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storyAnother leading figure in the Cape residential property sector, Mike Abrahamse, franchise principal for Rawson Properties in Blaauwberg, says that all the “signs” in his area point to the slump in the residential market now ending.
“It has been along recession but in my area (I cannot talk for others) there are signs that we are now out of the doldrums.”
Asked for statistical evidence of this, Abrahamse said that his franchise’s sales figures for September, October and November are 300% up on those of the same period last year – and, he added, in 2008, his area has remained one of the better performers in SA residential property.
“I think,” he added, “that we can find four reasons for this very welcome improvement.”
The first, he said is that the 500 base points interest rate drop has, as he predicted earlier this year, at last started to impact on the market.
“It always takes a year for an interest rate drop to have full effect,” he said. “This time the recovery, if that is not too strong a word, has been slower than usual – but it is now beginning to be evident.”
The second factor leading to a rise is that the banks’ much reported new willingness to lend bond finance is becoming a reality, albeit slowly.
“We have at last begun to see a few instances of 100% bonds plus costs being granted. If this trend now speeds up, we will all benefit.”
The third reason, said Abrahamse, is the simple rejuvenating effect of spring.
“Cape buyers do not exactly go into hibernation in winter but they certainly do become more positive and active when summer makes an appearance.”
The fourth reason, said Abrahamse, is that some of the ‘men-in-the-street’, often protected by a trade union, are now earning wages that were no more than a pipedream a decade ago.
“This means that at the bottom of the market we are seeing more activity than ever before and this has a domino effect on the whole market.”
In his own franchise, said Abrahamse, the relocation to a high-profile position on Blaauwberg Road has done much to attract clients. Two recent “walk-up” buyers have come in looking for properties valued at over R7 million.
Despite the relatively tough market this year, Rawson Properties’ Blaauwberg franchise has continued to attract agents: they now have 16, making them one of the biggest agencies in the area.
“What is more,” said Abrahamse, “almost all are very experienced.”
For further information contact Mike Abrahamse on 021 557 5514 or email mike.bw@rawson.co.za.
