With homes selling within days of coming onto the market, it seems cash is king for buyers wanting in on the Cape’s scarce pool of property hot spots.
That is the word from Seeff group chairperson Samuel Seeff, who says that according to data from Propstats the Cape metro attracted some R10.3bn in cash deals for the year covering July 2014 to end-June 2015.
The hot spots where cash buyers are most prevalent include the Atlantic Seaboard, City Bowl and southern suburbs along with areas such as Hout Bay, False Bay and Blouberg.
In the City Bowl just over half of the deals concluded over the last year were cash sales. This translates to about 402 of the 753 odd units sold across the area.
Stand-out areas include the V&A Waterfront that has seen a significant sales rally over the last two years with some 84% of all deals concluded for full cash, including a Pembroke apartment sold by Seeff for R22.75m to a Capetonian cash buyer.
In the southern suburbs, inclusive of the Constantiaberg area, the cash trend too is particularly evident at the top end of the market, says James Lewis, managing director of Seeff for the area.
Full cash transactions account for about 47%, or 763 of 1 639 units sold over the last year. Here too the top R20m-end attracted the most interest, with all but two of the 12 deals worth R363.7m settled in cash.
About 60% of buyers were Capetonians.
On the other side of the peninsula more than half of the 300-odd units worth just over R 1bn sold in Hout Bay were to cash buyers, adds Lewis. Here, too, buyers have mostly been Capetonian.
The key advantage of buying cash is that it propels you to the top of the list of competing buyers and puts you in a much stronger bargaining position.
For the seller, it generally means a relatively quick deal as these transactions are usually not linked to a buyer having to sell a property first.