Areas and Places

Upper Bracket Homes Now Seeing Price Appreciation And Higher Demand, Says Rawson

The client profile of the Rawson Property Group is changing radically and swiftly, says the group’s Managing Director, Tony Clarke. 

“The big difference between the sales in our group of 2010 to 2012 can be seen in the huge increase of revenue that we are getting from upper bracket homes.  In 2013 the Rawson Property Group saw a year-on-year 37,72% increase in the total revenue of homes sold above R2 million.”

The change, says Clarke, was particularly evident in such areas as Constantia and Franschhoek at the Cape, Bryanston and Morningside in Johannesburg, Waterkloof in Pretoria and Kloof and Umhlanga in KZN – all of which have experienced big upturns in the sale of the more affluent properties.  The increase is, however, evident across the board wherever homes are priced above R2 million.

“As early as 2011 we began to plan to broaden our footprint in the upper bracket market,” says Clarke, “and the good news is not only that this plan is succeeding but also that we have in no way reduced our stronghold on the lower middle and lower brackets, which continue to grow and to produce satisfactory revenue.”

The expansion in the upper brackets, says Clarke, comes at the right time because the top bracket homes are once again starting to ‘move’.

“A recent Absa report says that in the fourth quarter of 2013, by that bank’s estimation, luxury housing (priced from R3,8 million to R17,8 million) saw an average year-on-year price increase of 6,6%, which followed on from a 6,7% in the third quarter.  This is a massive improvement on the 2009, 2010 and 2011 figures and represents a step-up of some 25% in all.”

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