A/S PROPERTY HAS HAD 4 OF ITS BEST-EVER MONTHS
Category News
Rowan Alexander, Director of the Cape Town estate agency, Alexander Swart Property, has repeatedly been more upbeat and positive than most others analysing the Cape Town residential property market and Alexander Swart's clients have testified that this attitude can reap rewards: they say the whole Alexander Swart team is imbued with the same optimism.
"This will come as a surprise to some," says Alexander, "but in the Northern Suburbs of Cape Town, despite the negative prospects for the economy and other disheartening factors, the residential housing market has remained positive over the last 12 months and we are now seeing the first 'green shoots' of a genuine revival."
Those attending their evening workshops on buying, selling and investing in property (which have become a regular feature on the social calendars of some northern suburbs residents) heard Alexander say recently that their agency is now looking back on four of the best months it has ever had. At a time when many agencies are reporting reduced sales and are handicapped by a lack of buyer confidence, this statement created quite a stir and has led to Alexander having to amplify and explain his views.
"In the market that we serve, which is focused mainly on homes in the Brackenfell, Kraaifontein and Durbanville areas, buyers are largely unconcerned by political and economic events. They have shown a remarkable resilience in the last two years by continuing to look for homes despite the negative news reports (especially the revelations of the Zondo commission), the possible inability of Ramaphosa to get on top of his left wing partners in the ANC, and the threatened reduction of the rand to junk status. This buyer optimism has ensured that homes in the Alexander Swart territory priced from R1 to R3 million have continued to rise in value at ± 8% per annum."
What the average, fearful home investor has to appreciate, says Alexander, is that those handling investments in SA have always been well informed "ahead of the pack" about forthcoming trends and have already factored in the likely problems that we will encounter. There is therefore no need for too much despondency.
"My analyses of the Northern Suburbs housing market indicate that in the coming year we will actually see an improvement in most price categories," he says. "SA has shown the ability to survive these negative periods. The steadily growing middle class has no wish to emigrate and in most cases cannot afford to do so. The current market, short of stock and sometimes hesitant, offers many very good buys and my concern is that those who do not appreciate this and hold back now, will miss out on the future price escalations which I expect to become evident over the coming year. This is particularly true of the buy-to-let market where there are currently big differences between the rentals being achieved and the bond repayments on properties but these I anticipate will be evened out in the coming year."
In the current market, says Alexander, it will be wise for the salaried, man-in-the-street buyer, or potential buyer to take the advice of many financial consultants and live more conservatively. This means erasing as much debt as possible, operating with cash and not with credit and cutting budgets and spending. Ideally a significant portion of most middle class incomes should be set aside each month. "Living leaner is not as difficult as some think and, if it makes it possible to invest in property in our areas, I assure them that they are choosing an asset class that has proved itself to be resilient, and in my view, will revive significantly next year."
For further information, contact Rowan Alexander on cell phone 082 581 3116 or by email : rowan@asproperty.co.za
Author: Independent Author
