Newlands, Upper Claremont, Rondebosch and Upper Kenilworth buyers find it hard to accept todays prices, says Rawson Properties franchisee
Tony van der Lith, the new Rawson Properties franchisee for the Newlands, Upper Claremont, Rondebosch and Upper Kenilworth areas, says that the latest sales by his seven man sales team have all been in the R2 million to R5 million bracket (with one small but attractive apartment selling at R1,1 million).
Nevertheless, said van der Lith, the big demand is for homes priced under R2 million.
'We have regular enquiries every day for homes in the R1,5 million to R2 million bracket,' he said, 'and the sad truth is that in these areas (apart from the 700 new sectional title units brought to the market by Rawson Developers in the Rondebosch area) there is very little stock available in the sub-R2 million price bracket'
In the higher price categories, a '˜fairly large number of the sellers still cannot adjust or have not adjusted to the new market conditions and insist on holding out for prices that were last obtained possibly two years ago. Generally, these are 20% or more above todays realistic market levels.
'We do get offers for these properties, but they can be as much as 30% to 40% below the list price,' he said.
Those who do price realistically usually have no difficulty in finding a buyer in three to nine weeks. One home, not handled by Rawson Properties, in fact sold in one day.
Buyers who cannot find homes in the area at prices they can afford, said van der Lith, have two options.
'They can either lower their sights slightly and buy on the periphery of these highly sought after precincts - or they can rent'
If they go for the first option, he said, Rawson Properties can - and frequently does - pass them on to their experienced Lower Claremont/Lower Rondebosch franchise, where they can still find good properties at more affordable prices in Lynfrae, Rosebank and Lower Claremont as well as the trendy and popular Harfield Village, which is now much favoured by upwardly mobile young couples.
These areas all have the big advantage of being within easy cycling distance of the good schools which are a major attraction for many of the buyers coming to the central Cape Peninsula suburbs.
If they decide to rent rather than buy in his area, said van der Lith, his two man rental team (and those in other good agencies) can offer them freestanding houses at just under R10,000 per month - about half of what they would pay on the bonds for such properties.
'Eight thousand five hundred rand to R9,000 is a fairly standard average rental in this area, but of course many of the more exclusive homes go for anything from between R12,000 and R18,000 per month'
Van der Lith added that his firm does have tenants who are renting and at the same time saving with a view to buying five or ten years from now.
'In the current market,' he said, 'that can make a lot of sense'
Van der Liths analysis of current conditions was confirmed by the latest figures published by the Institute of Estate Agents Propstats division.
These show that over the last 12 months, in Upper Claremont the average house price was R3,85 million and the average sale time 99 days. (One home, clearly overpriced initially, was on the market for 548 days before it sold.)
Asked if his comments should be taken to mean that the more expensive homes can no longer find buyers, van der Lith said that his agency can still find a few buyers very keen to invest in the area - but in most cases they are also determined to do so at a bargain price.
'As we have very few distressed sellers in our precinct,' he said, 'buyers will have to deal with sellers who, as indicated, are often in no hurry to sell and able to stick to quite high prices - but we can quite often find common ground and do a deal'
The new Rawson Properties franchise operates from a double storey building with ample parking on Protea Road. This is owned by a trust belonging to the van der Lith family. The premises are shared with van der Liths legal firm, van de Lith Attorneys, which he founded and still controls. The other tenant is a physical fitness gymnasium.
For further information contact Tony Van Der Lith on 021 674 4400 or 082 443 1553 or email tony.vdlith@rawson.co.za.
