SOUTHERN SUBURBS BOUTIQUE PROPERTY COMPANY | Tel: +27 21 762 4444
100 PLUS SHOWHOUSES EACH WEEK IN CAPE TOWN’S MORE UPMARKET SOUTHERN SUBURBS SHOW IT IS STILL A BUYERS’ MARKET
One of the interesting facts revealed by his weekly review of the asking and achieved residential property prices in the areas that he serves, says Anton du Plessis, CEO of Vineyard Estates, the Cape Town southern suburbs estate agency, is that the number of show houses held has hardly altered since the boom period of 2007 – in some cases it has even gone up.
This, says du Plessis, is not what he would have expected – taking into consideration that the number of estate agents has in the period under review been cut by 65% and the number of sales by has reportedly halved.
The areas surveyed by du Plessis were Bishopscourt, Constantia (Upper and Lower), Kenilworth and Newlands. In May 2007, said du Plessis, these areas had just over 100 show houses per week. In May 2008 the figure was 120 – and the figures for the years since then were on much the same level. In May 2009 the figure 108 and in May 2010, again, close to 120.
“What this indicates,” said du Plessis, “is, firstly, that today’s agents are working very hard, sometimes showcasing the same home two or three times in a month and, secondly, that, despite the slight uptick in the prices, there is still a great deal of stock available. Conditions, therefore, still favour the buyer rather than the seller and this is particularly true of Constantia where right now there can be anything up to 150 homes for sale.”
Asked how significant the recent uptick is, du Plessis said that his sales show a 4 to 5% increase on what would have been achieved in the last quarter of 2009 – and he remains confident that by the year end this will have risen to 10%.
The show house figures, said du Plessis, also indicate that there is still no better way to bring about the sale of a property than by putting it on view. In his company, show houses account for at least 25% of sales and other have put this figure far higher.
“Show houses have this great advantage: they offer the visitor the opportunity to inspect the home thoroughly at leisure and without pressure from the agent. Many potential buyers feel more comfortable under these conditions. In fact, there are many buyers who are reluctant to make appointments to view potential homes because they do not want to inconvenience the agent and seller – particularly if they are still not sure that they do want to make a change. Those same people often walk in to a show house, like it and become serious buyers.”
“There is always a mix of visitors to any show house,” said du Plessis, “you have inquisitive neighbours, property enthusiasts, serious and not-so-serious buyers. Often people visit show houses in their chosen area to get an idea of the relative value of their own property. Although many visitors are not initially serious buyers, it is surprising how often a casual visit will result in the visitor “falling for” a home and end up buying it.
“This is one of the reasons that I welcome every show house visitor. The other is that they create a busy, competitive vibe that can stimulate interest.”