Property Market: HALF YEAR REVIEW
The Cape Town residential property market has remained broadly challenging for sellers in the first half of 2021. There continues to be an oversupply of properties in the market compared to actual sales. Supply and demand are still considerably far apart, and buyers actively looking clearly have plenty of choice in a competitive market. In the property market we need to look at overall trends in order to understand the current market and where we may be heading. When sales for the first half of 2021 are compared with the same periods for 2020 and 2019, there is overall a downward trend for most indictors in most suburbs analysed. Have we reached the bottom of the property cycle yet? As always, there is much speculation and a range of opinions on this. A consensus seems to be emerging that there are early signs of recovery, with a recent increase in buyer enquiries from both local and international buyers. We can be cautiously optimistic that the second half of 2021 going into the first quarter of 2022 may see a slow, but steady pull out of the bottom of the market. For now, property owners wishing to sell need to continue to be keenly and competitively priced if they wish to increase their chances of selling in a crowded market. It's always useful for sellers to look at the market as a potential buyer and see how their property compares to similar properties, as well as the actual sales that are happening. For those property owners not yet on the market, but considering selling, now may be the time to prepare their property for the market, so that they ready for the eventuality of an improving market in the Cape Town spring.
Below is an overview and analysis of the data and market for Sectional Title Residential (apartments) for four property suburbs.
NOTE: All table data is extracted from CMA Info which is drawn from the Deeds Office. Additional data source: Property24 Sales Trends.
|
Cape Town City Centre Cape Town City Centre has continued to show downward trends on all key indicators. The volume of sales, average selling prices and average R/m2 are all down year on year. The main market in the CBD remains that of properties under R2m, particularly those that are keenly priced. There is a slight improvement in the average number of days properties are on the market before selling. These trends are broadly supported by Property24 sales trends data. There are currently around 1100 properties for sale in Cape Town City Centre on Property24, and an average of six sales a month taking place. As with other suburbs there is significant difference between average asking prices and average selling prices, which points towards optimistic pricing by some sellers and agents. There is considerable inward investment to the CBD in new developments, both mixed use and residential, which should have a beneficial impact on the central city in the coming year. |
||||
|
*CMA Info Data |
|
Jan - Jun 2021 |
Jan - Jun 2020 |
Jan - Jun 2019 |
|
Number of Sales |
|
38 |
63 |
72 |
|
Average Selling Price |
|
R1,919,373 |
R2,077,000 |
R2,457,664 |
|
Average R/m2 |
|
R26,629m2 |
R30,431m2 |
R32,492m2 |
|
Average Days on Market |
|
104 |
126 |
258 |
|
Sales Under R2m |
|
25 |
43 |
36 |
|
Sales R2m to R3m |
|
9 |
14 |
20 |
|
Sales Over R3m |
|
4 |
6 |
16 |
|
Foreshore The Foreshore area is defined as a much smaller property node, and therefore not surprisingly shows less activity. The volume of sales for the first two quarters of 2021 is similar to the same period of last year. Average selling prices are down. However, there is good news in the recovery of the average R/m2 in actual selling prices. The Foreshore precinct will benefit from the development of the old Caltex garage site, which will provide a much stronger connection and link up with the Waterfront Silo precinct, once it is completed. There are currently just over 100 apartments for sale in this precinct on Property24, with nearly 90% of them priced under R2m. |
||||
|
Foreshore |
|
Jan - Jun 2021 |
Jan - Jun 2020 |
Jan - Jun 2019 |
|
Number of Sales |
|
9 |
8 |
5 |
|
Average Selling Price |
|
R2,822,464 |
R4,113,122 |
R3,610,000 |
|
Average R/m2 |
|
R39,753m2 |
R36,199m2 |
R39,758m2 |
|
Average Days on Market |
|
186 |
108 |
153 |
|
Sales Under R3m |
|
7 |
1 |
1 |
|
Sales Over R3m |
|
2 |
7 |
4 |
|
De Waterkant The volume of sectional title sales is slightly up year on year for De Waterkant, although not yet back at 2019 levels. The average selling price is considerably down on 2020 levels, perhaps once again confirming a supressed, over supplied market where keen price points are key to selling. Property24 trend data indicates a sharp differential between average asking prices and average selling prices. As with other property nodes the average time of a property on the market before selling has reduced, signalling a relatively faster moving market for well- priced properties. There are currently some 270 properties for sale in De Waterkant, with approximately two-thirds of them in the R3m and over price range. |
||||
|
|
|
Jan - Jun 2021 |
Jan - Jun 2020 |
Jan - Jun 2019 |
|
Number of Sales |
|
19 |
16 |
32 |
|
Average Selling Price |
|
R2,770,447 |
R4,091,563 |
R3,165,000 |
|
Average R/m2 |
|
R35,423,m2 |
R53,528m2 |
R49,685m2 |
|
Average Days on Market |
|
111 |
162 |
No Data Available |
|
Sales Under R3m |
|
12 |
10 |
19 |
|
Sales Over R3m |
|
7 |
6 |
13 |
|
V&A Waterfront The V&A Waterfront shows a stable market, with average selling prices and average R/m2 indicators both holding much in line with 2020. Both the volume of sales and the average days on the market have improved compared with last year. This is in line with property industry commentary from along the Atlantic Seaboard that suggests the upper end of the market is relatively robust. There are currently some sixty properties for sale on Property24 for the Waterfront, with some two thirds of these in the R10m and over price bracket. |
||||
|
|
|
Jan - Jun 2021 |
Jan - Jun 2020 |
Jan - Jun 2019 |
|
Number of Sales |
|
13 |
9 |
6 |
|
Average Selling Price |
|
R9,445,000 |
R9,588,889 |
R10,535,000 |
|
Average R/m2 |
|
R66,586m2 |
R66,590m2 |
R71,748m2 |
|
Average Days on the Market |
|
171 |
210 |
No Data Available |
|
Sales Under R10m |
|
7 |
5 |
3 |
|
Sales Over R10m |
|
6 |
4 |
3 |
Please do not hesitate to contact me at anytime to discuss your property requirements, including a free, no-obligation valuation, or, if your property is already on the market, it's current pricing and advice on selling. I am available by appointment seven days a week between 8am and 8pm to assist with all your property requirements. I can be reached via Whatsapp on +27 (0) 81 063 1871, or email at: richard@kinesisproperty.co.za
12 Jul 2021
Author Richard Boxford