Stable repo rate bodes well for continued growth in Cape property prices.
Category Property news
The stable interest rate bodes well for the continuing growth of Cape property values, according to Mike Greeff, CEO of Greeff Christie’s International Real Estate. Greeff was commenting on the recent announcement by Reserve Bank Governor Lesetja Kganyago at the end of the first Monetary Policy Committee meeting of 2017. The committee held the repo rate at seven percent. “The governor went on to say that the bank considered South Africa could be at the end of the rate hike cycle, and this sentiment is welcomed by the real estate industry, however there is still a need for caution when borrowing money, which the governor also expressed,” says Greeff.
Predictions by S&P Global Ratings are for a nominal house price growth of 5.5 percent in South Africa for this year. “This implies stagnation in home prices in real terms, but these figures are for the entire country. Cape Town real estate selling prices tell a very different story, with an increase of 12% in the average selling price of properties across the board, in terms of suburbs and property types. Cape property prices have historically bucked the national trend showing much healthier returns than the national average,” adds Greeff. “Record selling prices have been achieved by Greeff agents in virtually all our areas of operation, and in all sectors from affordable homes on one end of the spectrum through to luxury homes in the exclusive enclaves, ” reports Greeff. Breaking through price ceilings has a positive spin off for all properties in a certain area, raising the average and setting a new bar, explains Greeff. He adds that confidence in Cape Real estate as an investment is currently at a healthy level and asset growth options for investors are particularly interesting in the lower end of the market.
Notably vibrant growth is to be found in sectional title properties in the central southern suburbs, according to Greeff. A recent example is the sale of a 117m2 apartment by Greeff agents in Grove Ave, Claremont which fetched R4.5million, beating the previous record selling price of R4 million for a 127m2 apartment in Grove Walk. A Greeff agent achieved a record selling price of R3.9 million for a townhouse in Caraden Gardens, Kenilworth – previous record high for this complex was R2.95 million. Greeff agents also achieved a record price in Wessels Road, Kenilworth for a house on 635m2 , which sold for R4.15 million, to beat the last record holder, a house on 835m2 which sold for R3.8 million in Third Ave, Kenilworth.
“In Southfield, our agents achieved a selling price of R2.05 million for a four-bedroom, two-bathroom family home. This beat the previous top selling price of R1.85 million. In Zeekoevlei, a notable record price of R3.4 million was achieved by Greeff agents for a four-bedroom, two-bathroom family home, beating the previous record selling price of R 2.75 million.
“There has also been healthy growth in the mid-priced sector in Constantiaberg and the Southern Suburbs,” says Greeff.
In Tokai, Greeff agents broke their own selling price record of R6.35 million in 2016 to hit a new high of R6.8 for a home in Lismore Ave.
Record prices were also achieved by Greeff agents in Barn Road Bergvliet – R9.25 million to beat a previous high of R7.062 million, Rambler Road, Diep River – R4.6 million, to beat a previous high of R4.3 million and Bramble Way, Meadowridge – R4.2 million to beat a previous high in that road of R4.15 million,” reports Greeff.
Greeff agents achieved significant and record prices in Bishopscourt Village Newlands, Rondebosch and Claremont in the course of the 2016 and continued demand for properties in these areas, close to leading schools is set to drive selling prices higher still in 2017, according to Greeff.
Author: Greeff
