New confidence is now evident in Cape Town northern suburbs property market
Category News
"New confidence is now evident in Cape Town northern suburbs property market."
Three top Alexander Swart agents bullish about prospects for 2019
Rowan Alexander, director of Alexander Swart Property, asked three of the company's top agents, Stefan Engelke, Marie Grant and Wian Ingram, to discuss with him their perceptions of how 2019 will play out in the property sector, and how they plan to improve still further their performances this year.
All three agents were top award winners and all had their best-ever year in 2018, while the company itself increased its sales turnover by 50% in Durbanville and 30% in Brackenfell, Kraaifontein and other areas. All three also said that they foresee 2019 being a better year than 2018, one in which they will be able to raise their sales by a further 30% - 45%.
According to Marie Grant there is a steadily growing perception in the market that the political uncertainties of 2018 are less worrying now, and buyers feel that they no longer need to hold back and wait to see how the future will unfold.
"Realising that market conditions are still very much in favour of the buyer, many formerly hesitant purchasers are now committing themselves to acquiring a new home this year," she said.
New confidence, says Engelke, appears to be based on the expectation that the ruling political party will come through the May elections in a stronger position to continue the reforms from which South Africa is beginning to benefit - and the recent decision to hold interest rates at current levels has also generated confidence.
Both Engelke and Ingram said that in the Brackenfell market homes priced from R1m to R2m are still very much in demand - and it is in this market that they are most active. However, says Ingram, there are clear indicators that, whereas previously the call was mainly for homes in the R1,2m - R1,8m price bracket, the demand has now broadened and this year he anticipates selling more homes in the R1,8m - R2,2m range. Already, say these agents, they are receiving numerous enquiries and both are budgeting to raise their turnovers by at least 30% this year, i.e. they are each expecting to sell two to three homes per month.
"Fewer than 24 sales each by the end of this year will be seen by us as failure'" said Ingram.
Durbanville's future, said Grant, is also looking good because the area continues to see an influx of new arrivals, most looking for new homes in the R2m - R3m price range, but some still able to pay R5m or more. Several of those who bought from her two or three years ago, she said, are already planning to upgrade as their families expand. Grant, too, expects to raise her sales by 30% - 50%.
Looking at the general trends in the market, all three agents agree that today's buyers tend to be less house-bound than were their parents. They place the emphasis on lifestyle and getting away for weekends regularly, rather than on domestic activities. For this reason they want homes that can be locked and safely vacated for a few days, have small gardens and require minimal maintenance. They are ready to accept more compact homes provided these are chic, have good quality finishes and, in many cases, are close to schools. According to Lightstone, millennials, ie those born between 1977 and 1994 and now buying a home for the first time, as a result of ongoing property price rises in the last two decades have to pay three times as much as those in the 40 to 60- year-old age group paid at the time of purchase. This also, says Ingram, means that properties have to be smaller in order to suit their budget.
All three agents agreed that while long hours and weekend work are essential in the property industry, in the coming year they will themselves pay attention to achieving balanced lifestyles - and to benefiting from the educational courses on which Alexander Swart places great importance.
Summing up the opinions of these and other top performers at Alexander Swart, Rowan Alexander said that the areas in which the company operates, have proved to be the best performers in the Cape Town property market, and his "highly motivated" team believe that in 2019 they will achieve another record year.
"Brackenfell, Kraaifontein, Durbanville and surrounding areas", he said, "are still outperforming almost all other Cape Town surburbs in the property sector and Alexander Swart is fortunate to be one of the top agencies in this buoyant market."
Author: Independent Authour
