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south african property market forecast 2020

January 16, 2021 by  
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There is strong demand for more affordable homes in CBDs around the country. The extension of the Gautrain will also be important in benefitting peripheries as it will make new areas more attractive as commuting to work becomes easier. Introduced this month (December 2019), and with a flight time of just 14.5 hours, the new direct flight between New York in the USA and Cape Town augurs well for tourism and foreign direct investment – as the USA has a huge luxury travel market - and according to Wesgro, has already resulted in an increase in forward bookings by US tourists to Cape Town for the summer season. Among Durban inner city renewal investments are: the R400 million extension of the Durban Promenade, R2 billion mixed-use development on the site of the old Durban Drive-in, R44 million Rivertown Development, R2.8 billion retail mall and residential apartments, and R240 million water mains project in Mahatma Gandhi Road. This is likely to occur in new developments which include greater energy and water efficiency and alternatives to municipal utilities. Quarter-on-quarter, house prices increased by a meagre 0.11% and fell by 1.45% in real terms. This one bedroom apartment in, The Garden Route continues to attract semigrants from around SA. Trend #4 - Self-sustaining homes 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. Trends shaping the commercial property market 08 Apr 2019. Location. Zevenwacht Lifestyle Estate on the Stellenbosch Wine Route, has launched 10 independent living retirement apartments at the limited release price of R994 900 - with no transfer duties payable. That is if we see another interest rate drop at … Coupled with this, the Cape Town Rugby Sevens currently taking place in the Mother City (13-15 December 2019) is to be eclipsed by the World Rugby HSBC Sevens Series in 2022, which is also hosted at the Cape Town Stadium, while England supporters are about to flock to our country’s shores for the forthcoming cricket test matches versus the Proteas. 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. The sectional title property market has grown significantly in the past few years. 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. Trend #5 - Growth in sectional title market Trend #3 – Smart homes and digital living It is affected by several factors, each making an impact on how the overall market operates. Dr Golding outlines the group’s vision for 2020: While there will still be pockets of activity and price growth, the performance of the national housing market is likely to remain subdued. In this blog, Seeff unpacks five of the property market trends unfolding in 2020. The Dube TradePort Special Economic Zone (SEZ) recently received the coveted 2019 UN Investment Promotions Award for performing exceedingly well in promoting sustainable investment in KZN and South Africa, particularly facilitating the investment of R1.3 billion by Mara Phones. It is also one of the large independent property valuation (real estate appraisal) firms in South Africa. Further to this, the 2021 British and Irish Lions tour will attract additional visitors to South Africa. Contact Seeff today to connect with an experienced and knowledgeable agent who knows the ins and outs of purchasing a property. Apart from the wake-up call from load shedding this month, increasingly people are looking to add energy and water saving features to their homes to reduce monthly utilities costs and enhance value, and climate change means that this will becoming a growing imperative, where affordable. The town of Queensburgh is experiencing huge demand from first-time buyers and young families particularly in Malvern and Escombe, with homes priced under R1m selling within days if not hours of listing. 2020 will be good for buyers. The prospects for the South African commercial property sector for 2020 remain stagnant, according to a new report by John Loos, Property Sector Strategist at FNB. Property market 2020: Pandemic fallout creates perfect storm Covid-19 worsens housing shortage, fuels demand from cash-rich buyers and returning emigrants Thu, Dec 10, 2020, 06:00 During South Africa’s worst previous recessions after World War II, residential property prices fell by up to 10%. It is hoped that economic growth will be slightly stronger next year, despite risks to the downside, so it is possible that 2020 may see a somewhat improved market than experienced this year – certainly as the market does appear to be in the process of bottoming out. On-demand office space, e-commerce, inner-city gentrification and worker mobility trends have resulted in property investors exploring new models to turn a profit in the soft market. Please contact our Property24 Support Team for further assistance. Our beautiful country offers breathtakingly scenic landscapes and spectacular coastlines, vibrant cities and rural places of interest. It is in this space that people are trying to supplement their incomes from the growing SA tourism market. Smart technology is starting to make its way into the South African property market. The South African property market is no exception. Copyright © 2020 Property24 - All rights reserved. Commercial Real Estate Market in South Africa - Growth, Trends, and Forecast (2020 - 2025) Published by: Mordor Intelligence LLP: Product code: 925424: Published: February 1, 2020… Some might say that eco-friendly and sustainable living might just be the future of real estate in South Africa. In this blog, Seeff unpacks five of the property market trends unfolding in 2020. The latter is set on the only available land that is zoned light industrial and commercial in ‘Toti, and will be the largest industrial development the area has ever seen – and is expected to create meaningful employment opportunities over a 20-year period. House prices in South Africa have continued to ... boosting the demand in the property market. Trend #2 - Short-term rental investment partnerships with family or friends Congestion and the deterioration in affordability appear to be the primary reasons that semigrants began looking beyond the Cape metro market for homes along the Garden Route and KZN. Before we begin analysing what to expect in 2020 property trends, it’s prudent to reflect upon the South African property market as it stands at the end of 2019. There are also signs that semigrants, who initially rented, are beginning to purchase homes, so while the semigration trend may have slowed to some extent, it is still having a positive impact on the property market in areas where they have relocated. Real estate across the globe is an intersectional market. 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. 