Simon’s Town Real Estate News

Properties in Simon’s Town are in demand even in bad times.

Does this mean Simon’s Town is immune to the current property deflation? It seems that way but hear what FNB property strategist John Loos had to say, “Torture the stats long enough and they will confess.”

He continues, “Property price inflation may ease off in the short term, but by next year prices will continue their upward trend, as SA suffers a rise in building costs and increasing urban land scarcity”.

“The proof of the pudding’ is in the eating.”

In June 2007 a property in Seaforth sold for R5.6 million at R18 667 per square meter. It took six months to sell. Recently we were involved in a Castle Rock property that sold for R4.85 million at a little less than R18 000 per square meter and it only took 33 days to sell.

These examples are not a flash in the pan. Consider the following graph and you’ll agree that the general rand per square meter for homes sold in Simon’s Town is upwards.Does this mean you must now sell your property and buy a better property? No. It still takes a long time to sell and the average discounts are high at 10%.

Here is an example: A seller in Simon’s Town noted that a seaside property across the road sold for R5 million. The home was demolished and a palace was erected. He decided that his property was similar with the only difference; a road that separated his property from the sea. He was unfortunately wrong in pricing his property and although he already discounted his price by 28% the property is still not sold.

There are obvious risks involved when you decide to sell today. The motto “Price to Sell“ is the only way to go.

That’s it for today.

May you have a lovely day.

Johan Horak.

P.S. Beware when you drive down Runciman Drive. A home in Harbour

Tags: simons town property trend