Interest rate cut another boost for the property market
Category News
The Cape Town property market continues to defy national trends and remains the strongest as we head into the busier summer months. High-demand areas such the Hout Bay/Llandudno in particular, have remained active with sellers still achieving good prices.
Lightstone also recently highlighted the resilience of the Cape property market. Prices have held firmly compared to the national outlook which shows a contrasting marked downward trend according to the latest FNB House Price Index (HPI). Lightstone additionally reports that the Cape remains the preferred choice for those switching provinces, especially from Gauteng, but also from elsewhere, including international buyers.
The Cape market also performs the best in terms of the sell-to-buy category with buyers investing more into property here compared to elsewhere. Cape Town consequently achieves more sales in the higher price categories above R1.5m-R3m. The data shows that up to 70% of buyers who move to the Cape end up in higher-value properties. Overall, the improved economic indicators, including the recent 25bps interest rate cut which we hope is the first of more to come, is a further boost for the property market as we head into the warmer months.
Additionally, in less than 100 days in office, the benefits of the GNU (Government of National Unity) are already filtering through. CPI inflation has declined to 4.4% which now sits below the Reserve Bank's target range. The Rand has strengthened by late September to around R17.20 to the US Dollar, from a high of R19.2 in late April. The broader economic outlook is also much improved due to the stable electricity supply and a lower fuel price. Meanwhile, billions of Rand is flowing into SA shares and stocks and business confidence is edging up.
According to Good Governance Africa (GGA), the Cape Town Metro ranks as the best run in the country out of 257 municipalities. We head into the latter part of the year with a stable national and local government while mayor, Geordin Hill-Lewis remains very visible as he forges ahead with revitalising the city's infrastructure and services to cater for the growing population.
Aside from good basic services, Cape Town has some of the best schools, both within the Hout Bay area, and others easily accessible, as well as access to UCT, further adding to the demand for property. Property analysts believe that the market has now largely bottomed out which signals a good time for buyers who could reap long-term benefits if they buy at the right time in a stable area.
If you are thinking of selling, then now is a great time to talk to Seeff about what your property might sell for in the current market. A reminder that if you sell exclusively with Seeff right now, you could stand a chance to win R1 million in Seeff Cash Prize Competition as we celebrate 60-years of real estate success.
There is always a shortage of good sales and rentals stock in the Hout Bay/Llandudno area as demand continues to exceed supply. Seeff is a market leader in the area and our specialist agents stand ready to assist with your property needs. Don't miss out on this favourable phase in the market, contact Seeff today!
Yours in Property
Author: Seeff Hout Bay
