In what he describes as still a “well-balanced market”, Seeff chairman Samuel Seeff reports stock levels are tight. This echoes what other leading estate agents are telling HomeTimes.
“There are plenty of eager buyers,” Seeff says, “which means it’s a good time to be a seller, provided that you remain realistic with your asking price.”
With stock levels tight, he notes there is no oversupply in sight yet: “This certainly is the case as far as the primary housing market is concerned. Even in the secondary market, in many high-demand coastal markets, most of the oversupply has been taken up.
“As in the secondary market, much of the volume in the distressed market has also been mopped up.
“Sellers have been holding back, watching and waiting and hoping that prices would spike so it has only really been those who really need to or want to sell now that have been listing. Additionally, sellers are also not seeing too much incentive to buy up, with the already high transactions costs, of course now even higher with the latest transfer duty hike, being just one part of it. This is also why we see so much upgrading in top end areas such as the Atlantic Seaboard. There are cranes in Clifton as owners are buying for position – paying up to R40m just to get the right spot- demolishing the old houses and building fabulous new villas that are now going to market at between R150-200m.
“Seeff, incidentally, has about four of these properties on our books, but they tend to be marketed on an ‘off-book’ private basis,” he adds.
“Stock shortages are most prevalent in high-demand, urban areas, especially in the below R3m market, where the bulk of the activity takes place.
“But stock shortages are also being felt in the top-end, blue chip areas priced up to about R20m. There certainly is still strong demand for the R20m plus sector and still not enough to show those top end property investors.”