In today’s property market a stock surplus rather than a stock shortage is usually evident, but, says Lanice Steward, MD of Anne Porter Knight Frank, the Cape Peninsula estate agency, at the lower end of the middle price bracket stock shortages are beginning to crop up.
One such area, she says, is Harfield Village, where most of the homes for sale are priced between R800,000 and R2 million.
“Harfield Village has traditionally had a high sales turnover because many of the buyers were young couples using the suburb as a step-up to more affluent properties - and they often upgraded their homes while they were living in them, in many cases increasing the value by over 20%.
“Now, however, with people upscaling far less frequently, estate agencies, such as ours, are finding that there simply is not enough stock to meet the demand.”
The same pattern, says Steward, is now also becoming evident at Rosebank and in Lower Claremont.
In such areas, she says, a lack of houses will inevitably ensure that prices rise ahead of the average, as will rents.
“Investors, of course, have already become aware of this and are targeting these areas when they buy,” she says.
Where the usual upgrading process is slowed down (as is happening now), says Steward, properties at the higher end of the market suffer most because although the number of sellers remains approximately the same the number of buyers is drastically reduced.
“As a result properties in affluent precincts such as Constantia and Bishopscourt, where sellers often do not have an urgent need to sell, are experiencing less volume turnover.”
For further information contact Lanice Steward on 021 671 9120 or email firstname.lastname@example.org.