Simon’s Town Growth
March 16, 2007 – 10:28 am | by JohanNew Here? You’re Invited To Simon’s Town News Updates Subscribe here.
Simon’s Town Property News
Interesting property trends emerge with regards to high mortgage advances and the potential interest rates hikes, and the effect of increased inflation on properties in Simon’s Town.
According the figures released by ABSA mortgage advances increased by 30.1% year-on-year in January 2007. It seems as though the month-on-month trend is slowing down as a result of the higher interest rates. Unfortunately January inflation increased to 5.3% after being stable at 5% from October to December 2006. If the crude oil prices increase, food become more expensive due to the current drought and lending levels doesn’t slow down the Reserve Bank will increase interest rates again.
According to Property Price Ranger, Cape Town property prices rose in 2007 but the property took longer to sell. The average time to sell was 86 days in February compared to 71 days in January and 61 days a year ago. In upmarket areas the time to sell was 176 days.
What makes Simon’s Town’s property market different?
The difference is foreign buying power. But before we get too excited; the foreign buyers make up approximately 8% of the total buyers in Cape Town compared to 1% for the rest of South Africa. According to Media24.com the number of foreign buyers in the Western Cape increased by 30% on a month-to-month basis.
In addition to the good news above, Simon’s Town has limited land available for new developments and the prices will therefore increase. But that’s not all, “A shortage of development land, construction skills and materials (exacerbated by 2010 preparations) and the relentless growth of the black middle class will push house prices upwards for a solid five years,” says Ian Fife, the Financial Mail property economist.
If you price your Simon’s Town property to sell instead of adding fat for negotiations you will do well, the time to sell may be a little longer.
Wishing you well
Johan Horak
www.SimonsTownRealty.Info your property wise advisor
P.S. “I would rather turn you down today than let you down later”
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March 25, 2007 at 8:11 am
[...] to RPPR it’s taking longer to sell homes in the Cape Town area - including Simon’s Town, but the ...