Hout Bay/Llandudno property market solid into 2023
We trust you enjoyed a good festive season and hope that 2023 will be a healthy and prosperous year for you and your family.
It is hugely encouraging to note that while many areas experienced a slow-down in sales last year due to the rising interest rates, the Cape property, and Hout Bay/Llandudno areas in particular ended the 2022-year on a strong footing with both the volume and value of transactions still ahead of the pre-pandemic level.
Hout Bay ended with 457 transactions worth over R1.3bn, another record year. The average transaction price also increased to R4,389,960 (from to R3,518,090 in 2021), largely due to more sales at the higher price bands.
Llandudno ended with a record of 18 transactions worth over R478 million compared to 8 sales worth R143 million in the 2021-years.
The data and performance demonstrates the strong confidence in the Cape Town property market, and Hout Bay/Llandudno in particular. As infrastructure challenges mount elsewhere due to poor service delivery and corruption, the demand Cape property has continued to soar, both for sales and rentals.
In fact, the data shows that wealthy buyers will for example invest on average more into property in the Cape compared to elsewhere, including the Sandton/Johannesburg upmarket areas.
The City of Cape Town has also just received a "clean" audit (much better than an unqualified audit). Amidst the Eskom crisis, another drawcard is that the City provides some relief to residents who experience one level lower compared to the rest of the country.
The fact that the City is so well managed will continue to underpin confidence in the property market. Demand is further boosted semigration and second homes. Buyers and tenants are now coming from all over, both locally and internationally.
We therefore enter the 2023-year on a solid footing for the market. That said, while Cape Town and Hout Bay property performance clearly reflects that buyers are "voting with their wallets", we need to be mindful of the factors which may impact the market.
These include the interest rate. The banks expect a further potential 50-75 basis points to be added in the first quarter as a buffer against inflation, which, while stable at around 7.2%, remains well above the Reserve Bank's target range of 3%-6%. Other factors include the Eskom/energy crisis, ongoing Russian War in Ukraine and business confidence.
There is still high demand and opportunities for sellers to capitalise, but be sure to work with agents with a strong track record of success.
Home is our Story and property our passion. Seeff has delivered excellent results for our clients across the sales and rentals sector of the market over the last year. If you are thinking of selling or renting out your property, you would not want to miss out on the current favourable climate. Contact us today!
Yours in Property,
Seeff Hout Bay/Llandudno
Call: 021 790 1032 | Email: houtbay@seeff.com