According to Lightstone, which tracks deeds office registration figures, the average price of freehold property has decreased from R7 437 000 in 2009 to R5 480 000 in 2011, a decrease of some 26%. "Current selling prices are almost on par with those prices achieved of 2006," says Venter.
Camps Bay has always been a desirable area because it offers the benefits of a coastal lifestyle combined with its proximity to the city and shopping areas like the V&A Waterfront. During the previous property boom, property prices were inflated by foreign buyers taking advantage of the highly favourable exchange rates that prevailed. But with the rand strengthening to current levels, and the onset of the global recession, foreign buyers are in the minority and prices have normalised.
This has led to an influx of younger families, as evidenced by the fact that many pre-primary and primary schools have long waiting lists. "We're finding that people who grew up in the area, then left to work overseas or in Johannesburg, now want to return to Camps Bay to raise their families."
Many are finding value in the wide range of 'fixer-upper' properties available. "Young families know that it makes sense to buy an older home in a good neighbourhood like Camps Bay and then, over time, renovate it to their own standards."
Venter says that so far this year, 31 transfers of freehold properties have been registered in the deeds office for Camps Bay. On average, the selling price has been 21.2% below the asking price. It is clearly illustrated in the figures this year that the market under R7 Million in Camps Bay is the most active with 21 sales (67.7%) out of 31 sales to date. The market between R7 to 10 Million having recorded 6 sales (19.3%) and R10 million and above with 4 sales (12.9%)
According to Lightstone, freehold properties in Camps Bay remain on the market for on average 393 days. There are, however, properties that have sold much quicker than the average in the area, but it all depends on sellers' willingness to price their properties in line with market realities. For example, some properties have sold within 3 -4 months, with the selling price being 11.2% below the asking price. Properties that stay on the market the longest are those that suffer the greatest draw downs from asking price to final selling prices," says Venter.
Paula Neild is the Marketing Manager for Jawitz Properties South Africa. Contact paula@jawitz.co.za or call 011-880-3550. Jawitz Properties specialise in South African property for sale and property rentals throughout South Africa. Visit http://www.jawitz.co.za for more information.
