The latest residential property price ranger from Sotheby's International Realty South Africa says that an analysis of the regional industry figures shows that not all is doom and gloom in the Western Cape property market.
While the residential property price ranger recorded a 35% drop in turnover for the entire Western Cape property market for the first six months of 2008, from R12 billion to R8 billion, and a 45% drop in units sold, from 7,500 units to 4,100 units, average prices for the region actually increased by 19%, from R1.67 million to R1.99 million, it shows.
Executive director Barak Geffen attributed this to a larger number of transactions in the upper segment of the market, and less in the lower segments, skewing the data to reflect an increase in prices.
Some of the more significant sales included a R24 million Clifton sale, a R24 million Granger Bay sale, and a R23 million Bantry Bay sale.
During the last three months of 2008, over 100 properties were sold for a total of R476 million in the Atlantic Seaboard, at an average price of close to R4 million, showing that there was still demand for property in highly sought-after areas.
'There is still a lot of buyers in the marketplace and qualified sellers should not be put off marketing their homes owing to the negative sentiment that is being expressed in the media,' said Geffen.
'Astute buyers have been waiting for a market correction to pick up top-end properties from realistic sellers at market related prices, in order to gear up for the next upward cycle in the market,' he added.
