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Property markets are traditionally driven by inequalities – the market is either skewed in favour of the Seller [ a seller’s market] or in favour of the buyer [ a buyer’s market]

A seller’s market is one that is always distinguished by limited number properties on the market, a very keen and competitive buyer element and due to the competition for limited stock, an ability for the seller to achieve great sale prices. In contrast, in a buyer’s market, there are many properties to choose from for a limited number of very cautious buyers. This allows buyers to pick and choose and negotiate prices.  Hence the old adage “ never sell in a buyer’s market unless you absolutely have to!”

While it is a fairly established fact that the Cape St Francis property market has been flirting with a buyers market scenario since 2007, a short spell towards  the end of 2016 seemed to herald a change in this scenario. However a quick flurry of sales was short lived.

Sales there have been but these seem to be in two camps : prime property sales in the R4.5m plus level and sales of developed and undeveloped properties in the entry level range of under R500 000,00 for plots and under R1 400 000,00 for developed properties.

The current market cannot be described as either  a buyer’s or a seller’s market. The amount of stock on the market is extremely limited but so too is the number of committed buyers –  a limited queue of investors waiting to stake their claim in what is essentially a 2nd home market.

The above R4.5m sales are a very heartening indication that Cape St Francis is regarded as a worthwhile  investment area. Why wouldn’t it be? Limited number of properties in an uncommercialised village surrounded by nature reserve and fringed by one of the best beaches in South Africa.

The weighting of the sales to the entry level properties  is also an accurate indication of a generally restricted economy, of limited funds available for a 2nd home investment and perhaps an indication of the prevailing inability of buyers to raise bonds to finance substantial property purchases. 

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