south african property market forecast 2020

With each change in our socio-economic and political environments, there is a change in how properties look, how much they sell for, and which ones are in demand. Cape Town has been named the digital hub of Africa, with the CBD, Woodstock and Stellenbosch surrounds becoming home to a growing number of tech entrepreneurs and start-ups. Follow the link in the email to complete the registration process. This market was already taking strain before the pandemic, and one forecast estimates that luxury homes could lose almost 20% of their value this year. Trend #4 - Self-sustaining homes Meantime the deterioration of affordability in the sought after suburbs close to the mountain continues to benefit areas further afield such as Northern Suburbs and the Western Seaboard. South Africa’s house prices fell 1.22% adjusted for inflation during the year to Q1 2020 (a nominal house price rise of 2.79%, according to ABSA). Please contact our Property24 Support Team for further assistance. Supply is slowing in response to weak demand, with fewer new houses and sellers keeping or removing homes from the market. If you're looking to buy a house in the south-west, the time is now: The Cape Town property market is going through a few things, and house prices are coming down. Tel. The median price of a sectional title home in ‘Toti this year was R750 000 while that of freehold homes was under R1.5 million. During South Africa’s worst previous recessions after World War II, residential property prices fell by up to 10%. Yet despite the knock-on effect of the drastic load shedding measures, there remain a number of positive factors underpinning the housing market, namely the demographic dividend of a young population – including first-time buyers - fuelling property purchases and rentals, relatively low interest rates, affordability returning as prices correct, and a strong appetite for lending from increasingly competitive financial institutions – with ooba’s loan to value rising to 88.4% in October which is the highest level since the data series began in 2007. Some might say that eco-friendly and sustainable living might just be the future of real estate in South Africa. This apartment in, Apartment living is growing in popularity and, Durban is also on the radar with billions being invested in inner-city rejuvenation projects. The South African property market is no exception. Some of SA's priciest properties have already seen steep price cuts. The live, work, play concept is also beginning to emerge in Durban CBD, with the privately owned company, HOMii Lifestyle launching its next phase of trendy, highly-secure and serviced apartments. To learn more about our latest five-year forecasts across mainstream and prime residential markets read the Autumn 2020 report here.. Housing Index in South Africa averaged 127.55 Index Points from 1966 until 2016, reaching an all time high of 544.47 Index Points in November of 2016 and a record low of 3.62 Index Points in January of 1966. Smart homes are becoming a top choice within the property market of today. With a growing number of young people looking for accommodation and with people of all ages and incomes showing an increasing preference for smaller, more conveniently located homes – and with the existing stock of homes predominantly freehold suburban houses, there is plenty of reason for ongoing developments. Young buyers remain a key positive for South Africa’s housing market, ensuring a steady supply of new homeowners as we have a ‘youth bulge’, with many eager to gain a foothold on the property ladder. We are especially seeing this trend in the property investment market. The KwaZulu-Natal North Coast area is highly sought after among home buyers with a host of new developments on the market. The sectional title property market has grown significantly in the past few years. There is also evidence of new residential units becoming available in mixed-use precincts and buildings in CBDs across South Africa (such as Jewel City in Johannesburg). Appliances, such as fridges, TVs, and stoves are designed with software that can be linked with personal devices and online accounts to adjust the home environment according to your specific wants and needs. It is affected by several factors, each making an impact on how the overall market operates. In KwaZulu-Natal, the introduction of direct flights between London and Durban by British Airways a year ago has resulted in an 11% increase in international passenger numbers in the year to September 2019 compared to the same period last year, bolstering King Shaka International Airport’s status as South Africa’s fastest growing international air gateway. Durban too is on the radar for investment, with the announcement earlier this year of R62 billion being invested in inner city rejuvenation projects in the CBD in a partnership between local authorities and private business. Contact Seeff today to connect with an experienced and knowledgeable agent who knows the ins and outs of purchasing a property. This trend will continue, with areas such as Cape Town’s Atlantic Seaboard and City Bowl set to benefit most from Cape Town’s longstanding reputation as a prime global city, while semigration to the Garden Route, KZN and Boland in the Western Cape is ongoing. 'Calm in the coronavirus storm' Another area gaining momentum in popularity is Ecovillages. Tourism is recovering after the drought and aided by an easing of visa restrictions and piloting of an electronic visa application system coupled with increasing numbers of direct flights, will bring more money, translating into economic growth and jobs, and more prospective buyers to the country. Climate change is one of the hot topics on the lips of many people these days. The forecasts we provide are aimed at guiding our customers’ strategies as well as their investment and purchasing choices. South Africa - Economic Forecasts - 2020-2022 Outlook. Also new growth nodes are becoming increasingly popular such as George and Pretoria East – the latter with a huge number of new developments underway, also Gauteng East and West, Midrand, the KZN Highway Corridor, Krugersdorp, Plettenberg Bay and Knysna. National house price inflation peaked at 6.35% per annum in 2014 during the market's recovery following the 2007-2008 crash and has been slowly decreasing thereafter closing at a five-year low of 1.7% in 2019.We expect the market to remain in consolidation with a good chance of lesser growth and activity in 2020. Apart from CBDs and major centres, peripheries of key nodes will continue to enjoy spill-over of demand - for example, Cape Town’s Northern Suburbs benefiting from waiting lists in Southern Suburbs schools, and South Peninsula in Cape Town as traditional suburbs in the Cape Metro become too expensive. It is also one of the large independent property valuation (real estate appraisal) firms in South Africa. This one bedroom apartment in, The Garden Route continues to attract semigrants from around SA. by Tom Head 13-06-2019 12:15 Trends shaping the commercial property market 08 Apr 2019. In addition, the world’s second largest beer brewer, Heineken, is to set up a production facility on the North Coast near Dube TradePort, with a R6 billion brewery to be built over the next two years. Real estate across the globe is an intersectional market. Realistically, South Africa can expect more of the same in 2020 with house price inflation ending in positive territory but just barely above 0%. by Norma Young 23-01-2020 14:01 Macro-economic and political landscape uncertainty suggests that a cautious outlook for South African … However, this will not translate into a meaningful recovery until economic growth and sentiment strengthens, and there is an improvement in incomes and employment opportunities. Copyright © 2020 Property24 - All rights reserved. Rode & Associates (Pty) Ltd. is a 33-year old South African firm specialising in real state economics, property valuations, property research, town planning and property consultancy. There is strong demand for more affordable homes in CBDs around the country. Property is a serious business, so make sure you have the right professionals on your side who offer the most up-to-date advice at the right time. Smart technology is starting to make its way into the South African property market. One example where we are seeing this happen is with the popular third party rental app Airbnb, which allows travellers to rent people’s homes or apartments at competitive prices for specific times and days. While the overall number of new buildings may have slowed, growth nodes continue to experience demand and developers are responding in areas such as Pretoria, the KwaZulu-Natal North Coast, Krugersdorp, East London, Cape Town, the Boland – notably Stellenbosch and Somerset West, and Fourways, for example Steyn City. That is if we see another interest rate drop at … You are using Internet Explorer or try out Google Chrome or Mozilla Firefox who knows ins! 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