By Graham Norris Property Editor -
The "average" Capetonian is now living in a home worth R1 million, according to figures in the latest edition of the Regional Property Price Ranger.
Bill Rawson, chairman of Rawson Properties, says the value of residential units sold in Greater Cape Town rose by 31.4% in June this year compared with June 2003, with the average unit sale price rising by 27.67% from R815 674 to R1 127 641. "This means that the average Capetonian is now living in a home worth R1 million, something that nobody would have predicted three years ago," said Rawson.
He conceded that this figure was heavily influenced by activity in the upper end of the market. "One R26 million sale in Bishops-court does distort the picture," said Rawson, "but I still see no sign of a slowdown in the Cape residential property boom." From a capital gains perspective, said Rawson, the residential sector was by far the best performer in the Cape property market, outdoing commercial and retail property as well as agricultural land. Asked what type of residential property had performed best, Rawson said that the sectional title units had recorded gains over 10% higher than those experienced in conventional homes. This, he said, was all the more remarkable because certain commentators had suggested that this sector might be becoming oversupplied - but as yet there are no signs that the large number of units brought on to the market here are affecting the prices.
The exception, he predicted, might prove to be the CBD sectional title units now being marketed at an unprecedented rate. But here again, he said, the adjustments are unlikely to be seen within the next year and currently the sales teams involved with CBD apartments are finding the market very buoyant. Cape residential property, said Rawson, is likely to see further price rises. He pointed to the May/June figures which, he said, indicate that homes have risen by 1.9% in one month while sectional title units have risen by a staggering 11.75% in the same period.
Similarly, he said, the increase in the January to June sales figures this year compared to those of last year had been phenomenal - in the region of 36% - from R5.786 million to R7.892 million. "As was inevitable, we have been getting comments that some of the areas like Table View and Parklands might see value increases beginning to level off," said Rawson. "Although that does seem possible, all our figures have shown that this is not the case as yet, with the result that we are going ahead with two big projects, L'Afrique and Kingfisher Glen."
This article was originally published on page 7 of The Cape Argus on July 10, 2004
Publisher: The Argus
Source: The Argus
The average Capetonian lives in a R 1m house
Posted On Monday, 26 July 2004 02:00 Published by eProperty News
The "average" Capetonian is now living in a home worth R1 million
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