“PROPERTY SCARCITY PHENOMENON”
Ebotse enters cycle of limited availability
Ebotse Golf and Country Estate has entered a very interesting phase of its highly successful development. Scarcity of available property has arrived and demand for property on the Estate is rising rapidly, heralding an inevitable increase in the prices of these scenic stands.
“This is wonderful news for all those who’ve had the foresight to invest early in our Estate,” says Ebotse managing director Vince Cockbain. “On the other hand, it’s also potentially bad news for those who have adopted a ‘wait and see’ approach. Pricing on the Estate is already above what some can afford and this trend is poised to accelerate substantially over the next 12 months.
“In the lifecycle of any large and sought-after development like Ebotse, there comes a very interesting phase when scarcity of supply seems to arrive without warning. This phenomenon catches many would-be buyers by surprise and even sneaks up on homeowners rather unexpectedly.”
Cockbain explains that during the development phase of a residential estate, much more property is usually sold than what is already developed. At Ebotse, freehold stands are now sold out and may become available if an owner decides to sell.
“In addition, there’s no reason why the developer would not decide to develop some of the remaining unsold stands and not simply sell off the vacant land. This would tighten the already limited supply of stands even further. It’s also very interesting to see that prime stands, such as our The Waterfront development, are now in very short supply.”
Cockbain says an astonishing picture is emerging from Ebotse’s sectional title units. The Bishops, Herons, Eagles, The Waterfront, The Fairway and the newly launched The Views developments have all been bought from the developer. The Views was sold out within seven days of the development’s pre-launch and before the first advertisement appeared in the media.
“This means that any potential buyers now have to look for resale stock to gain access to our sectional title market,” he continues. “At present, however, there are very few resales happening in these developments — there simply is no stock available. I believe the reason for this is that the owners are getting exceptional rental returns on these units and the rental vacancy rate is practically zero. This trend is further reinforced by the fact that the developers are retaining some stock in these sectional title developments, as they are enjoying the rental returns being achieved.
“As Ebotse experiences this progressive scarcity of supply, we’re also seeing stronger and stronger demand. This is because as the Estate matures, it becomes a very attractive place to live. Ebotse becomes more appealing as it develops, with a well-established security record and with construction activities on the estate finally winding down. Word is getting around and people are realising that time is running out to be a buyer on the Estate before prices really start moving upwards.”