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CLEAR SIGNS OF INCREASED OPTIMISM IN CAPE TOWN’S SOUTHERN SUBURBS RESIDENTIAL MARKET
Many Cape Town estate agents will tell you that it is hardly worth their while to keep their offices open during the Christmas/New Year period.
This is very definitely not the view of Anton du Plessis, Chief Executive of Vineyard Estates. He ensured that he was completely available over this fortnight when other agents took a break – and he gained many new leads and one sale by doing this.
One Vineyard Estates client who had motored to Cape Town from the Karoo the day before was actually taken by du Plessis to see a home on Christmas Day – and he signed for it at a price of R3,15 million on the 2nd January, eight days later.
“I now find that a new, more positive attitude is evident in the property market, particularly that of the Cape Town Southern Suburbs at the moment,” said du Plessis. “We are finding that there is more buyer interest and far more willingness to put in an offer. On a recent show house we had 14 visitors in one afternoon. This is possibly triple what we would have achieved in November last year.
Du Plessis’s Constantia agent, Thys Human, also testified that interest and house visits are already well up on last year.
Du Plessis said, after 24 years in property selling, he has learned to expect ‘fairly flat’ Decembers, which are then followed by revived interest in January. However, what is setting this year’s January apart (and giving him considerable confidence for the future), said du Plessis, is that this upsurge in activity occurred during the school holidays.
“Last year we also saw an upswing in January – but then the schools had returned early due to the World Cup coming later in the year. This year the activity has kicked off during the school holidays – which is very unusual. What is more, buyers want to view as soon as possible, whereas last year they would make appointments a week or more in advance. This indicates that a new urgency is being felt.”
Du Plessis said that while the signs of 2011 being an improved year are very definitely evident, it is unlikely that house prices will rise significantly.
“The FNB Review estimates 2010 price rises nationally to have been 67%. I do not expect this figure to go much higher during 2011.”
The main activity in his area (Upper Claremont, Kenilworth and Bishopscourt), said du Plessis, will remain in the price bracket below R5 million. Nevertheless, he said, it is noteworthy that five buyers are still on the hunt for houses priced at R8 million to R10 million in Upper Claremont and Kenilworth and for some time now have been unable to find anything suitable.
“One has to accept that sentiment does play a major part in buyer attitudes,” he said. “People on holiday tend to discuss prospects for the year ahead with their friends. The New Year then often ushers in a new attitude, in this case a far more positive one. It is clear now that the prevailing outlook is increasingly optimistic and I think this is likely to continue for the foreseeable future.”