What is happening to the property market in Constantia?
Rob Downey, who works with the Chas Everitt Constantia Team, has been asked this question frequently and in response prepared this report with a focus on the facts, and less on the wide-ranging opinions on the topic.
Some recent press reports shared on social media are nothing but wild speculation about the current number of properties on the market in Constantia demand a factual response. By researching the figures and looking at the major portals as at 29th January 2020, Rob determined the following from the dominant portal being Property24:
|PROPERTY||FOR SALE||TO LET|
In every market, there are always properties that are ‘quietly for sale at the right price’ but are not being actively marketed but these are not usually serious sellers and it is neither useful or possible to accurately measure such ‘non-listings’ that may be for sale.
Another exercise was to look at the sales which took place for the full year in 2019 giving a calendar period. Below is the number of sales which transferred during the period 1 January to 31 December 2019 as per CMAinfo:
|Houses including Security Estates||123|
|Apartments (Sectional Title)||9|
Constantia, as one of the more affluent areas within the Western Cape still offers a wide price range. The lowest price for a residential property currently starts at R2.85 million, a three-bedroom townhouse.
Most properties in the high activity range are priced below R10 million. A significant drop in sales activity starts over R10 million and tapers off quite dramatically as prices increase. The most expensive property sold in 2019 was in Constantia’s exclusive Silverhurst Estate sold at R34 Million.
Of the 123 properties sold in 2019, 10 were sold over R20 million. 24 properties were sold in the R10 million up to R20 million range, leaving the vast majority of 89 properties sold in the range below R10 million – with half of those being under R5 million!
Access to information on rentals is far more restricted. Taryn Retief who manages the Rentals in the area for Chas Everitt noted that a lot of properties that have not sold over the last year have now been converted to successful rentals.
“We have a number of corporate clients, socialites and overseas clients who are preferring to rent rather than buy due to prevailing market uncertainty. Rentals also need to be realistic and competitively priced in order to secure a good tenant. Chas Everitt offers a full comprehensive rental package for any property in the area, with monthly rentals ranging between R20,000 to R80,000,” said Taryn Retief.
Clearly a buyer’s market will remain with us for some time and many sellers are listing at prices that are not achievable. It is undoubtedly a good time to get good value for your money in the area. Buyers are entitled to get from the agent a recent street or neighbourhood sales reports so that they can make an informed decision about their offers. A professional agent will always provide the facts to those that ask, be they sellers or buyers.