World

Differences in home buying patterns between Johannesburg and Cape Town

South Africa’s sectoral title market has become a key component of real estate sales, rising from 13% of total sales in 2005 to nearly 28% in 2020. Data from the real estate company Pam Golding Properties shows.

Dr. Andrew Golding, CEO of Pam Golding Property Group, said the rise of departmental title life has historically been a cost-effective, convenient and lock-up and go life at a major hub close to amenities. He said it has been driven by several factors, including. Coupled with security and affordability.

“In 2010, sectoral title units accounted for 22% of all homes sold in South Africa, according to Lightstone, which steadily rose to about 28% in 2016 and then leveled off. It has become.

“However, since May 2020, home buyers have entered the market for the first time under the influence of low interest rates, and divisional title sales account for 25.3% of total sales, a new upward trend. Was seen. “

By the end of 2020, he said, after averaging 27.6% annually, sectoral title units accounted for 29.3% of all homes sold.

Gauteng continues to account for more than half of all divisional title units sold in South Africa.

In 2010, Houten replaced 50.8% of all divisional title units sold domestically. This is an indicator that rose to 52.4% in 2020.

“In 2010, KwaZulu Natal accounted for the second highest percentage of title sales by sector, followed by the Western Cape at 16.3%,” Golding said.

“But between 2011 and 2016, the Western Cape gained market share, which may be due in part to the tendency to move to the region.”

Although the total percentage of cape town title sales by sector has declined in recent years, the region is now South Africa’s second largest sector title market, accounting for 18.2% in 2020 and KwaZulu Natal at 14.4. Occupies. % Of the same year.

According to Golding, Eastern Cape also has increased its share of the sectoral title market from 4% in the last decade to 5% in recent years.

According to Golding, Wilderness accounts for the largest proportion of title sales by sector, while the Western Cape dominates in the high-priced range of over R3 million.

During the initial migration trend, he said, Western Cape experienced a surge in top-end divisional title sales.

However, this was subsequently registered before the migration trend when those who chose to relocate from a regional perspective moved primarily from Houten to the Western Cape coastal area and then to the north coast of KwaZulu-Natal. It settled down to a certain level and became stable.

Freehold vs Section Title

Sandra Gordon, senior research analyst at Pam Golding Properties, said that since 2010, inflation in section title home prices has underperformed compared to rising free-ownership prices.

She said the price inflation gap appears to close again as rising free-holding prices appear to be losing momentum while rising sector title prices are gaining momentum again.

“As of 2021, the Western Cape has the highest average price of sectoral title units sold, at 1.44 million rand, KwaZulu Natal at 1.22 million rand, Houten at 1.02 million rand, and the east. The state of Cape remains R938,818, which is less than R1 million in the past year.

“But the Eastern Cape recorded the strongest growth in four years at + 28.3%, followed by KwaZulu Natal at 12.7% and Houten at 4.7%, while the Western Cape showed a slight decrease at -4.9%. To the price adjustments I experienced in this market. “

According to Gordon, based on size, supported by demand, smaller two-bedroom free-hold homes are currently enjoying the highest rise in home prices, followed by the next-largest three-bedroom cross-section title. Housing continues.

In 2020, the price of two-bedroom free-hold homes rose the most. This trend continued until the first quarter of 2021, when the average price was 6.17%.

“The weakest price performance in both periods was recorded by the two-bedroom section title home, probably because the blockade and the need to work from home increased the demand for more spacious apartments,” Gordon said. Says.


read: Johannesburg is amortizing debt to payers – this is the amount you are eligible to receive

Differences in home buying patterns between Johannesburg and Cape Town

Source link Differences in home buying patterns between Johannesburg and Cape Town

Back to top button