Sadly, for sellers its best for buyers
PUBLISHED 5 JUL 2020
2020 has been an extremely challenging year for the whole world - and the residential property market in Cape Town is no exception.
As South Africa scrambled to implement the lockdown, property registrations at the Deeds Office ground to a halt. As the dust settles, we are seeing a recovery in property registrations and new bond approvals - but prices remain soft and it’s definitely a buyer’s market.
If you’ve been considering a residential property purchase in the Mother City, now could be the perfect time. Here’s how to navigate the best buyer’s market in three decades.
Falling prices, low interest rates, and plenty of stock available
The coronavirus outbreak put a stop to the moderate recovery that Cape Town’s home market had been experiencing in late 2019 - and that’s good news for anyone interested in purchasing a property.
- The Reserve Bank’s recent rate cuts have dropped the cost of servicing a bond considerably. The salary required to finance a R1 million home has dropped from R28 951 to R23 711 in less than a year.
- While it’s easier to finance a home if you have a regular income, it’s also becoming easier to find excellent bargains. The sub-R2 million housing category is full of exceptional value right now and the super-luxury housing market is also set for a serious reduction in price.
Urgent sellers are likely to be more flexible
One of the unfortunate consequences of COVID-19 is its negative effect on the economy.
As some families find themselves forced to downsize or relocate, they may be keen to sell their properties in the shortest possible space of time. This presents an opportunity for buyers who either have cash available or have been pre-approved for a bond.
- Sadly for the sellers, buyers will find that some sellers are more flexible in terms of the offers they’ll consider than was the case in recent years.
- If you’re a seller you may need to adjust your expectations in the current market - or hold out for at least a year or two if you’re not willing to lower your asking price.
Whether you’re in the market to buy or sell a Cape Town home, the Cape Realty team is on hand to guide you and assist in any way we can. Contact us today.
Image Credit: https://pixabay.com/photos/key-home-house-estate-business-2323278/