The great appeal of the Upper Wynberg residential precinct, the area bounded by Constantia Main Road, Main Road, Tenant Road, and Waterloo Road, has grown exponentially over the last year – and more noticeably in the last three months. As a result, sales prices here year-on-year have risen by a staggering 25%.
This was said recently by Judy-Leigh Moffett, the Rawson Property Group’s sales agent for Upper Wynberg (which she has served for six and a half years), Plumstead’s Timour Hall Estate and another small section of Plumstead. All of these territories fall under the Rawson Property Group’s Constantia franchise, which is owned and run by Eugene Pienaar.
A year ago, said Moffett, the majority of her sales in Upper Wynberg were in the R950,000 to R1,8 million bracket, with a fair percentage close to R1,2 million. Recently homes in this price range have almost disappeared from the stock lists and when they do come about, they are sold for the full asking price within three or four days of being listed.
Today, said Moffett, she is selling in a price range of R1,6 million to R2.8 million, with the majority of the sales being above R1,5 million.
The phenomenal success of Upper Wynberg, she warned, should not tempt sellers to overprice because this tactic has proved, time and again, not to work.
“Today’s buyers are highly market conscious and will simply not pay above going rates,” she said.
“In the one or two cases where clients have persuaded us to go for a too high a price, we have always ended up having to reduce the cost later. There is also a danger that the banks’ assessors will not accept the new value when called to do so. The banks rely on reports that capture sales up to two months after the transaction has occurred leaving them with old data. In cases like these the area specialist can furnish the banks with recent sales to assist in finding the value.”
A case illustrating this, she said, was a newly renovated home listed at R1,695,000, a price which was deemed correct as it was based on the home’s appeal and the demand to the market. In the initial two weeks, the buying public showed interest but no offers were made. When the price was reduced to R1,595,000 it was sold in one day at full asking price. The maximum value for a 100% bond was R1,500,000 – so, to help the buyer qualify for this bond, the seller knocked off a further R95,000.
Much the same bullish conditions, said Moffett, are currently found in Plumstead’s Timour Hall Estate, where the last year’s standard lower price of R1,6 million has risen significantly so that today the majority of houses sold here are priced from R2,2 million to R2,8 million.
The great appeal of the Upper Wynberg residential precinct has grown exponentially over the last year..http://t.co/rmDfVbotFM #capetown
— RawsonPropertyGroup (@RawsonGroup) November 18, 2013
Asked to predict how much longer the Upper Wynberg prices can be expected to rise at the current rate, Moffett said that the chronic lack of stock coupled with Upper Wynberg’s attraction as a school catchment area, excellent central position and attractive environment are likely to ensure that prices continue to rise year-on-year.
