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Best Buyers’ market in over 35 years! 

  

If you are still wondering when the best time to buy is, this is it. As the real estate market emerges, moving out from the after-effects of 24 months of Covid, we also enter the best buyers’ market in over 35 years! 

 The recent increase in the prime lending rate has not diminished buyers’ interest. On the contrary, they continue to take good advantage of investing in the property market. 

While it is always difficult to predict how the market may play out in the coming months, it is especially favourable for the low to the mid-market range. This is from R1.5 million to R3 million, where we see the bulk of activity happening. There is still a flurry of sales that won’t abate for a while. It is almost cheaper to buy than rent in many low to mid-price areas, which is rare and makes it incredibly attractive for buyers.

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Sellers in the low to mid-price ranges should still be able to sell faster. Additionally, price growth in this sector is also likely to fare better than the higher price bands.

The upper price bands and super-luxury sector above R8 million are, expected to remain pretty muted, and sellers will need to price competitively. This sector of the market is a function of sentiment. Until sentiment, consumer confidence and the economy improve overall, buyers will likely remain selective.

However, the super-luxury sector currently offers the best opportunity for bargain hunting in 35 years, and everyone loves a bargain. The depreciation of the Rand means that high-end property is now about 20% to 30% cheaper for those paying in Dollars, Pounds or Euros. Prices are already down by about 20% since 2019. If you have foreign currency reserves, now’s the time. 

The rental market also seems busier than usual, with a great deal of movement, making it an excellent time for any investor to purchase a property.