With the outcome of the ANC elective conference settled and the Budget Speech in February 2018, affecting business and consumer confidence, and market sentiment in general, South Africa’s residential property market is expected to maintain its resilience.
This is according to Andrew Golding, CE of the Pam Golding Property group, who said this reflected an ongoing healthy appetite for property investment – particularly in major metros and key hubs.
“From a housing perspective, the fact is there is a pent-up demand from a groundswell of aspirant buyers wanting to acquire a foothold in the property market, while others in the marketplace – both first-time buyers and existing homeowners – are seeking homes to buy or rent as career and lifestyle changes dictate a change in address,” he said. “Another favourable indicator is that developers are continuing to bring new products to the marketplace across a range of price bands in response to the demand for residential property in key growth nodes in Cape Town, Johannesburg – including the ‘New North’ of Fourways, Pretoria East, the KwaZulu-Natal North Coast and Port Elizabeth.
“Notably in PE, according to Lightstone statistics, some 90,000 new homes are entering the housing market each year, providing accommodation mainly for the below-R1m price range. In the major metros and economic hubs it is evident that densification is a factor which will increasingly drive demand in the residential property market. Interestingly in Cape Town, in line with this trend, the municipal by-laws were recently amended, thereby giving homeowners the right to build a second dwelling on most properties, as long as certain criteria are met. In addition, the live, work, play, shop concept continues to gather momentum partly due to major cities’ increased traffic congestion, while the transition to ‘green’, energy and water-efficient homes will gain impetus not only for the purpose of sustainability and drought – as still evidenced in the Western Cape – but also due to the rising cost of utilities.”
Trends to keep an eye on
- Increasing demand for sectional title properties in convenient locations
- Continued demand for secure estate living, both freehold and sectional title, as well as homes catering for the ever-growing, retirement market – those wishing to retain an active lifestyle and enjoy a range of amenities on site