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Picking up a premium property for the proverbial song is the dream of most aspirant home buyers, one that has the best chance to be realised on Black Friday. With some luxury units in Africa’s wealthiest square mile attracting discounts of up to R500,000, sellers clearly are as keen as buyers to do a deal. Not all pundits agree with the practice of discounting real estate, not with decade-low interest rates in a competitively-valued property market, and arguing that these incentives tend to devalue the market. There’s little doubt though, that Black Friday incentives bode well for first-time buyers desperate for an opportunity to stake their claim to a bricks-and-mortar future. – Derek Alberts
By Denise Mhlanga
Sellers looking to offload their properties, or sell new developments, have turned to Black Friday to close deals.
Property prices already offer excellent value for money. Interest rates are at low levels last seen in the 1960s to make property finance cheaper for buyers. The combination has made it more affordable to purchase today than most buyers have ever seen in their lifetimes.
For this reason, some property experts do not believe sellers should be discounting properties this Black Friday.
Grant Smee, Only Realty managing director, says Black Friday does not apply to their company.
Smee doesn’t believe the industry should take part in Black Friday. The market currently offers the lowest prices and interest rates in decades, he says.
“We are at risk of devaluing properties further. The industry should be focused on finding quality buyers and tenants for the properties on their books. In addition, it should negotiate deals in line with both sellers and buyers,” says Smee.
Huge discounts and more for those participating in Black Friday
Sellers have become innovative in order to attract buyers, especially on Black Friday. While some offer huge discounts on properties for sale, others add appliances and other extras to sweeten the deal if one buys on Black Friday.
A number of developments in Johannesburg are offering aggresive discounts on units in upmarket developments in a bid to sell.
One luxury development in Sandton, Africa’s richest square mile, is offering an astounding R500 000 off the purchase of luxury apartments. Developed by Lushaka Investments, Central Square Sandton comprises two-, three- and four-bedroom units with prices starting at R3.675 million and premium units on the market for R21 million. This offer extends beyond Black Friday, and will end on 14 December.
Balwin Properties group sales manager Amber Heywood says their discounted Black Friday promotions will run until November 29. Discounts range from R25 000 to R159 000 on its Classic, Green and Signature ranges, she says.
“Traditionally, we’ve sold about 100 units on a Black Friday. We expect to sell in excess of this number this year, considering the compelling offers and the low interest rate environment.”
Heywood says buyers also qualify for additional discounts when they apply for an Eco or Green Home Loan options through banks. Eligible buyers are offered these discounts based on the green rating of the Balwin apartments, she says.
Heywood says Balwin focusses on lifestyle developments that include facilities such as open-air gyms, doggy parks and walking trails, among other attractions.
Apartments are also sold with a fridge/freezer, washing machine, stove and dishwasher, depending on the brand of apartment, as standard features, she says.
“This is a fantastic opportunity to take advantage of the incentivised pricing, coupled with record-low interest rates. Offers such as these afford first-time home buyers the opportunity to own their own home,” says Heywood
Leadhome CEO Marcél du Toit hopes that this year will be as profitable as last year when several properties that were discounted up to 20%, were sold on Black Friday.
“Black Friday was a huge success, especially on closing deals that would otherwise not be done,” he says.
Du Toit says in 2019, properties priced above R3 million attracted the largest discounts.
This year, on average, discounts start at around 5% and up to 25%, and are offered across various price bands.
Discounts vary and discounted properties will sell for that price within a period of one week, he says.
Read also: Top five tips for selling property
“During Black Friday particularly, sellers are willing to drop their price in order to sell. They understand that there is a time value of money at play. Discounting enables them to sell quickly instead of incurring holding costs for months in order to get the eventual sale,” he says.
In addition, LeadHome is offering sellers a chance to win a commission free-sale for this month only. All they have to do is enter their details into a draw, and if selected, LeadHome will sell their property for free.
He says everybody loves a good deal.
“For sellers, Black Friday presents a unique opportunity to generate significant buyer interest on your property,” adds Du Toit.
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