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. Investment Review South Africa 2019/2020 The economic impact of Covid-19 is expected to place downward pressure on rental levels and capital values across all market segments, and the trend is expected to persist over the short to medium term, as markets remain in a downturn phase. The KwaZulu-Natal North Coast area is highly sought after among home buyers with a host of new developments on the market. To learn more about our latest five-year forecasts across mainstream and prime residential markets read the Autumn 2020 report here.. We are especially seeing this trend in the property investment market. 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. Do you want to know what it would be like to live it up in one of the most prestigious suburbs and estates in SA? Online shopping increased to 1.8% of total retail spend up, from 1.2% in 2016. Continued demand coupled with limited land is resulting in densification, with single freehold homes being replaced by several sectional title properties, particularly evident in areas like Newlands, Claremont and other Southern Suburbs. Realistically, South Africa can expect more of the same in 2020 with house price inflation ending in positive territory but just barely above 0%. Some of the plus sides to this trend is a more communal living set up as well as shared costs for property maintenance, it is a win-win scenario if you find the right agents, and the right people to purchase the property with. KZN’s Queensburgh sees ongoing demand for properties under R1m as families look to upsize, Retire in the Cape Winelands's Zevenwacht Lifestyle Estate for less than R1m, Sophisticated living in wrapped in luxury, 2020 Vision: Outlook and trends in SA's residential 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. 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. 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. Preliminary Deeds Office data from the March FNB Property Barometer shows that transaction volumes in the residential property market declined by … Activity in the freehold market has strengthened in 2019, with 101 sales, the highest since 2016. A verification email is on its way to you. 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. This is one of the reasons property owners are switching to sustainable energy sources (apart from avoiding the impacts of load-shedding) and using mechanisms that improve efficiency in the home. With a reduced value of the rand, we could attract a significant increase in the number of visitors which would help build entrepreneurial attractions, accommodation and other opportunities within the tourism industry. This is the reason we are seeing more and more self-sustaining home solutions in the property market of today. Supply is slowing in response to weak demand, with fewer new houses and sellers keeping or removing homes from the market. Trend #1 – Environmental considerations and eco-developments These devices are not only for practicality, but they also carry snapshots of significant elements of our lives, such as our photos, contacts, calendars, and much more, but that’s not where it ends. December 9, 2020 admin Covid Property, Foreign Buyers, Property Prices, SADC Property Market While South Africa’s housing market continues its post-Covid lockdown bounce-back, driven by the low interest rate and favourable mortgage lending According to Lightstone, median prices of both freehold and sectional title properties in this region continued to strengthen in 2019 while activity remains relatively buoyant – which is expected to continue in 2020. For the best browsing experience, update to the latest Version of Internet Explorer or try out Google Chrome or Mozilla Firefox. Please note that you are using an outdated version of Internet Explorer which is not compatible with some elements of the site. The FNB forecast is for a 2020 annual contraction of -8%. One of the factors we believe could prove a boost for South Africa’s economy and ultimately even provide positives for the property market is tourism. Everywhere you look, people are walking around with a Smartphone, tablet, or laptop in hand. Before we begin analysing what to expect in 2020 property trends, it’s prudent to reflect upon the South African property market as it stands at the end of 2019. 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. Vacant Land / Plot for sale in Britannia Bay, Apartment / Flat for sale in Florida Lake, Vacant Land / Plot for sale in Fisherhaven. Forecast for 2020 FNB property economist Siphamandla Mkwanazi, has said that there has been a slight positive shift in the market during 2019. SA's property prices will take a big hit from the coronavirus crisis - and high-end homes will be worst affected. In Cape Town, the rise of entrepreneurs and digital start-ups is also benefiting different areas. Whether you’re buying, selling or renting a property in SA, it is important for you to keep up to date with the latest trends on the property market. The recent introduction of micro-units in Cape Town CBD and surrounds is also a response to strong demand from first-time buyers who want a lock-up-and-go lifestyle and to enjoy downtown living. 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. Many of these villages are highly digitized but are powered through alternative energy sources and have a strong focus on reducing waste and recycling. 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. 2020 property trends will build on everything we’ve seen during this year, and while there won’t be many surprised faces around our table, there are some interesting things to expect in the new year, and the coming decade. 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. 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. If you are using Internet Explorer 8 or higher, please verify that your Internet Explorer compatibility view settings are not enabled. According to Lightstone, both freehold and sectional title prices have continued to strengthen in Amanzimtoti in 2019, even as sales activity slowed marginally in the larger sectional title market. 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. This increase in total spend online represents an increase of 22% year-on-year since 2016, or an extra R8 billion. 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. Residential Real Estate Market in South Africa - Growth, Trends, and Forecast (2020-2025) The Residential Real Estate Market in South Africa is segmented by Type (Condominiums, Villas, and Other Types), Key Cities, and Other Urban, Suburban, and Rural Markets. This corner stand in. The improvement of infrastructure such as MyCiTi also increases the appeal of outlying areas, such as along the Western Seaboard. Tel. So it is quite possible that home owners who have recently bought houses with 100% mortgage bonds will by now experience negative equity (the market value of the house is lower than the outstanding mortgage bond), says Erwin Rode, MD of Rode & Associations, one of South Africa… Keep in mind that these trends are based on observations, so they aren’t foolproof for every buyer or seller. The key is to understand each trend in relation to your unique situation. 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