Over the last three years, swanky properties in highly coveted areas from the Atlantic Seaboard to Constantia Upper have seen shocking price reductions of up to R10-million and property experts say there’s no better time to buy than now.
Ross Levin, managing director for Seeff Atlantic Seaboard and City Bowl says that the prices of higher priced properties are experiencing never-before-seen discounts in reaction to weak demand in the market. Recent sales have experienced prices reductions of between 20 and 50%.
Since 2016/17 the high-level property market has seen a decrease of roughly 40% despite and expected uptick after the election, this market experience a further 15% decline in value in reality.
High-end sales remain especially slow. Consequently, Levin says, there’s plenty of good stock and prices are falling!
Following a brief period of reluctance, sellers are becoming more willing to negotiate and creating more and more opportunity for buyers to find great affordability within the high-end sales market.
Data from Propstats sale is also showing the overall time it takes to sell a property has increased greatly from the 75-odd days it took last year to 126 days on average this year.
On average properties on the Atlantic Seaboard are often being sold for 16.9% cheaper than originally advertised prices and some sales have even been reduced by 20 to 50%.
In Bantry Bay, the price of property dropped from R45-million to R27-million and in Fresnaye, a property went from a selling price of R35-million to R25.5-million.
Apartments in Sea Point have even recently sold for up to 21.3% below the asking price.
The median sales price for apartments at the V&A Waterfront Marina has declined by 47% since 2017 and by 24% since last year, essentially now sitting at a level below that of 2013. If you wanted to buy, now is the time, says Levin.
A three-bed townhouse in Camps Bay with a price tag of around R7,45-million will cost about R73,000 per month if bonded and almost R800,000 in transaction costs. You can rent it for about R35,000/month, says Natalie Muller, Seeff’s rentals manager for the area.
Constantia Upper sellers are also having to reduce their asking prices due to a significantly weaker market compared to two years ago.
The dip in property prices is even stretching as far as Hout Bay and Llandudno with high-end properties selling for a fraction of the price compared to what they were originally listed for.
Samuel Seeff, chairman of the Seeff Property Group says that now is one of the best buyer’s markets in decades especially when it comes to upper price levels. Low-interest rates and keen competition of sellers are just adding to the favorable environment and those looking to buy property should not miss their chance.
