Simon’s Town Real Estate News

Simon’s Town Property Sales Alive and Well

On the first of June 2007 the National Credit Act (NCA) came into effect as a tool to fight fraud. Most people in the real estate industry thought the NCA and the 450 basis point increase in prime rate will dampen the residential market.

The property transfer figures indicate another story for Simon’s Town. From November 2006 an average of R27.58 million worth of properties were processed in the deeds office. And from the annual trend there’s no reason to believe any of these factors influenced Simon’s Town property sales.

During August 2007 a month high was recorded at R44 million. Then the trend dipped down for two consecutive months to a low of R18.5 million during October 2007.

November’s figures were released and all the prophets of doom were proven wrong when R40 million properties changed hands in the deeds office. Let’s follow the trend.

It’s interesting to note that during the last 12 months R359 million worth of Simon’s Town properties were processed in the deeds office with the most expensive property selling at R6.38 million. According to ABSA they also noticed no decline in general but rather a lag time and then a recovery.

Although all of this is relatively good news for Simon’s Town property owners the time to sell a property is still a 120 days compared to 80 days for the greater False Bay Area. Taking all the facts into consideration; if a home is not sold within 120 days the property is over priced. As guideline Simon’s Town homeowners can use R11 000 per square meter of floor space to calculate the approximate selling value of their property. If the property is on the coastline this figure can increase to R18 000 per square meter.

Regards

Johan Horak

Tags: simons town property trend