The South African property market remains remarkably resilient
Pam Golding - South Africa
Despite a local and global economic landscape characterised by unusually high levels of economic and political uncertainty, the South African property market remains remarkably resilient, according to the Winter 2016 issue of ‘The Study’, a report which incorporates the Pam Golding Residential Property Index.
Published by Pam Golding Properties Research, The Study provides insights into the dynamics of the residential property market.
The report says in part this resilience reflects pockets of strength in the national housing market, such as the booming Western Cape market, but it is also attributable to the structural underpinning of a young population and the growing influence of first-time buyers. As a result, property – both local and offshore - can provide an excellent investment opportunity during what can only be described as uncertain times.
Dr Andrew Golding, CE of the Pam Golding Property group, says the continued resilience of the South African housing market in 2016 has supported a better than expected market performance , given that it is occurring against a background of persistently weak economic growth and a slow, but steady increase in interest rates.
Property Barometer - House Price Indices by Segment
FNB - South Africa
The Sectional Title Housing Market Segment has been experiencing a relatively strong period in recent years, but this may be cooling off mildly.
South Africa’s mounting urban land and infrastructure scarcity has been key not only in a “drive” towards smaller average sized properties, but also towards a more significant portion of Sectional Title homes, as we look to utilize land and infrastructure more economically.
In an attempt to measure the progress of the Sectional Title Segment’s growth, we use deeds data transactions by individuals only (“Natural Persons”), which we believe should be a good proxy for residential transactions by individual households.
Here, we see the number of Sectional Title transactions having increased in significance since 2010 after a 2008/8 recession dip.
Property Barometer - Indices by Segment
Cape Town's Southern Suburbs sellers 'must acknowledge economic slump'
IolProperty - South Africa
For the first time in three to four years, agents in highly sought-after areas like Cape Town's Southern Suburbs are not reporting an across-the-board shortage of sale stock and buyers now have a greater choice of properties.
"While this can partly be attributed to the fact that some consumers are forced to downscale in these tougher times, the increase in the number of available homes for sale is also due to the fact that many sellers are holding out for their asking prices and houses are therefore on the market for longer," says Lew Geffen of Lew Geffen Sotheby's International Realty.
"And while many homes in the Southern Suburbs achieved asking price last year when a dearth of stock had buyers scrambling, it's a different scenario this year and sellers need to be realistic."
Down-scaling? Getting used to the smaller space
Harcourts - South Africa
According to the FNB estate agents survey for the second quarter of 2016 the largest category of sellers, 26%, are those selling in order to downscale due to life stage. The report states that this is due to the strong growth in the 50+ cohort’s numbers. The report further said that this form of down-scaling refers to those sellers who desire a smaller home, usually either because they are getting older or because their offspring have left home. However, there are other various factors that also influence why home owners decide to downscale - financial reasons, security factors, the desire to reduce your home's maintenance costs etc.
What many find difficult at first is becoming accustomed to the new smaller space. Going from a large family home in the suburbs to a two bedroom apartment overlooking the ocean might have its perks but can you get used to less room?
Here are a few fundamental tips to consider when down-scaling.