On-going media reports about the upturn in the Helderberg Basin residential property market are by and large accurate and verifiable – and they tie in closely with the figures from the three Rawson Property Group franchises now operating in the area (at Somerset West ,Strand and Gordons Bay).
Schalk van der Merwe, a Rawson Property Group co-franchisee for these franchises.
“Eighteen months ago,” said van der Merwe, “we were employing ten agents in the Helderberg Basin. We now have 22 and on average together they are selling 35 homes per month. May was the best month ever at these franchises: 47 sales were made and all nine agents achieved three sales or more — a record for this area.”
This figure, he added, could be significantly higher were it not for the fact that stock shortages are now felt throughout the Helderberg Basin and these have now become the chief challenge facing estate agents here.
“A year ago there were just over 1,320 properties for sale in this area. Today there are 880. We are moving steadily towards a strong seller’s market, with the inevitable result that prices by our estimate are now rising year-on-year by 5% to 7% — and seem set to continue to do so.”
Twelve months ago, added van der Merwe, sellers generally had to accept offers at 5% to 10% below the list price. Now the offers are usually from 3% to 5% below the list price and a fairly large number of sellers are getting their full asking price. The average selling time of property here was previously 104 days – but this has now been reduced to 45 days.
“On many sales,” added van der Merwe, “we are now getting three or four offers. These put the agent in a position to negotiate a higher price, provided they act ethically.”
With the exception of a few pockets in Strand and Gordons Bay, most of the homes in the Helderberg Basin, said van der Merwe, are now in the middle and upper middle price brackets, the majority of sales being in the R900,000 to R3 million price range, with security estates still in high demand among purchasers.
In the current conditions, said van der Merwe, estate agents have to be that much more professional to cope with what is now a very competitive market, but his teams, he believes, have been greatly assisted by the implementation of a support system evolved by himself and his directors, which enables the agent to spend more time on client liaison and less on administrative work, which is done for them by dedicated office staff, with one PA serving two or three agents.
In May this year, said van der Merwe, his franchise’s turnover was 124% up on that of the same period last year and, despite the stock shortages, he said, he now believes that this rate of growth will be maintained in the year ahead.
