PROPERTY: Atlantic Seaboard Luxury Sectional Title Buyers Dig in their Heels, Want More Market-related Pricing
Recent Western Cape Business News
Buyers looking for luxury sectional title properties across the exclusive suburbs of the Atlantic Seaboard are now digging in their heels when properties appear to be overpriced, according to Adrian Mauerberger and Cecily Sher, sectional title specialists for Seeff.
While buyers are still on the hunt for luxury residential apartments in the R4m-plus price sector, they are now becoming more conservative with their offered prices, say the agents.
We have also seen more stock coming onto the market, in fact at an escalating rate over the last few months. That, adds Mauerberger, means that buyers now have more of a choice and we are now entering a buyers’ market, certainly insofar as the R4m-plus luxury sectional title sector is concerned.
Last year, we were still sitting with a market that was short of stock and buyers that were prepared to pay much closer to the asking prices as they did not want to risk losing the property.
We are now finding that buyers are taking a more conservative stance when it comes to their offers and are at best prepared to pay between 8%-10% below the asking price. Interestingly, say the agents, this was considered a good closing percentage a year ago.
The freneticism that characterised the market here over the last few year is now gradually subsiding according to the agents who say, that there has been a shift from a sellers’ market to more favourable conditions for buyers.
While below the asking prices, the offers are coming in at market related pricing, very similar to the price levels that we are recommending to our sellers. What we are however, finding, is that sellers are under the belief that they can still achieve higher prices.
We would certainly now advise serious sellers to become more negotiable as we are finding that buyers are simply walking away, rather than overpaying, continue the agents.
There now needs to be more balance otherwise sellers are going to sit for longer periods with what they deem ‘unacceptable’ offers while the willing buyers will simply go where sellers are more negotiable.
It is vital for sellers to know that the market has shown time and again, that the first offer is likely to be the best price that the seller will get, especially during a weak economic phase such as the current period. It may even be the only offer that the seller gets right now, never mind a higher offer that they might hold out for, conclude the agents.
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