With the onset of Covid and the lockdown I observed a few significant shifts in the market where I specialize including the following:
- The luxury price range above R7,500 000 had ground to an abrupt halt particularly between April and July given restrictions on movement.
- High end luxury sales along the Atlantic Seaboard were limited to a handful of transactions in Mouille Point, The Waterfront and Bantry Bay/Clifton with most sales taking place between R2 000 000 and R4 500 000. These were Sectional Title sales where Buyers saw value and low risk.
- I personally concluded sales in various areas including Sea Point, Green Point, De Waterkant and Cape Town City Centre. Buyers recognized that we have priced correctly for this market and enjoyed buying in a market where prices had been adjusted downwards.
Here are just a few of the post lockdown sales concluded by Michael.
In terms of Valuing and listing properties for sale, Sellers must recognize that property prices peaked in 2017 and have been trickling downwards ever since and cannot expect to achieve a sale unless they agree that pricing needs to be realistic.
Buyers on the other hand need to be educated and I take time to demonstrate that the prices we are asking are realistic and based on current market conditions.
The discount is already factored into the price and it takes effort to mitigate Buyer expectations of concluding a sale based on a low offer. Here is where trust and integrity play an important part in gaining the respect of the Purchaser.
Going forward: I have noted an uptake in higher priced properties including a luxury apartment we very recently sold in Helenslee at the V&A Waterfront for R13, 850 000. Our Purchaser is for overseas and the deal was aided by a favourable foreign exchange rate.
Get in touch with Michael Bester to see how he can assist you with your real estate needs.
