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Market Review: JANUARY TO JUNE 2022

Category Property Investment

The Cape Town residential property market has shown early signs of recovery in the first half of 2022. When speaking with agent colleagues around the City Bowl and Atlantic Seaboard they have generally reported experiencing more buyer activity, with those buyers being more focussed in their search and making relatively quicker decisions when buying. There is a consensus that we are finally coming out of the bottom of the property cycle and beginning the road to recovery. It is 'early days' and hopefully it is a sustained upturn in the property market cycle, as we move steadily out of a buyers' market. The 'back to business' environment that has followed lockdowns and restrictions, coupled with overseas visitor numbers returning to levels close to those last seen in 2019, has started to filter through to renewed confidence in the property market. Both local and international buyers are actively in the market, looking for good value, where they still have a degree of choice, but understanding that we are starting to move away from a 'buyers market'. Sellers will therefore need to continue to be keenly and fairly priced with the properties they wish to sell. This review aims to look at broad trends for residential sectional title in four property suburbs, utilising data extracted from CMA Info, which draws from actual sales registered in the Cape Town Deeds Office. As always, there is a time lag in data pulling through, which may impact the 2022 set of data for the first two quarters. We are therefore providing analysis from the data currently available. Overall, based on this data, it seems that we may be starting to see an adjustment in the market, with relatively less sales overall, but higher average selling prices and R/m2 values than in the same period of 2021. In essence, a progression towards a better market for property owners wishing to sell.

I'm pleased to announce that Kinesis Property has recently opened a retail office in Mandela Rhodes Place, Wale Street, where I am now based on a daily basis to meet with clients to discuss their property requirements. Please contact me if you would like to pop by for a coffee/tea and chat.

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Best regards,

Richard Boxford, Kinesis Property.

 

 

City Centre (CBD)

CMA Info Data

 

Jan - Jun 2022

Jan - Jun 2021

Number of Sales

 

71

145

Average Selling Price

 

R2,108,035

R1,930,408

Average R/m2

 

R30,796m2

R29,645m2

Average Days on Market

 

106

109

Sales Under R2m

 

44

98

Sales R2m to R3m

 

16

33

Sales Over R3m

 

11

14

 

 

As always the Cape Town City Centre (Central Business District) property market is bigger in volume than adjoining residential property nodes. At present the overall number of sales reflecting and recorded for the first six months of 2022 is lower than for the same period of 2021. However, the average selling price and average R/m2 values of apartments selling so far this year have both improved. Although the average time spent on the market before selling is unchanged, the resulting sales are achieving higher selling prices. The split between sales under R2m and those over R2m remains fairly consistent, with some 60% of sales taking place in the under R2m segment of the market. This simply reflects the preference of the majority of investors and first time buyers to buy property under R2m. We may be seeing a 'correction' of the market, with a decrease in sales volumes in the medium term, but an increase in average sales values. At present there are approximately 10% less apartments for sale in the City Centre compared with most of 2021.

 

 

Foreshore

CMA Info Data

 

Jan - Jun 2022

Jan - Jun 2021

Number of Sales

 

8

12

Average Selling Price

 

R3,023,000

R2,824,158

Average R/m2

 

R38,944m2

R35,674m2

Average Days on Market

 

143

190

Sales Under R3m

 

6

8

Sales Over R3m

 

2

4

 

 

As with the City Centre, the adjoining residential node of the Foreshore currently shows a lower volume of sales taking place, but an improvement in both average selling prices and average R/m2. Once again the lower segment of the Foreshore sales market, under R3m, shows broad consistency with the 2021 market, with the majority of actual sales occurring in this range.

 

 

De Waterkant

CMA Info Data

 

Jan - Jun 2022

Jan - Jun 2021

Number of Sales

 

26

29

Average Selling Price

 

R3,124,423

R2,852,998

Average R/m2

 

R37,943m2

R38,005m2

Average Days on Market

 

73

109

Sales Under R3m

 

16

20

Sales Over R3m

 

10

9

 

 

For the first half of 2022 De Waterkant shows less variation in volume of sales taking place than the other three precincts analysed. Average selling prices show a healthy recovery, whilst average R/m2 is only very slightly down on 2021.

 

 

 

V&A Waterfront

CMA Info Data

 

Jan - Jun 2022

Jan - Jun 2021

Number of Sales

 

11

17

Average Selling Price

 

R8,759,091

R9,041,765

Average R/m2

 

R79,497m2

R61,950m2

Average Days on the Market

 

90

167

Sales Under R10m

 

8

12

Sales Over R10m

 

3

5

 

 

The V&A Waterfront, remains a niche, higher value property market, with lower turnover of properties than other residential nodes. Current data shows a decrease in the volume of sales, slight decrease in average selling prices, set off against a significant upswing in the average R/m2.

 

 

Please do not hesitate to contact me at anytime to discuss your property requirements, including a free, no-obligation valuation, or, if your property is already on the market, it's current pricing and advice on selling. I am available by appointment seven days a week between 8am and 8pm to assist with all your property requirements. I can be reached via Whatsapp on +27 (0) 81 063 1871, or email at: richard@kinesisproperty.co.za

Text Box: ''Wonderful experience working with Richard. He was a delight, professional, and committed to selling my flat. Very good communicator and supportive throughout the process. Highly recommend him.''  Brian

 

 

 

 

 

 

Author: Richard Boxford

Submitted 18 Jul 22 / Views 713