The month of May 2009 has proved to be a surprisingly positive one for Pam Golding Properties’ Western Cape Metro region, operating in the Cape Town metropolitan areas. The group reports that it achieved significantly improved sales on previous months, exceeding its target sales figure for the month by 25 percent. Show house attendance also increased steadily through the month as did buyer response in general.

Regional MD Laurie Wener says the significant increase in activity in May made up for a slow April when many buyers adopted a cautious approach ahead of the elections and were distracted by the many public holidays. "Whilst mortgage loan finance remains difficult to obtain," she says, "the second one percent decrease in interest rates in quick succession as well as the orderly election and smooth transition of government appears to have had a positive effect on sentiment. The softening of prices across the board, with the exception of those few truly iconic properties, has possibly also acted as a stimulus to buyers who are tending to buy more with their heads than their hearts at present. As a result of this positive shift in sentiment we are now on track as a region to meet our sales targets for the financial year, despite operating amid extremely challenging market conditions."

Several areas of Cape Town showed particularly strong results in May. These included the Atlantic Seaboard and City Bowl where area manager Basil Moraitis and his team concluded R100-million in sales turnover with R30-million in transactions in the Waterfront alone. In the Southern Suburbs, manager Howard Markham and his team reported good activity across the board which included three sales from Constantia, Bishopscourt and Newlands totalling R36.6-million and eight sales in Rondebosch totalling over R26-million.

Wener adds that several other areas performed beyond expectations: "Sandi Gildenhuys, our manager for the South Peninsula, and Michelle Lister of the Blouberg area, achieved 58 percent and 34 percent respectively above their targets. And in the Northern Suburbs our manager Herman van Rooy reported an easing of bond finance in May which led to an increase in the number of finalised sales in this area. Bev Bloch, manager of the Southern Suburbs Development division, reported her best month of the year so far for sales of completed units at The Quadrant in Claremont as well as The Majestic in Kalk Bay."

Wener concludes: "Although the mid-winter months are traditionally quieter for the property industry we remain positive heading into this season, particularly as there is a healthy pipeline of sales awaiting finalisation. It remains a challenging market for agents, with buyers still looking for good value but being more prepared to commit than in many months previously. This factor is superseding the emotional factors which have customarily characterised the purchase of residential property. The single greatest obstacle to sustained market improvement remains the banks’ ultra-conservative policies with regard to mortgage loan finance. An easing of their funding policies would almost certainly stimulate market activity, increase volumes and eventually stem the fall in property prices."

Does this indicate a turning point for property or is May just an anomaly? Leave a comment below...

RSS

Digg

de.li.cious

facebook

MORE PROPERTY

Absa provides 110% Absa announced on Monday that mortgages of 110 percent are now available...

Find your dream home In the market for a new home? Browse our massive database for the perfect property...

Property slump is over! House prices increased by 6.9 percent year-on-year in August...