By Doug Mattushek - 01 August 2019Views : 2325
The property market in Cape Town is continuing on it’s decline, particularly in high-end sales, estate agents confirm.
Ross Levin, the managing director at Seeff Atlantic Seaboard, told the Cape Argus that the expected upturn following elections has not come, leaving sales volumes floundering in the Cape Town City Bowl and the Atlantic Seaboard.
According to Seeff's data, there were 97 sales on the Atlantic Seaboard from January to July in 2018. During the same period this year, there were 88 sales, marking a significant decrease.
"It is largely the lower price bands which continue seeing the highest volume of sales - market is down by about 40% from the highs of 2016/17 about 15% from 2018," said Levin.
"High-end sales remain especially slow. There is plenty of stock and sellers and prices are falling. Prices have come down and sellers are negotiating for the first time in years, thus creating opportunities for buyers to find more affordability in the market that has not been the case for many years.
"The high transaction costs, most notably transfer duty, is also impacting on the demand for property. There is also still some concern about investing, hence many wealthy buyers are buying at much lower levels and possibly placing some of their money overseas rather than investing more in South Africa."