Following the worst recession in decades, further weakened by recent tightening of Covid-19-related blockade restrictions and resumption of load restrictions, economic growth is certainly off the low ground, but still widely expected. It has been. 3% this year.
Coupled with this, many factors are expected to continue to support the current activity of the housing market, said Dr. Andrew Golding, CEO of Pam Golding Property Group.
This includes interest rates that are likely to remain at record lows this year, and a large number of ongoing potential first-time buyers (formerly tenants, but now can afford to buy real estate at current low interest rates. There is) included. A financial institution that is keen to build a foothold on the real estate ladder and continues to be motivated by homebuyers to expand their mortgages.
However, stricter blockade restrictions can threaten the strength of the expected economic recovery and can encourage already high levels of unemployment. Meanwhile, rising oil prices are expected to significantly increase fuel prices in February and perhaps later. This can have the effect of inflation.
“In reality, the solid pace of residential real estate activity seen as blockade restrictions were relaxed in late 2020 is currently underway, but is unlikely to be maintained throughout 2021,” Golding said. Mr. says.
He said, in part, partly due to the stagnation of demand that occurred during the initial blockade, reflecting the fact that other buyers were responding to aggressive rate cuts. It was.
Structural changes in lifestyle choices caused by repeated blockades, coupled with stable low interest rates, indicate that there are still areas of strong activity, such as the R700,000-R1.5 million price range identified by Lightstone. Suggests. The price range preferred by first-time buyers in 2020.
“But from the perspective of Pam Golding Properties, we continue to experience busy activities consistently not only in the following price ranges, but also in the price range of over 1.5 million rants, including the luxury goods market of over 10 million rants. “I will,” Golding said.
He said it is very difficult to predict the potential level of activity in the local residential real estate market this year. Regions offering affordable housing and attractive lifestyles could prove to be the most resilient in 2021.
According to real estate experts, aggressive interest rate cuts of 350bps in 2020 will give many first-time buyers access to their homes, and many ambitious people who previously thought they could afford to rent. Owning a home has become a viable option for the buyer.
“This compares to the more resilient and difficult economic conditions of condominiums in traditionally expensive areas of major metropolitan areas, secondary cities, vacations, retirement and free-owned housing in the town of” Zoom “. It suggests that it remains reasonably priced. “
Initially, these areas, including the suburbs around the major metros and Zoom Town, need to remain resilient.
“But if there is a new wave of conversion from commercial real estate to well-placed section title units at a relatively affordable price, this could see an influx of homeowners or tenants into the business node. There is-probably leaning towards young and non-wealthy buyers.
“In addition, because real estate is an immovable asset, these structural changes in lifestyle can lead to overstocking in some areas and potential shortages and development in others. “Golding said.
Strong sales of Pam Golding properties
According to the real estate group, the Pretoria region experienced the highest ever December (2020), with high activity in the price range of R2 to 5 million. Affordable homes will continue to sell in a relatively short period of time.
In December, Cape Town saw much more activity than expected on the Atlantic coast. This included the sale of five-bedroom, five-bathroom bungalows in a prime location on Fourth Beach in Clifton, achieving a selling price of R $ 37 million.
“Based on sales on the Atlantic Seaboard in recent months, especially in December, it seems that sales of affordable properties on the market by aspiring sellers are consistent,” Golding said. Stated.
He said that while the mid-low price range of the market attracts the most common inquiries, especially in the high-priced range of the market, properties with the right price generate quality leads, regardless of price. Was emphasized.
“This shows a changing trend. Usually, the top end enjoyed considerable flexibility in pricing with respect to the unique attributes of certain properties, such as aspects, views, and iconic features. , This market segment is currently as price sensitive as any other segment. “
The southern suburbs of Cape Town, the Southern Peninsula, the West Coast, and Hout Bay are also active in December and January, with all price ranges and demand areas, including notable consistent sales in luxury Constantia. ..
“In the heart of Borland Winelands, there has been a new migration trend since September 2020, with families relocating to buy homes from Houten, and great demand for rental properties,” Golding said. Stated.
“Since the beginning of 2021, we have been inundated with serious inquiries about real estate in Pearl and luxury homes in Franschhoek.”
The George area of the Garden Route continues to be a security estate, but coastal estates such as Gondwana Game Reserve, Pinnacle Point, and Springerby, and spatial locations such as the popular Golf Estate Fun Court and Kingswood stand out. Golf Estate, or Klaai Bosch Estate and Wergeregen Estate with scenic and expansive views.
“Especially Fancourt is interested in the limited vacant stands that remain in different precincts of different architectural styles. At Noem Noem in Fancourt, some vacant stands have recently been over 2 million rand. Soared at the price of, “Golding said.
Increased activity, including strong sales at the top end of the market over 3 million rand, including a cash sale of 6 million rants in the pre-listing Summerstrand, has also been reported by Pam Golding Property Port Elizabeth. Interest rates are bringing multiple offers as buyers compete for properties, especially those under R2 million.
At Port Shepstone on the south coast of KwaZulu-Natal, Pam Golding Property is funded in cash within a week of signing a purchase offer before the list is published and offers a home price R800, He said he sold it for 000.
According to Pam Golding, the deal was successfully completed and a second unit in the same complex was acquired in cash by the same purchaser within two days.
On the other hand, in Johannesburg South, the popular price range is R650,000 to R3 million, and free ownership and gated complex or gated real estate housing is most in demand in the R4.2 million to R6 million price range. Yes, as long as the price is correct.
The suburbs near the school are most resilient, such as Glen Vista, Malburton, Aspen, Brackenhurst, Brackenhurst, and the New South suburbs of Lenasia. Banks are willing to expand their mortgage lending, especially in Johannesburg South, with more deposits and cash purchases than usual.
Read: What to expect from the South African real estate market in 2021 is:
These regions and property types in South Africa are attracting buyers
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