By Rob Downey
We are asked daily what is happening in the Tokai property market?
We are currently overwhelmed by information in the form of news, fake news, news from unaccredited sources and it is so difficult for anyone without having the facts to actually determine how the Tokai property market is actually doing this year compared to the same period last year amidst the Covid pandemic.
Looking at the period from January to the end of September and comparing this period with 2019 and 2020, the property information is as follows.
(Figures extracted from CMA Info)
Rob Downey, Master Agent with Chas Everitt, reflected on the 2019 market which showed strong signals of a depressed economy with no real positive economic growth for that year. For everyone, as we entered 2020 the market felt it was lifting, however at the end of March the South African Economy was hit with a hard lockdown placed a huge shift in the property market. Coupled to this, we had the Deeds Office closing at the end of March, not processing any property transfers at all and reopening again in June with periodic closures due to Covid related cases. Considering what we have been through, the market has performed considerable well.
So how have the market performed
My analysis of the general market has shown a big upswing in the lower end of the market with properties between R 700,000 to the R 2,000 000 price range showing high demand. This has been a result of the huge interest rate drop, making the lower end of the property market affordable for many buyers who were previously not able to get into the property market.
The middle market, generally speaking of property over R 2,000 000, has also seen the well priced properties selling and the overpriced properties having to drop to meet the market demands.
Property priced towards the R 3,000 000 and R 6,000 000 price range has shown a slower uptake in the market with properties showing good value selling very quickly. The market between R 10 million to R 15 million and higher, has probably been the hardest hit as many desperate sellers have had to reduce their price in order to sell. Some of these properties have had to drop their price between 20% to 30% below their listing price in January, just to secure a sale.
The Tokai market currently shows an average sale of R 3,500 000 in the current residential market with Sectional Title having an average price of R 1,335,111.
Interestingly, currently as per Property 24, the lowest price advertise for a property for sale in Tokai is a 1 bedroom apartment in Mont Bleu selling at R 1,195 000.
With the higher price advertised being a luxurious 4 bedroom home in Steenberg Green at a listing price of R 26,500 000
Agents all agents are reporting a shortage of listing on the market and currently as per Property 24, the Tokai market shows the following properties for sale in the respective price ranges,
Days on the Market
According to the stats on Property 24, the average time it takes for a property to list and sell in the market has shown a vast difference within the Security Estate market. This variance is not a true reflection as within the Tokai Security Estate market we have a huge variance with selling prices, with the lowest sale registered at R 1,620 000 to some of our most exclusive homes in Steenberg Golf Estate selling at R 15,950 000 with these listings being on the market for 108 to 339 days.
Chas Everitt in Tokai has been market leaders within the Southern Suburbs for the last 19 years and there to provide you with the best property advice.
Chas Everitt manages a large rental portfolio and active with buyer looking in all areas. We are also linked to all the bank distress programs and able to assist any buyer who may be struggling to meet their bond requirements, where we are able to help you through this process.
Should you be thinking of selling or renting or merely need some property advice, we are there to help you.
Cell: 084 576 7378
Cell: 060 529 2170