What is the state of the City Centre property market after COVID-19?
Category Cape Town Property Market
Despite the harsh economic and social impact of the coronavirus pandemic, Cape Town's Central City residential property market has proved to be resilient. In 2020, the City Centre saw property investments of almost R14 billion according to the CCID and 2021 looks even more promising.
Quay 1 City Centre specialist brokers have witnessed some notable changes in the residential property market: more y-o-y first-time buyers and an increase in buying activity from outlying investors, both segments taking advantage of the considerable decreases in the interest rate. Our brokers have also observed a shorter time on market for properties, signaling that there is a segment of motivated sellers who are pricing their properties
realistically and thereby reducing the time it takes to sell.
According to listing information obtained from Property24, there has been an increase of 35% in the number of properties listed for sale in Cape Town's City Centre when compared to the same time last year, this illustrates why correct pricing is such a crucial component to a successful sale in the current climate.
Josh van Tubbergh, Senior Broker in the City Center for Quay 1 International Realty notes that "interest rates have certainly been a blessing for many however there is still more supply than demand which means if one is not competitive with their prices, they face the risk of losing out on the serious purchasers to other listings that may offer more or the same for a lower price. The significant decline in rental demand and lower rentals being achieved is also a contributing factor to the decline in sales prices on average as investors take into account
the potential yield when considering pricing.
Indeed, statistics show that the average sales price per square meter has decreased by roughly 5% from 2019 to 2020 and an average difference of -15,2% between listing and selling prices during 2020.
Interested to know how the Covid-19 pandemic has impacted your property's market value? Please click on the button below to generate a digital valuation and our specialist brokers will be in contact. CLICK HERE
Author: Ryan Greeff
