End to Market Slump in Sight
The news for the Cape Town property market has been one of doom and gloom. Recent negative headlines about the City, combined with pre (and even post) election jitters and an economy in a technical recession have had a major impact on the market - but according to local property expert Brendan Miller, it's not all bad news.
According to FNB's Cape Town Sub-Regional House Price report, there were reduced prices in areas from the Southern Suburbs, City Bowl and the Atlantic Seaboard extending into the Eastern Suburbs like Salt River and Woodstock.
While 2018 and the first half of 2019 have been tough on sellers, the tide is turning with a stabilization and turn in the market, explains founder of Live Real Estate, Brendan Miller.
Renewed interest in real estate
Miller describes a recent change in the market in Cape Town. "With the first half of the year's uncertainty leading to a buyers' market, for the first time in months we are seeing an increase in interest. As buyers look to take advantage of the reduced market, we can expect a stabilisation of prices, and as we head towards summer, I believe we can see the tide turning."
"Affordability of housing across Cape Town also means that there are potentially more buyers able to purchase a home. While the prices at the very top end of the market are unlikely to reach their previous levels, there is a still major potential within the mid-range housing market," explains Miller.
Cape Town property values are still the highest overall in the country, according to municipal figures, valued at over R1.6 trillion, with Fresnaye, Sea Point and Rondebosch holding the most value.
What the research reveals
This information, along with the fact that the city's property growth still remains above the national average, were contained in a recent research report from Lightstone.
"The latest research, combined with our on-the-ground experience has convinced us that the dip in the overall Cape Town property market is sure to end soon. We foresee an increase in interest most sectors of the market. Although, we do feel that the extreme top end of the market may still suffer due to economic insecurities. There are many other sectors of the market that will see a turn-around sooner rather than later."
The current state of the market presents opportunities for serious buyers, and many have started realising that now is the time to buy. As demand starts catching up with supply, the market is starting to stabilise with the trend expected to continue as we head towards the summer months.
"We are positive about the future of the local market and believe it's important to share this confidence with both prospective buyers and sellers. For those who are serious about investing in the market, or selling at a fair market price - the time to act is now."
