The shift back to the suburbs has been good for Cape Town’s residential sales and rentals markets according to the Seeff Property Group.
After initially struggling in 2020 and lagging other metro areas, the market bounced back in 2021 to record highs and our agents are now seeing a shortage of properties to sell and rent out in many suburban areas across the city, it said.
Across most of the suburbs, properties are still selling well within 8 to 12 weeks on average depending on the price band. Correctly priced properties are not only selling faster, but achieving better prices, generally within about 5% to 7% of asking prices on average.The vast majority of sales across the Cape Metro over the last year fell below R2 million with some 40% below R1.5 million.
While many are selling to downscale or retire, Groenewald said that sellers are also looking to upgrade. With the market slightly flatter, sellers must now focus on market-related asking prices or they could miss out. It takes 6 to 8 weeks to sell, and sellers often have to settle for 5% to 10% less than their asking price. Overpriced properties simply do not sell.
Many sellers are offloading their secondary properties. These are often tenanted which is a drawback for buyers looking for own-use units. A concern is a tendency for sellers to “test” the market with high prices which holds up sales. If correctly priced, however, properties are selling quite quickly.
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