Business confidence has deteriorated. After a strong first quarter reading as Cyril Ramaphosa was inaugurated as president, the RMB/BER Business Confidence Index has fallen from 45 to 39 points in the second quarter, which RMB describes as a “disappointing outcome – but probably an accurate reflection of reality.”
According to Luxury Portfolio agent Sally Gracie who specialises in the Constantia area of Cape Town, this deterioration is easy to identify at the top end of the property market.
“I have spoken with many colleagues in the luxury market with whom I have a close working relationship in other areas of Cape Town and all share my perception that the top end of the market is taking a substantial knock. This is certainly expected to continue and motivated sellers are reducing prices and expectations”, said Sally.
Agents agree that we have entered a far more buyer friendly environment with an increase in new listings and a drop in enquiries. According to Sally Gracie, there is still better value on offer in Constantia compared to the Atlantic Seaboard. “Recent reports from New World Wealth (see link below) showed that Camps Bay was getting an average of R56 000 m2, compared to Constantia R32 000 m2. Even allowing for the larger erf sizes and more apartments that skew these figures these two suburbs have traditionally been popular ‘yardsticks’ to measure both sides of the mountain in Cape Town,'” said Sally.