Helen Melon Properties: Carte Blanche: Home Sales Conundrum
Category Property News
When it comes to the property market, one thing is certain, that over time, the more things change the more they stay the same.
That's why this recent segment on Carte Blanche didn't make too much sense. The segment was introduced, "The property market is declining at an alarming rate."
And then, of course, Derick Watts went on to explain why. What this segment quite narrowly explored was two distinctly upmarket suburbs in South Africa, which have both seen a sharp decline in prices over recent years. One, a beautiful region on the eastern side of Pretoria, and the other, Bantry Bay, on Cape Town's sought-after Atlantic Seaboard. The show went on to explain that investors aren't seeing the returns they used to, and many sellers are now selling for less than they purchased.
To be honest this is a story that keeps repeating itself. Property investors are quick to make enormous profits when the market is booming, but just as quick to decry the market when they don't. Even some of the top investors in the country like Magnus Heystek bought at the top end of the market when banks were throwing around credit like confetti. He now can't sell or rent out this property. The market turned and now they are stuck. Even the best don't know it all.
The property market always moves in cycles with many highs and lows on the way. We at Helen Melon Properties still believe that property is one of the best long-term investments you can make, but mostly we sell homes.
So why is the market down? The stagnant economy is a definite reason, as well as a lack of confidence both politically and economically, particularly from abroad. It's also only natural that the market will correct after a period of sustained boom.
In the Plettenberg Bay region we have also seen a drop in the market, but nothing as drastic as those mentioned. We believe the market is stable, and that by setting a realistic selling price, you will do just fine. There might not be big bucks to make on a flip, but now is still definitely a good time to buy, as long as you have medium to long term vision.
The one positive segment on the show was a look at Cosmos City near Lanseria airport. A new area where properties sell for between R500k - R700k. Business is booming according to local estate agents. Not only are they seeing great growth in house prices but rentals are making for excellent returns on investment.
In Plett, we have also seen a good upsurge in the lower end of the market where apartments going for under a million are being snapped up.
On a final note, after nine years of South Africa's economy been sold out from under us, we feel we have turned a corner, but it's a slow turn. Hopefully, our new(ish) leadership can kickstart our economy and create jobs and do what our country so badly needs. Then watch the property market rebound.
In the meantime, if you are looking to buy or sell property in the region or just want to chat about the market in general, you know where to find us.
Yours in Property
Author: Helen Ward