There are a few early signs of recovery in property development, after this sector endured a particularly difficult time over the past 18 months, says Pam Golding Properties’ MD for the Western Cape metro region, Laurie Wener.

But, she says, there is still a long way to go.

“The recession took its toll on developments, especially off-plan buying, which constitutes most development sales,” says Wener. “One of the main advantages to buying off-plan is that, in a steadily growing market, you benefit from buying now and paying later, where buyers pay a 10 per cent deposit and the balance on transfer at completion – by which time the property would have already increased in value. But of course with the market in a negative phase, this benefit was lost, and with it a significant number of off-plan buyers.

“In addition to this, the National Credit Act made it much more difficult for buyers to get finance for off-plan purchases in particular, and existing properties offered better value than potential new builds.”

Many developers put projects on hold, but Wener says, some of them are again showing signs of interest in re-entering the market.

“It is still early days, but there are signs of activity in this market again, and we are talking to several developers who are keen to get moving on new projects.”

Wener says some developers continued to operate through the recession to complete projects, taking the risk despite the reduced number of buyers and relying on sales to end-users once the project was complete.

“This has to some extent succeeded,” she says, “and will continue to do so as mortgage finance becomes more readily available. There are steady sales and resales in completed developments, such as the Quadrant and MontClare Place in Claremont, The Orangerie in Gardens, and the Majestic Village in Kalk Bay.”

PGP’s director for developments in the southern suburbs and South Peninsula, Bev Bloch, says seven units worth R13 million were sold at the Quadrant in the past six months – five of them since December.

“The current phase is complete and ready for occupation,” says Bloch, “and there is only one two-bedroom unit still available, plus a few penthouses. The next phase is due for completion in the next few weeks.”

She says there were five sales at MontClare Place in the past six months, three of these in February alone, with a combined value of R9.63 million. A further four units worth R19.108 million have sold at the Majestic Village since October – one of them at R7.5 million, a record price for an apartment in the area.

There has also been an upswing in development activity in the Central City area. PGP’s area manager for the City Bowl and Atlantic Seaboard, Basil Moraitis, says the company has several developments for sale, including the newly-launched Six, which has just been completed on the edge of the Central City.

Studios are priced from R629 000, and two-bedroom apartments cost up to R1,239 million. There is also the luxury apartment complex the Orangerie in Gardens, where only a few units are still for sale at prices ranging from R1,95 million for one-bedroom apartments, and from R2.65 million for two-bedroom units.

Moraitis says Quarry Hill in Tamboerskloof is nearing completion, with occupation expected by mid-2010.

“There are still four units available for sale in this development,” he says, “priced from R7.5 million to R15 million.

Eden on the Bay on Blouberg’s Big Bay beachfront lifestyle and residential units, and PGP is marketing apartments priced from R1.39 million to R5.3 million.

Most apartments are bigger than 200 m2, and each has two parking bays included in the price.”

PGP is also marketing two developments along the Western Seaboard – Melkbosch Village in Melkbosstrand, and Eden on the Bay in Blouberg.

At Melkbosch Village buyers can choose between sectional title or plot and plan purchases, including two-bedroom apartments priced from R685 000 and two- or three-bedroom homes from R975 000.

Eden on the Bay is a mixed use development with two- and three-bedroom apartments as well as some penthouse units. Prices range from R1,39 million to R5,3 million.