Recovery in major centres points the way for property market

All the major metros in SA are showing signs of a property market recovery and this is likely to start spilling over into smaller centres soon.
That’s the word from Gerhard Kotzé, CEO of the ERA South Africa property group, based on feedback from the group’s offices countrywide.
“Some metros are doing better than others, but there’s a consistent pattern across the board and that bodes well for the market in general,” he says.
“Johannesburg, Cape Town, Tshwane, eThekwini and Mandela Bay are all showing a significant rise in residential demand, an improvement in confidence levels and greater realism on behalf of sellers in terms of pricing.
“The reasons for this happy scenario are not hard to find and clearly the positive effects of five percentage points worth of interest rate cuts since December 2008, are increasingly being felt and reflected in more property transactions and improved bank lending.”
The ERA group’s experience corresponds to the findings of the FNB Property Barometer in the third quarter of last year, which were based on a survey of estate agents’ opinions in the various regions.
Kotzé says that looking at the picture region by region, the Johannesburg area is trailing somewhat in terms of activity levels in the property market compared with the three major coastal areas surveyed, while Tshwane has a slightly stronger reading than neighbouring Johannesburg. 
“However compared with the soft market we have had since the start of the global meltdown the overall outlook is definitely far more positive now.”
Other pointers to the improving situation, he says are that the percentage of properties being sold at below asking price has dropped significantly and that the average time of a property on the market prior to being sold has fallen to about 3,5 months in eThekwini, four months in Johannesburg, Cape Town and Mandela Bay and 5,5 months in Tshwane.
“Another interesting fact to emerge from our research is that the percentage of home sellers planning to emigrate has dropped significantly, and athough it’s difficult to interpret this definitively, it’s probably fair to say the effects of the worldwide recession are discouraging emigration at this time.
“And that also has to be positive for the market in general, particularly in the light of anecdotal evidence that increasing numbers of skilled South Africans are actually returning to the country.”
Issued by ERA South Africa

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
    • 16 Jan 2018
      The start of the new year is symbolic of new beginnings. A good time to take stock of one’s possessions as well as how necessary they actually are. However, seeing as the process may appear daunting – a plan goes a long way.
    • 16 Jan 2018
      The Western Cape is still in the throes of a severe drought and many households have to adjust the way they use and save water. It is a little more complicated in sectional title schemes, however, as it is not that easy to implement grey water systems for multiple users and it is also difficult to monitor water usage accurately if there are no separate water meters
    • 15 Jan 2018
      In ideal rental situations, when a lease is signed the tenant will stay for the full duration of his lease without any complications and the landlord will uphold his obligations, creating a win-win situation for tenant and landlord.
    • 15 Jan 2018
      The Atlantic Seaboard’s housing market has stoically withstood the brunt of the growing economic and political instability, consistently achieving double digit growth way above the national average, however, in 2017 South Africa’s most resilient market finally began to yield to the pressure.
    • 15 Jan 2018
      Sectional title insurance can be a little confusing and, as a new owner, you may be tempted to just assume your body corporate has you covered. While this may be the case, understanding the extent of your coverage and your personal liability is the only guaranteed way to protect yourself against potentially costly oversights.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us