The R8.9 million property that sold in one day

Correctly priced properties in high-demand areas sell quickly in South Africa, with the current average time on the market being lower than the long-term average.

Seeff Property Group recently outlined the factors that influence a property’s time in the market and highlighted some exceptions where properties sold in record time.

The company defined “time on the market” as the duration from listing a property to its confirmed sale date, i.e. when all the conditions of sale have been met. 

It said the current average is just under 12 weeks, slightly faster than the long-term average of 13 weeks. However, it noted that there are many variables.

For example, when there is higher buyer activity, properties tend to sell faster and often attract multiple offers. In addition, if the property is in a high-demand area and price range and is priced correctly, it should sell quickly. 

For example, Seeff recently sold the most expensive house in Pinelands, Cape Town, in less than a week for R7.95 million.

Seeff Pinelands licensee Johan Meyer explained that low stock levels combined with high demand mean properties sell much faster.

This has resulted in properties below R4 million in Pinelands and Thornton selling within under 30 days, or approximately 4 weeks. However, others may take up to 6 months or longer to sell. 

For example, Seeff Claremont agent Belinda Keys recently sold a property for almost the full asking price at R8.9 million within one day, before it could even be listed. This property was in Cape Town, a notoriously high-demand area.

Two other properties in the area saw a similar effect, with one sold for the full asking price of R5.6 million, and another for more than the asking price at R3.85 million.

Location, price, region, the real estate agent, and time of year are all factors that can affect how long a property spends on the market.

Location and price

Keys explained that demand for the location and regional differences play a key role. For example, coastal areas with mostly holiday homes might take longer to sell. 

A recent Lightstone study revealed that Cape Town properties sell within 11 weeks (80 days), which is faster than the national average of 12 weeks. 

In contrast, Joburg property takes 14 weeks or around 100 days on average to sell. 

The study also revealed that approximately 60% of all property sales are finalised within 12 weeks, with about half of those sold within a month.

Location is also crucial for time on the market when looking at coastal versus inland, as coastal properties, especially in holiday areas, can take longer to sell. 

For example, Seeff Mossel Bay sales manager Herman Spies said properties are taking about six months or longer to sell in the area this year. 

He added that some listings, both exclusive mandates and open listings, have been on the market for almost a year, as holiday buyers are taking much longer to decide.

Seeff Karoo and Country sales manager Jaco Badenhorst said a shortage of properties listed in an area tends to make a market highly competitive, resulting in properties selling much faster. 

“We are finding this to be the case in many of our small towns where properties can move quite quickly, and even attract multiple offers,” he said.

Seeff explained that price bands also affect how long it takes to sell a property, with the lower price bands generally selling much faster.

Using the Cape Town Atlantic Seaboard as an example, the average time on the market is currently around 98 days or 14 weeks. 

For houses in the area priced below R10 million, time on the market drops down to 52 days or 7.5 weeks. Properties over R20 million take around 143 days or 20 weeks to sell.

Agent and time

“The agent has a lot to do with how fast a property could sell, and sole mandates especially sell much faster as a single agent focuses on the sale,” Seeff Atlantic Seaboard licensee Ross Levin said. 

For example, two Seeff agents recently sold eight apartments in eight weeks in the Sea Point/Green Point area. 

In contrast, three other agents recently sold four houses in four weeks, worth over R100 million in Camps Bay.

Levin added that seasonality also affects the time it takes to sell a property, and demand tends to be higher in the early months of the year.

This is because salary hikes are taking effect, people are starting new jobs, or they need to relocate elsewhere for work. 

Things tend to slow down towards the later part of the year as people get busy preparing for the annual holiday season. During the holiday periods, properties generally take longer to sell.

People typically sell their property about every 5 to 10 years, with 7 years being the average, although this has been trending closer to 10 years according to recent bank data. 

However, Seeff Property Group chairman Samul Seeff said there are always people buying and an opportunity to sell within a reasonable time. 

“If a property is not selling within the average time frame, then it usually comes down to two options – change your price or change your agent,” he said.