Six emerging real estate trends for 2020 and beyond
After a decade of unprecedented change in the property world, one of the frontrunners of property disruption in South Africa predicts a continued evolution in the 2020s.
PropertyFox, the digital-first property company predicts kitchens declining in importance in the home as the ‘order in’ culture continues to boom. Also, a shift in ownership structures with private companies buying up or building entire neighbourhoods and playing long-term landlord.
Crispin Inglis, CEO of PropertyFox, says, “We have reached the end of a decade filled with property industry disruption. We saw homes sold online for the first time, with low commissions shaking up traditional notions of how property should be bought and sold. We saw property valuations calculation by algorithm and large listing portals replace traditional advertising.
Why ‘aparthotels’ are growing in popularity among SA investors
South Africa’s hotel development market, and specifically Cape Town’s, is showing astounding buoyancy despite a tough economy and the after-effects of the drought. Innovative ways of accommodating corporate and leisure travellers, such as ‘aparthotels’ or serviced apartment-style hotels, are quickly gaining momentum.
Recent figures highlight that five-star hotel occupancy in Cape Town, where many aparthotel operators are located, has increased by 4% over the last year, while the average daily rate (ADR, the average realised room rental per day) has grown by 2.6%. The four-star sector’s occupancy, despite new hotel entrants, has also increased, by 1.6% and with a 2.2% increase in ADR.
“Cape Town’s tourism resilience and attractive rate of return are making property buyers move to other, non-traditional options of buying property, like buying an apartment in a hotel property and then leasing it back to the hotel and enjoying a good monthly return that mirrors the uptick of local tourism,” says Wayne Troughton, managing director of HTI Consulting, a development consultant for the hospitality sector across Africa and the Middle East.
Twenty compelling reasons why you should buy property in 2020
As we greet another year, many South Africans will be thinking about their New Year’s resolutions - and buying a home or an investment property would be a hugely worthwhile endeavour, especially in a market that offers so much choice and value for money.
“While you only need one reason to buy your own home and that is to provide future security, we will enter 2020 with one of the best property buyer’s markets in years and the reasons to buy are compelling,” says Samuel Seeff, chairman of the Seeff Property Group.
Here are twenty reasons to make 2020 the year to buy property:
1. Most areas are still overstocked, so there are plenty of excellent buys in the market.
2. It’s a buyer’s market, so you can negotiate strongly.
Essential factors to consider when buying an investment property
When buying an investment property, you should apply the same “rules” about location, condition and security as when buying a home for yourself.
That’s the word from Berry Everitt, CEO of the Chas Everitt International property group, who says that volatile equity markets, relatively low interest rates and banks eager to lend on residential property have spurred an increase in buy-to-let purchases this year, in spite of slow rental growth rates.
“An oversupply of new units in many popular areas and negotiable prices are also drawing investors back into the market, but they do need to remember that while price is important, cheap is very seldom best. The area in which a property is situated, its overall condition and security considerations are all equally important when acquiring a home to let,” says Everitt.