Property sales peak as buyers splash out

Some of South Africa's biggest real-estate companies achieved record sales last month as pent-up demand from local buyers spurred sales.

Andrew Golding, CEO of Pam Golding Property Group, said this week that the group expected sales of R18-billion for the year to March 2015, "which would take us back more or less to prerecession levels".

Pam Golding Property posted record sales last month of almost R1.83-billion. Group sales turnover has risen more than 20% year on year for the third year running.

The average selling price was R2.03-million, up from R1.83-million in the previous financial year. The national average price is under R900 000.

For Pam Golding estate agents, the greatest demand is for homes priced at R1.5-million to R6-million, accounting for more than half of total sales in the past 12 months.

Foreign buyers make up only 4% of total sales. Though there have been top-end sales in the R12-million to R27-million range in the Western Cape and Gauteng, the most notable increase in foreign buying was in the R400000 to R800000 band.

This "helps dispel the myth that foreigners are pushing up prices by paying in excess of market-related values ", said Golding.

Seeff also had a record month last month when it sold just under R4-billion (including commercial property) on strong year-on-year growth of 20%. Residential sales were about R1.3-billion last month, also a record for the group.

Chairman Samuel Seeff said bigger real-estate brands had gained market share. "There was a very slow patch from 2007 to 2013, and we're seeing some of the spillover of that pent-up demand."

"People just can't sit on the sidelines forever - they're back, buying and committing," said Seeff.

Jawitz Properties recorded its best monthly sales figure last month since 2009, with sales of just under R600-million. This was 61% up on a year ago. The average selling price is about 49% higher, though this included more luxury sales, which could skew figures.

CEO Herschel Jawitz said more and more buyers were putting in faster and better offers. "They've been in the market a long time, and most buyers on average have lost at least one property because they came in too low or too slow."