Constantia's vineyards are not the only thing that is productive in this historic Cape Town suburb. Its property market continues to bear fruit for both buyers and sellers, particularly for properties priced under R10 million. This is according to Francois Venter, Western Cape Regional Sales Manager of
Jawitz Properties.
Since the beginning of the year, 89 homes have sold to a combined value of just over R483 million. According to figures from PropStats for the period 1 January to 31 August, the most active segment of this market was properties valued under R5 million (55 homes), followed by those valued from R5 million to R10 million (27 homes). Together, these two segments account for 92% of sales to date. Five properties sold in the luxury category (R10 million to R15 million) as well as two in the 'trophy' category (over R15million).
The average price at which homes were listed in Constantia was R6,385,949, whereas the average selling price was R5,420,034. "The 15% average difference between selling and asking prices indicates that sellers are potentially still overpricing their homes to the market, particularly at the outset," says Venter.
The number of days a property stayed on the market before being sold during this period was an average of 145 days, or nearly 5 months, which exceeds the national average of just over 15 weeks.
Sellers need to ensure that they list their properties to the market at the most realistic price possible, taking into account what properties have recently sold and what properties are currently on the market, says Venter.
"Buyers don't reject a property they only reject the price," he says. "Regardless of the market; good, bad, or indifferent, buyers will always respond within 5% - 10% of the asking price if they see value. There is no such thing as a property that cannot sell; there are only sellers who are reluctant to accept what the market is prepared to pay."
He says a
Constantia property that is priced competitively and realistically to the market should by all accounts sell within 10% of the asking price within three months. Properties that are not priced realistically remain on the market for a long time and will ultimately sell anywhere from 15% to 30% below the asking price.
"There are some great success stories where sellers list their properties at the correct price and sell their properties quickly; and there are some examples where the opposite is true.
"We're seeing this trend across the Western Cape; the longer a property stays on the market, the greater the risk of receiving lower offers. The market never lies," Venter concludes.
