Residential property market gathering momentum, says Eazi Real Estate

Posted On Wednesday, 18 November 2020 14:24 Published by
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In this last quarter concluding in December 2020, the residential property market continues to gain momentum, and in some areas appears to be substantially busier - even when compared to peaks in previous years, says Richard Day, CEO of fixed-fee agency, Eazi Real Estate.

Parklands_3_bed_sale_R1.999m_Eazi_Real_Estate

“With offers to purchase flooding in, October (2020) has been another outstanding month for Eazi with record sales turnover achieved, being just over 130% up on our previous best months of August and September (2020).

“In Cape Town’s South Eastern Suburbs and surrounds, including Grassy Park, Gilray and Belhar, for example, we are experiencing several buyers competing for the same properties, in some instances resulting in even higher than asking price being achieved. Furthermore, during October our median time to sell was just 11 days.

“Our sales volumes (units sold) have substantially increased compared to last year, so this trend seems to be more than pent-up demand following the hard lockdown. Contributory factors are the lower interest rate and buyers being able to qualify for bigger bonds, while the lockdown experience and shift to work-from-home offices has increased the need for greater space.”

Day reports seeing a high number of first-time buyers, especially young people and couples looking for properties below R1 million, which sell extremely quickly. This is notable in Southern Suburbs areas such as Plumstead, Bergvliet and Ottery, in Parklands on the Western Seaboard and Kuilsriver in Northern Suburbs.

“There is also a high demand for freehold properties below the R2.5 million mark from those seeking a change in lifestyle, either for more space for families, or extended families buying together. On the other hand, we are also seeing mature buyers looking for smaller properties which are easily maintained.

“With dual living increasingly popular, properties with a flatlet either for additional income or providing space for adult children - university students or young professionals - or elderly parents, are also sought after.

“Generally, we find that our sellers are prompted mainly by changing lifestyle needs rather than financial constraints, and scaling up or down accordingly.”

Adds Day: “Positively, there appear to be no signs of this heightened activity slowing down as we approach the year-end. A further driver of the high demand in the sub-R2.5 million price band are previous rental tenants now wanting to capitalise on the low interest rates and invest in their own homes. Similarly, serious sellers whose properties are well-priced, and particularly freestanding homes in the below R1 million to R2.5 million price band, are motivated by the opportunity to sell at close to asking price and within short timeframes as a consequence of strong buyer demand.”

Last modified on Wednesday, 18 November 2020 14:28

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