The swanky Atlantic Seaboard, which until recently appeared to be reasonably immune to the overall housing slump, is now also being hit by negative sentiment.
New data from Seeff Properties' Atlantic Seaboard office show that sales of sectional title apartments in Fresnaye, Sea Point and Bantry Bay have halved from January to October 2008 (y-o-y).
Seeff sales specialist Adrian Mauerberger says in 2007 around six apartments were sold every month in this area in the price range R2m plus. Atlantic Seaboard apartment sales are now down to an average three per month.
More worrying is the large number of units coming on to the market. According to Mauerberger's statistics, some 117 sectional title apartments are currently for sale on the Atlantic Seaboard. He says given that only three units are selling every month it would take 40 months (or more than three years) to sell all of this stock. "That's assuming that not one further listing comes on to the market.'
Thanks to reader TA for the link!
3 comments:
Some owners of properties in HoutBay are ready to drop their prices from R3M to about R2M as they cannot sell, no buyers, and people cannot get bonds Of course houses were overpriced to begin with. The estate agents have shot themselves in the foot by letting the owners believe their houses were worth so much in the first place!!
Only 3 units sold per month in the Sea Point/Fresnaye area!!! This area is swarming with agents that must easily number well over 100.
This area is way overpriced in an already overpriced city so its anybody's guess how much these prices will drop.
As for Hout Bay, I still cannot understand why prices are so high there? It was a beautiful place until half of Ciskei and Transkei moved in.
i think this information is somewhat misleading, i think what adrian meant was that his team, or his office are only making 3 sales a month. i just looked at the latest sales figures for Sea Point for October, and I see there were 18 sales. 17 Sectional Title, and 1 freehold House.
Source: RPPR
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