Language of Real Estate Q3 of 21

Language of Real Estate Q3 of 21

The Total Market Overview in the areas we conduct business has 25 091 title deeds of which about 5% change ownership - the transaction count tends to remain the same, however the average transaction value rises and falls with the shifts in the market

In Quarter 3 of 2021, 306 transfers recorded in the Cape Town Deeds Office or 1,22% of the title deeds (freehold and sectional title).  The review does exclude the sale of a Shares in Companies and the few remaining Closed Corporations which have always fallen outside the data set)

There are 1 066 properties promoted via the portals or 6% of total stock available for sale.

Q3 of 2020 average sales values were as follows:

Freehold:            R10,683m (2,77% average market price increase)

Sectional Title:   R3,703m (48% decline in average market prices)

The sectional title market price reduction is based on 3 major projects transferring ownership at lower price points i.e. supply is matching a new level of price demand

In addition, there are 31 Commercial Real Estate Businesses (non-auction) who service this market

Significant Sales that transferred in Q3 are:

CBD                                R261m                  1 Hans Strydom Avenue - Hospitality site

Claremont                       R244m                  123 Main Road - Retail site

Montagu Gardens           R92m                    1 Bolt Ave - Retail site

Newlands                        R74,2m                 8 Main Road - Hospitality site

Office disposals and rentals: There are few significant office disposals taking place and pockets of demand such as Westlake and Durbanville where enquiries still lead to leases being concluded