WORLD FINANCIAL WOES HAVE ALTERED APKF’S BUYER PROFILE

Anne Porter Knight Frank, which has its headquarters in Claremont, and is firmly ensconced in many of the upmarket suburbs like Constantia, Kenilworth and Bishopscourt, report that already they are seeing a marked change in their buyer’s profile as a result of the financial problems that have hit world markets.

 “In recent years,” she said, “we have regularly sold to young, upwardly mobile executives from the financial sector – investment bankers, hedge fund and unit trust CEOs, financial counsellors and the like.

 “These people had sometimes made fortunes in three or five years – and their huge buying power had a noticeable effect in their pushing prices up at an exorbitant rate.

 “We sometimes saw them buy prime area high priced properties and then spend equal or greater sums on demolishing and rebuilding the home.

 “Now they are suddenly no longer around – and the residential market has returned with a resounding thump, to “normality”.”

 What this means, said Steward, is that for a short while (perhaps six to twelve months) prices are at levels that will probably never be seen again – and buyers should be getting in there and capitalising on this.

 For overseas buyers, she said, there is a temporary window of opportunity while the rand remains weak and those buying now could in the next month or two find that they are able to get in on good property at a 15% discount.  However, she added, sellers must remember that they are competing in the global market and although SA might have bargains, many other countries are now offering good value buys at low-low prices.

 Sellers, said Steward, still have to heed the constant warnings from all property sector spokespeople that they must come to turns with the market realities and not fall into the trap of putting their homes on the market at dream prices – only to find them rejected by buyer after buyer.  

 “Rather than follow this course, if they are not serious sellers and put their houses on at a market related price, they should hold back and sell next year or later,” she said.  “Any home which sticks on the market picks up a stigma which ultimately results in it going for below its true value.”

For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.