Homes in Mowbray, Cape Town, spend an average of eight days on the market, with some even selling within a day of release. This is according to Tina Malyon, freehold area specialist for Lew Geffen Sotheby’s International Realty who said her office “simply cannot keep up with the demand at the moment as there is just not enough available stock”.
“Mowbray has become increasingly popular in recent years,” she said. “Since 2012 particularly, we’ve seen the average time houses spent on the market drop significantly to just 37 days, decreasing further to 19 days in 2014 and this year we often barely have time to market properties before they are sold.
“The average sale price has also spiked and further analysis of Propstats data reveals that the average house price of R1,55m in 2012 increased to just shy of R2m in 2014. By the end of August this year it had jumped to R2,9m.”
The sectional title market is holding its own, too, with Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, saying the market is driven mainly by the growing need for affordable accommodation near the University of Cape Town.
“In 2012, the average price of an apartment was a very accessible R700,000-plus yet they remained on the market for an average of 44 days,” he said. “Just two years later, flats in Mowbray were realising an average sale price of R1,07m and selling within 17 days. The dearth of available stock has been most notable this year with far fewer sales, of which the highest recorded sale price was R1,85m after just 13 days on the market.”
According to Claude McKirby, Southern Suburbs co-principal for Lew Geffen Sotheby’s International Realty, property owners in these suburbs are often reluctant to sell as they recognise the potential value of their investments and he said Mowbray is no exception.
“Lightstone data reveals that just over half of all property owners in this eclectic suburb have had their properties for 11 years or longer and, as the average house price in 2005 was around R920,000, many will have seen the value of their properties increase by more than 200%,” he said.
Photo: This renovated Victorian family home in Mowbray was recently sold for R3,15m within two days of being released onto the market. The average selling time of homes in this sought-after Cape Town suburb is now eight days.