Western Cape property 'increasing in price'

Average prices of property in the Western Cape region of South Africa have increased, despite a fall in turnover and completed transactions, new figures have revealed.

Statistics from Sotheby's International Realty South Africa showed a 19 per cent increase in the average price of a home in the region, up from ZAR1.67 million (GBP118,532) to ZAR1.99 million.

This is despite a 35 per cent drop in turnover for the Western Cape market during the first half of last year and a 45 per cent reduction in the number of properties sold.

Barak Geffen, executive director of the firm, noted that there are still many buyers operating in the market, despite the "negative sentiment" about the sector in the country's media.

"Astute buyers have been waiting for a market correction to pick up top-end properties from realistic sellers at market-related prices," he explained.

Last month, figures produced by the Investment Property Databank showed that the first six months of 2008 brought a 7.3 per cent increase in the amount of South African property across all sectors.

Like this? Then share with your friends and colleagues!