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. The rise of new growth nodes – with retail and companies relocating to smaller nodes such as Claremont, Westlake and Somerset West/Stellenbosch becoming major growth hubs in their own right as it is possible to live in these areas without commuting to Cape Town. Everywhere you look, people are walking around with a Smartphone, tablet, or laptop in hand. In Cape Town, the rise of entrepreneurs and digital start-ups is also benefiting different areas. 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. 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… Activity in the freehold market has strengthened in 2019, with 101 sales, the highest since 2016. People are moving over to solar-powered homes, making use of gas, rainwater harvesting systems and even growing their own organic veggies in the garden. SA's property prices will take a big hit from the coronavirus crisis - and high-end homes will be worst affected. 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 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. There is also evidence of new residential units becoming available in mixed-use precincts and buildings in CBDs across South Africa (such as Jewel City in Johannesburg). Some of SA's priciest properties have already seen steep price cuts. 2020 Vision: Outlook and trends in SA's residential property market 18 Dec 2019 Following another year of tepid economic growth, and with the latest round of load shedding further dampening the economy and expected to result in a Moody’s downgrade early next year, where does that leave South Africa’s residential property market? 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. 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. 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. Climate change is one of the hot topics on the lips of many people these days. We are especially seeing this trend in the property investment 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. 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. Please contact our Property24 Support Team for further assistance. Real estate across the globe is an intersectional market. 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? The forecasts we provide are aimed at guiding our customers’ strategies as well as their investment and purchasing choices. There is strong demand for more affordable homes in CBDs around the country. 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. Buyers tend to look for such features, in order to boost the value of their property and to improve their living conditions. Seeff takes a look at the top five trends that could influence property buyers’ decisions this year. The improvement of infrastructure such as MyCiTi also increases the appeal of outlying areas, such as along the Western Seaboard. Meantime the deterioration of affordability in the sought after suburbs close to the mountain continues to benefit areas further afield such as Northern Suburbs and the Western Seaboard. 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. 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. The KZN North coast area is highly sought after among home buyers and there are currently nine new developments listed in uMhlanga (Source: Property24), including 503 homes – 457 being apartments and 46 freehold homes. 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. 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 Keep in mind that these trends are based on observations, so they aren’t foolproof for every buyer or seller. Macro-economic and political landscape uncertainty suggests that a cautious outlook for South African … This is likely to become a long-term trend which will gather momentum in the years ahead and we anticipate this will also become more widely adopted in lower income housing as there is a growing realisation that green homes can be more cost efficient to run. As the eco-friendly lifestyle trend is on the rise across the world, South Africans are paying special attention to minimalist and resourceful living. Some investors who hold an increasingly bearish view, see South Africa’s GDP declining by as much as 10% in 2020 as a result of the lockdown. The South African property market is no exception. +27 (0)861 111 724. “It is expected that South Africa’s residential property market will continue to maintain its resilience, reflecting the ongoing healthy appetite for property investment – … 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. Supply is slowing in response to weak demand, with fewer new houses and sellers keeping or removing homes from the market. Online shopping increased to 1.8% of total retail spend up, from 1.2% in 2016. 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. Position as the tourism capital of the world: South Africa is consistently included in the top holiday … This one bedroom apartment in, The Garden Route continues to attract semigrants from around SA. 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. South Africa’s house prices fell 1.22% adjusted for inflation during the year to Q1 2020 (a nominal house price rise of 2.79%, according to ABSA). 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. If you are using Internet Explorer 8 or higher, please verify that your Internet Explorer compatibility view settings are not enabled. Realistically, South Africa can expect more of the same in 2020 with house price inflation ending in positive territory but just barely above 0%. The sectional title property market has grown significantly in the past few years. This market was already taking strain before the pandemic, and one forecast estimates that luxury homes could lose almost 20% of their value this year. This trend will continue, with areas such as Cape Town’s Atlantic Seaboard and City Bowl set to benefit most from Cape Town’s longstanding reputation as a prime global city, while semigration to the Garden Route, KZN and Boland in the Western Cape is ongoing. Commercial Real Estate Market in South Africa - Growth, Trends, and Forecast (2020 -2025) Commercial Real Estate Market in South Africa is segmented by Type (Office, Retail, Industrial, Logistics, Hospitality, and Multi-Family) and by Key cities, urban-suburban and rural markets. 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