Message from Dogon Group MD, Alexa Horne - DG Ekasie Digimag - March 2022 Issue
Category Property News
It's been a particularly busy, positive start to the year for us in the Cape Town real estate market. Buyer sentiment has been buoyed by the realisation that Covid-19 has, essentially, proven less of a threat to the property market than expected. This has been evidenced by strong sales post lockdowns and increased purchasing activity by both local and international buyers.
At Dogon Group we're witnessing a strong revival in the upper and luxury market sector in particular. This trend is balanced by strong buyer interest and momentum across a range of new developments delivering more compact yet versatile 'live, play, work' opportunities close to the City Centre and Atlantic Seaboard - an interesting and encouraging market dynamic.
Semigration remains one of the key drivers keeping real estate market alive and thriving. Covid-19 has undoubtedly resulted in changes in buyer outlooks and lifestyle choices, and in many instances, it has fast tracked their objectives to own a top-end property in the Mother City. Most buyers are buying into the Cape Town lifestyle and the close proximity to a host of scenic amenities such as golf courses, wine farms, mountain bike and hiking trails, beaches and sailing.
The bulk of sales in recent months have therefore been driven by freehold homes located in some of Cape Town's most prestigious suburbs, including Bishopscourt, Constantia and Higgovale as families, in particular, become increasingly drawn to more spacious homes and the more balanced and relaxed lifestyles on offer. This increased demand has resulted in stock shortages in many areas.
The Southern Suburbs school-belt areas, in particular, continue to experience excellent sales. The area remains consistently popular with local buyers, as well as those looking to relocate from other provinces, and seeking properties where they can work from home and still enjoy incredible lifestyle benefits and access to the top schools and facilities in the immediate vicinity. Our brand new offices, based in the bustling Claremont business district, position us well for consistently strong growth in this area.
Unsurprisingly, properties on the Atlantic Seaboard continue to remain prime purchases for wealthy local and International buyers. Buyers from other African countries have also emerged as a strong new market boosting sales in Bantry Bay, Camps Bay, Clifton and surrounds. New high-end developments are thus launching to pick up the demand. In fact, we currently have over 35 active residential developments on offer.
The developments include our larger apartment developments such as Station House, The Rubik and The Fynbos, to the medium-sized 169 on Main, The Estate, The Ivory, The Marlo and Alpha One, to the boutique style at Clarens, The Albany and The Clifford. We also offer several townhouse developments on the Atlantic Seaboard, such as Lixia Ravine, 17 The Drive, 19 Theresa Ave across to the Southern Suburbs Oakwood, Kildare Lane and Steenberg Green - and with several brand new exciting projects about to launch shortly.....watch this space!
Sales have also been brisk in the sub R3-million market, with many first-time buyers, previously apartment tenants, now transitioning to purchasing property. It's clear that people are starting feeling more secure in their jobs and that the prevailing low interest rate is allowing buyers to taking advantage of being able to finance their property purchases at more affordable levels.
We've experienced some of our busiest months ever in certain areas. I feel it necessary to mention some of the incredible achievements by our growing team of agents. Notably, Dogon Group agent Keith Anderson has achieved an incredible R93-million in sales turnover this year alone. Many of these sales represent top-end properties in the sought-after suburb of Higgovale. Additionally, our Development team has had a very strong performance with sales of over R150-million, representing the sale of 38 units, over the same period.
The positive news is that the recent Budget Speech did indeed deliver a balanced outlook. It placed a clear emphasis on economic revival, which is needed to settle some concerns from investors over our country's ability to take our economic outlook seriously. This is vital to real estate investment and our ability for Cape Town to continue to exhibit the astonishing growth that has characterised the market for well over a decade.
Though it appears we can expect to see at least a few more interest rate hikes for this year, we expect this to be done responsibly and slowly, so that it would not put any additional stress on the economy. The Cape Town property market, in particular, should therefore be able to 'absorb the hits' and continue on a positive trajectory. On the upside too, we're seeing a trend towards more transparent discussion and collaboration between lenders and applicants willing to do what it takes to improve their risk profile and application strength.
It appears that, if the pandemic has taught us anything, it's that we are adaptable and resilient, and if we can continue to adapt and make the necessary changes as needed, we will continue to succeed. As more development stock enters the market, the shortages will also diminish in certain areas.
Based on our recent performance and in combination with a highly motivated sales team and buoyant property market, I have an extremely positive outlook for 2022.
Author: PR - DG Ekasie Digimag
