In the last three months one agent, Dave Zieve, working at the Rawson Property Group’s Milnerton franchise, sited less than 13 km from the centre of Cape Town, has sold nine homes with a total value of R19,7 million.
“That in itself is remarkable,” commented Milnerton franchisee, Marc Vladislavich, “but what is even more noteworthy is that, firstly, one of the properties sold had a value of over R3 million, secondly, without exception, all had stuck on the market for some three years and, thirdly, despite this fact, the homes all reached price levels within 10% of their asking price.”
Asked to explain his success, Zieve said that, quite apart from the skills and energy he brought to the sales effort, the truth is that demand in Milnerton now exceeds supply and this is creating a seller’s market.
“The price drops of the past are now definitely over,” said Zieve. “From here on prices can only rise because there is very limited new stock and South Africa’s economy is on a recovery path.”
In the year ahead, added Zieve, the main challenge estate agents will face will be not to sell stock but to find new stock. Canny buyers studying the market should appreciate that now is the time to buy because price growth in late 2013/2014 is likely to increase greatly.
One of the big advantages of selling in Milnerton, added Zieve, is that, having previously sold developments along the Atlantic Seaboard prior to 2009, he can clearly see how Milnerton offers “quite incredible value for money”.
“The precinct’s whole atmosphere and ambience,” said Zieve, “has improved drastically in the last year or so and it is now very much the place to be.”
All of the suburb’s property values, he predicted, will be boosted further by the sophisticated new Spoornet Pension Fund retail complex, Centre Point, which is being developed by PIC Developments and is now roughly halfway through construction. This new centre, said Zieve, will set the standard for all of the city’s retail outlets.