Property Perspective - Taking stock of the property market

If you have ever wondered if time accelerates this is made emphatically clear as we head into December and our peak holiday season. There is a buzz in the air as most people take a break and go into holiday mode. It gives us a chance as realtors to analyse our markets and contemplate the sales data as the year closes off. The deeds office data typically has a bit of a lag and we therefore regard the current information as indicative only, but it is sufficient to highlight trends and sales activity over the past year.

Using our subscription to the P24 Market Intelligence Reports I have analysed the main North Coast estates and suburbs, and the numbers reveal some interesting insights. I am often asked why there is so much stock available in Zimbali. The distinct listing report for Zimbali shows 432 listings.

This is from a market stock of 1,527 properties divided between 743 freehold homes and 784 sectional titles. That is 28% of the stock on the market. This does seem like a deviation from the norm and higher than usual.

Sales figures to date in Zimbali show 33 sectional title sales at a median price of R5,5m,19 freehold sales at R10,5m median price and 3 vacant land sales atR2,690,000 median value. Freehold pricing shows an increase, sectional title pricing a decrease and vacant land a decrease.

Comparing this to Simbithi Eco-Estate there are 269 listings across a market stock of1,680 properties, which are split between 965 freehold and 715 sectional title.This is 16% of the stock available for sale, which seems like the new norm in the current buyer's market cycle. Simbithi sales to date for 2023 show 77sectional title sales at a median price of R4,2m, 51 freehold sales at R7,9m median and 4 vacant land at R1,650,000 median price. Pricing for freehold is up in Simbithi, as is sectional title. Vacant land pricing is down on the median.

Brettenwood Coastal Estate has a market stock of 488 properties (324 freeholds, 164sectional titles) with 76 listings or 15,6%. Brettenwood sales to date show 29sectional titles at R3,395,000 median pricing, 13 freehold at R6,6m and 2vacant land sales at R1,975,000. For Brettenwood it appears median pricing is up for freehold, down on sectional title and flat to marginally up on vacant land.

Looking at the suburb of Sheffield Beach which incorporates Zululami, Seaton and Elaleni Estates, as an emerging powerhouse of residential sales we see a total market stock of 1,626 properties divided between 1,211 freehold and 415sectional title homes. With 357 listings this represents 22% of market stock.

These figures can be skewed a bit with new land sales or new off-plan sectional title properties listed which have not yet transferred and therefore cannot as yet be counted in the market stock. This does explain the higher percentage. In comparison, Salt Rock as a large established suburb shows 130 listings across a market stock of 753 properties or 17,2%.

The data reveals that freehold properties are attracting the most demand, vacant land the least and sectional titles largely steady.

As we head into the selling season we know the North Coast has no shortage of stock and that it is one of the best buyers markets we have had within 12years.