Following on significant sales of R400 million in January alone, Pam Golding Properties’ Western Cape metro region has gone on to post bumper first quarter sales figures for 2007.
Regional MD Mick Joyce reports that his agents closed R772 million in sales for the period January to March 2007 – representing market share of 17 percent.
Dr Andrew Golding, CE of the Pam Golding Property group, says these results well exceed the region’s budgeted growth of 10-12 percent for the year. “This reaffirms PGP’s consistently sound performance in the Western Cape, which is home to the group’s headquarters,” he says.
Joyce has voiced delight at the first quarter results: “These sales indicate that the property market is holding its own despite the tightening interest rate environment. When one compares national statistics for the first quarter of 2006 versus 2007, we see that the number of units sold across all agencies, dropped by nearly seven percent, as the effects of previous interest rate increases came into play. However despite this slight slowing down of sales activity, there was a significant increase in the rand value of sales of 17 percent, year-on-year. This confirms our belief that the housing market has stabilised and that sound appreciation is being achieved, with a generally steady demand for homes in all price brackets, and somewhat higher activity in the upper end of the market. In fact, given the interest rate climate, we do not believe a seven percent drop in unit sales is very significant. We are further gratified that the PGP drop in unit sales was well below the industry average, at three percent. In this light, and taking the seasonality of the Western Cape market into account, we are confident that the Western Cape metro region will achieve its forecast growth of 10 to 12 percent for the year.”
Joyce adds that the strong first quarter results are continuing into the second quarter, with sales in May totalling a very healthy R389 million, and average 12 month market share standing at 16.8%. Average house prices also rose from R580 000 in April to R600 000 in May, according to Standard Bank data. All this despite the winter months traditionally being quieter ones for the property market. Joyce points out that some commentators have attributed the strong May data to a push by agents and bond originators to close deals prior to the implementation of the National Credit Act on 1 June.
“Whilst this may yet prove to be the case,” he says, “all indications are that PGP continues to experience sound sales activity in June, despite the Act’s coming into effect. The upper end of the market in particular is doing well, proving to be resilient to the latest interest rate hike.”
Article from Cape Business News
