lloyd says many coastal towns, such as Hermanus and Kleinmond, are becoming popular as permanent resident areas, so there are other lifestyle factors that also affect sales throughout the year. The semigration to the Cape metro that contributed to the province’s price inflation over the past few years may have slowed, but many buyers from Gauteng and other parts of the country are still buying in the more accessible coastal areas - either for homes or as longer-term retirement options.

This five bedroom, five bathroom home in Hermanus, Cape Town, offers entertainment areas and ocean views. It is on the market for R5.495 million - click here to view.

While there’s a widely-held perception that homes sell more quickly in the summer, Lloyd says the length of time a property is listed is mostly dependent on its market-related price.

“A property will sell as well in the winter if it is priced appropriately,” he says.

FNB economist John Loos notes that the second quarter of the year is typically a ‘weak seasonal quarter for home buying’, suggesting that activity is likely to rebound towards the end of the year.

This three bedroom, three bathroom home in Kleinmond, Cape Town, offers built-in braai and enclosed patio. It is selling for R2.1 million - click here to view.

“The property market may have softened during the first six months, coming off the back of the Ramaphoria high experienced at the end of 2017, but if there is a ‘right time to buy or sell’ it would be now as we head towards summer and Cape Town’s peak tourist season,” says Lloyd.

According to Lightstone data, house price inflation in the Western Cape for July 2018 showed an unmatched annual rate of 8.64%, well above the national house price inflation index of 4.0%.

“With our dam levels reaching the 70% mark, and the City of Cape Town announcing the lowering of water restrictions and tariffs to Level 5, it is hoped that allayed fears about water scarcity may also boost market activity as we move towards the end of the year,” says Lloyd.

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