Live Property Pricing and Market in South Africa Today
An important note to Property Sellers from TOMPROP.COM Data Science
Perceptions are Interesting, facts produce stats!
We are currently in a trend which is heavily weighted to a BUYERS Market.
If you are serious about selling then you need to take heed of the following:
The current market in a nutshell:
More than 60% of suburbs in South Africa have a reducing asking price per square meter over the past 6 months
What is apparent in our Live Pricing stats is that affluent suburbs have largely taken a beating whilst less affluent suburbs have largely increased in value.
Even some of the most iconic suburbs in South Africa such as De Waterkant (apartments), Claremont (freestanding houses), Thesen Island (apartments) have shown negative asking prices over the past 6 months, -1,90%, -5,22% and -3,27% respectively. View all stats on our web portal, the PDf document is downloadable and printable. https://tomprop.com/statistics and always apply our downloadable CALCULATOR with easy to use Factors which will help refine your Live Pricing (just above the stats document in our stats page)
There are also instances of growth and these may be accounted for quite easily:
Either re-development, new development or coming off a low base is quite evident as the reasoning behind certain suburbs showing stellar growth. Examples of that are Woodstock CT 6,70%, Gordons Bay WC (apartments) 9,06%, CT City Centre 8,02%
The Economy and effect: Where to from here?
The market will not change until the overall economy has improved substantially!
Interest rate reductions DO NOT have a direct link to improved property prices as much as some pundits may suggest. There is no DIRECT correlation between low-interest rates and rising property prices. The INDIRECT correlation is that there is more money in the pockets and as a result, buyers are able to hunt for property from a wider source. You will not necessarily attract a higher price until the balance between available stock and willing buyers narrows. Currently, we have more sellers than capable buyers!
There are two reasons for reducing interest rates:
South Africa falls into the latter position.
Serious sellers will have to re-adjust their thinking.
If your estate agent or bankers are still using Old Sales Stats as a yardstick for Current Property Valuations, then you need to speak with them and show them this.
OLD SALES STATS will reflect trends 12 to 24 months after our Live Data
The industry largely uses Old Past Sales Stats as a yardstick producing Current Market Values for Residential Property. We refute this data as pretty tardy, unreliable and even dangerous. Old Past Sales stats are littered with sales between family and friends, quick-sells, sales under duress, deceased and liquidated estates etc. Also, are you able to accurately gauge the mood and market of the past, what the supply and demand of stock were at the time these sales took place? - We say, no you cannot.
The only true market value of your property is how you compete with all other properties on the market in your suburb TODAY. We, therefore, measure the current Live asking price, per square meter, per suburb, per category. If you do not compete in this space then you have not produced a Current Market Evaluation.
The Three Most Powerful currencies than never devalue!
Data, Knowledge and Intuition