Average selling prices are up in Constantiaberg and City Bowl

There are indications that the property market in several areas of the Cape Peninsula, notably in Constantiaberg and the City Bowl is beginning to nudge its way towards an upturn, according to Mike Greeff, CEO of Greeff Properties, an exclusive Affiliate of Christie’s International Real Estate. Greeff maintains that property prices in these areas have been edging up over the past year, indicating a subtle turn in favour of sellers.   “The PropStats figure for the average selling price of free-standing homes in the Constantiaberg suburbs over the last six months was R3 190 137, which was up by 1.5% on R3 143 000 which was the average selling price for the six months preceding that,” says Greeff, adding that the average differential between the asking price and selling price, narrowed by 4.3% to minus 11% in the past six months from minus 15.9% in the six months preceding that. “The favourable decrease in differential indicates a likelihood of a favourable shift in the direction of sellers but in most cases, it is probably an indication that sellers are pricing their properties more realistically,” says Greeff. In the City bowl, the PropStats figures reveal a buoyant market ; for the past six months the average selling price of free- standing homes was R4 225 883. “This is a whopping 23% up from R3 218 000 – the average selling price over the preceding six months,” says Greeff.  He adds, however, that the differential between asking price and selling price increased to minus 11.6% in the most recent six month period from minus 9.6% in the preceding six months. “This indicates that while there is more buyer interest and houses are selling for higher prices, there are still a significant number of overpriced properties on the market and the voice of the buying market in this particular market segment is made loud and clear by that widening differential,” says Greeff.

“Overall, we’re feeling very  positive at this point in time as the average selling prices of free-standing homes in both the Constantiaberg and City Bowl suburbs, at the start of 2103, are on a much healthier  footing for the real estate industry as a whole, when compared to average selling prices  recorded at the start of 2012,” says Greeff. He was commenting on PropStat figures for the sales of free-standing homes in Constantiaberg and City Bowl during the period 1 January to mid March 2013 which showed that when compared to the same period in 2012, average selling prices have risen, while the differential between the asking price and the selling price has narrowed; In Constantiaberg, the average selling price for the period in question was R3, 980 190 – 18% up on the same period for 2012, when it was R3 374 500. The differential between asking price and selling price dropped by 3.4 % from minus 14.9% in 2012 to minus 11.5% in 2013.

In City Bowl PropStats records show the average selling price in during the period 1 January to mid March 2012 was R2 909 667, while from 1 January to mid March 2013, it rose to R4 050 129 – an increase of 39.2%. The differential between asking and selling price dropped to minus 8.2% in the January to March 2013 period from minus 9.6% in January to March 2012 period.

“Cape Town property figures continue to defy the more depressed or flat national graphs,” says Greeff, adding that Cape Town’s allure appears to remain constant in spite of reports of doom and gloom elsewhere in the country.  “With 2014 being the official year of the Mother City’s reign as Design Capital of the World, we’re very optimistic about foreign interest, particularly with our Affiliation to Christie’s International Real Estate which puts us in direct contact with 127 affiliates in over 40 countries worldwide,” adds Greeff.

Recent sales by Greeff Properties in the Constantiaberg suburbs include, among others, a five-bedroom five-bathroom  home on a 4 000m² erf which sold for R17.8 million in Constantia Upper,  a four-bedroom, three-bathroom home on a 6 281m² erf  in Bishopscourt, which sold for R15. 75 million, a four-bedroom, three-bathroom home on 1 350m² in a new security estate in Constantia Upper for R11, 25 million and a six-bedroom, four-bathroom home on a 4 345m² plot in Constantia Upper which fetched R10.5 million.  

In City Bowl Greeff’s recent sales include a three-bedroom, two-bathroom home on 529m² for R6.2 million in Oranjezicht, a three-bedroom, two bathroom home on a 563 m² plot for R4.1 million in Oranjezicht and a three-bedroom, two-bathroom house on a 228m² erf  for R2.7million in Vredehoek.