The summer selling season is winding down. Were sales targets met? Are there more Estate Agent culls on the horizon?
7 comments:
Cynik
said...
Not quite to the topic, but on the subject of bubbles and bullshit. Was at the Mandela Rhodes 'synergy' bar last night, going through the building up past the restuarants on ground floor - quiet as a graveyard - the 7th floor bar/restuarant on a Friday night in a 'buzzy' part of Cape Town - not a single diner between approximately 30-40 tables and if it weren't for the private party I was at, perhaps three other patrons. How is this place staying alive? Who is throwing money down the drain just to keep up appearances?
Well just did a trip around Milnerton. Two houses with sold stickers on the for sale signs (one Rawson, one Leapfog). They did not sell quickly - on the market for several months if I recall correctly.
Plenty more with for sale signs from the above two and four other estate agency franchises. So at least six franchises are operating in the area. I suspect the real money is in selling the franchises...
Asking prices are still high so unless the owners are willing to accept a chunk less I suspect they will sit with the property for a long time.
I've seen a few houses get taken off the market with no sold signs and the same cars still in the driveways...
It will be interesting to see what the situation looks like post 2010 world cup with the cape in winter.
The rental market for houses is also sky high. What is on offer is that 80% of the offers for long term rental for a house 4 bed house is 25K per month or higher. To pay for such a house one should earn R 1 Million/year minimum. Now I believe there a people earning 1 Million but not 80% of the Cape population. Is this the 2010 soccer greed effect and prices should come down after the World Cup?
Gross rent multiplier = Purchase price/ annual cost of renting For New York apartments: 1990’s =10 2008=27 2010=24 Newlands, Cape Town 2010: R16300 (monthly rental for 4 roomed house)*12*24=R4,694,400 which equals the price of a smaller house sold next door to the rental property.
Newlands cost versus rental = New York. The only difference is that you get more housing space in Newlands.
7 comments:
Not quite to the topic, but on the subject of bubbles and bullshit. Was at the Mandela Rhodes 'synergy' bar last night, going through the building up past the restuarants on ground floor - quiet as a graveyard - the 7th floor bar/restuarant on a Friday night in a 'buzzy' part of Cape Town - not a single diner between approximately 30-40 tables and if it weren't for the private party I was at, perhaps three other patrons. How is this place staying alive? Who is throwing money down the drain just to keep up appearances?
I just put clients in the mandela rhodes at R1100 per night. that is super cheap for the type of room you get.
Well just did a trip around Milnerton. Two houses with sold stickers on the for sale signs (one Rawson, one Leapfog). They did not sell quickly - on the market for several months if I recall correctly.
Plenty more with for sale signs from the above two and four other estate agency franchises. So at least six franchises are operating in the area. I suspect the real money is in selling the franchises...
Asking prices are still high so unless the owners are willing to accept a chunk less I suspect they will sit with the property for a long time.
I've seen a few houses get taken off the market with no sold signs and the same cars still in the driveways...
It will be interesting to see what the situation looks like post 2010 world cup with the cape in winter.
LS
The rental market for houses is also sky high.
What is on offer is that 80% of the offers for long term rental for a house 4 bed house is 25K per month or higher. To pay for such a house one should earn R 1 Million/year minimum.
Now I believe there a people earning 1 Million but not 80% of the Cape population.
Is this the 2010 soccer greed effect and prices should come down after the World Cup?
@ sepp
there definitely seems to be a demand for the sub R7k per month family home in the southern suburbs judging from gumtree wanted ads.
There were 2 houses in Tokai that were sold very quickly recently. Why is it that houses are in demand in that area?
Gross rent multiplier = Purchase price/ annual cost of renting
For New York apartments:
1990’s =10
2008=27
2010=24
Newlands, Cape Town 2010:
R16300 (monthly rental for 4 roomed house)*12*24=R4,694,400 which equals the price of a smaller house sold next door to the rental property.
Newlands cost versus rental = New York. The only difference is that you get more housing space in Newlands.
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