SA house sales down 38%
Aug 28 2008 18:43
Fin24.com reporter
Cape Town - Residential property sales across all price brackets in the market have fallen 38% between January and July 2008 compared with the same time in 2007, according estate agency Remax and bond originator BetterBond on Thursday afternoon.
At the cheaper end of the property market, sales of properties valued under R499 000 fell 36%.
The downward trend was evident in all other pricing categories: for homes priced between R500 000 and R749 000, sales were 42% down.
Sales fell 39% for properties in the R750 000 to R999 999 price bracket, and 33% lower for properties between R1m and to R1 499 999.
The biggest drop in sales was in the R1.5m to R2.5m price category, with sales down 48%.
Sales of properties with a value exceeding R2.5m were down 44%.
Jeanne van Jaarsveldt, the marketing and finance director of RE/MAX Southern Africa, says that with signals of a slight market recovery on the way, the effect of increased interest rates, accelerating consumer inflation and stricter lending criteria means affordability is the only buying motive for consumers.
The data shows that there is a major shift towards properties in the lower price brackets, while premium properties in excess of R2.5m in the Western Cape remains in highest demand across South Africa.
During the course of August, RE/MAX says it has noticed "a definite revival in the property market, with many RE/MAX offices recording their highest number of property sales for any given month in 2008".
"We are set for a reasonably good period in the property market for the next six months, which will in all likelihood prove to be first step towards definite signs of a market recovery," says van Jaarsveld.
"One thing is clear: the way lending institutions look at consumer risk and debt exposure has forever changed the face of the real estate market. Both consumers and estate agents will need to learn to adapt to this rapidly changing environment."
Gauteng has been the most active area in all price brackets except at the very top end of properties priced above R2.5m; here, the Western Cape had the largest amount of sales transactions, with 36%.
- Fin24.com
