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Claremont sales and values hold up remarkably well 2009-04-14
The last three months at Rawson Properties Claremont franchise have proved conclusively that this area remains quite possibly the most desirable and sought-after in the entire Greater Cape Town area, says George Hayes, Rawson Properties’ long-serving franchisee who has run this franchise for a decade and who has had 17 years with the Rawson Group.

“I predicted when I took over here at Claremont that this would be an area that would always perform better than others,” said Hayes, “and that is exactly what has happened.”

His territory, which includes Lower Claremont, Lower Kenilworth, Mowbray, Rosebank, the Rondebosch section title market and Park Estate, has benefitted from being close to schools, UCT, the technikon, Groote Schuur Hospital, the Red Cross Children’s Hospital, several sports grounds (and the Sports Science Centre) and the city centre, and it is this, above all else, says Hayes, that ensures its ongoing desirability.

“Some areas have seen value drops of 40 to 50% but in these areas they have never been over 20% and in many cases are closer to 10%. What is more, there are now unmistakable signs that the long-awaited levelling off is now taking place in response to the lower interest rates.”

Just how well things have panned out for Hayes and this team is shown by their recent sales figures. In December they were 40% up on their figures for December 2007. In January they were 30% up on January of last year and this February they will equal their figures of February 2008.

Values, as indicated, have also held up well: in Lower Claremont, Lower Kenilworth and Mowbray homes are selling from R800 000 to R3 million, in Rosebank prices are higher, from R1,2 million and in the sectional title market they are R500 000 to R4 million. In Rondebosch East and Kenwyn prices can go as high as R5 million but the average is just around R1 million.

Looking ahead, Hayes says that his team will do steadily better this year not only because of the new interest rates but also because the banks will soon begin to succumb to pressure to be more lenient to bond applicants.

“Being prudent is one thing, causing the home marketing industry to stagnate is another,” said Hayes. “Even if lending managers are forced to be more accountable for bad loans, they will in the next few months have to loosen the purse strings a little.”

Rawson’s Claremont agents, he added, now have an average service of five years and they have all fulfilled the Recognition of Prior Learning and other obligatory training courses. Furthermore, says Hayes, every member of his team has a laptop and is computer literate.

“I foresee a time when 80% of all marketing, referrals and introductions will be via online services,” says Hayes. “The older type of agent who likes to think he can operate without the internet is completely out of touch.”

Footnote: for the record, at the end of 2008, Hayes’ franchise took the Rawson Group National Prize for the Highest Fees Earned. Their startling performance this year, says Tony Clarke, MD of the Rawson Group, was expected.