Property market trends and demands
Category Market Advice
Article Provided by Leanne Jooste, B Law Inc. Attorneys
In today's property market, there are various factors that are influencing property trends in South Africa, such as the interest rate hikes and the effects of the pandemic.
The prime interest rate in South Africa has been at a record low but the interest rate has already increased during the first part of 2022 and more interest rate hikes can possibly be expected.
Market trends and demands in the property market ultimately affect sellers, buyers, landlords, and tenants.
Remember there are also micro trends for each local suburb and province which is either similar to or completely opposite to the greater market trends.
Current rising demands in the property market:
- Spacious homes
- Homes in remote areas
- Gated communities/security living
- Off-the-grid living
- Entry-level and luxury homes
Market trends:
In the property industry, there are two ways to describe the condition of the property market, which is either a seller or buyer's market.
Seller's Market:
In a seller's market, there are fewer homes for sale which drives up the demand for property and enables sellers to push up their asking price for their properties. Buyers will therefore have to make competitive offers and act swiftly when buying properties.
Buyer's Market:
In a buyer's market, there is an abundance of similar homes for sale in an area. The vast choices for the purchasers drive down the demand for property and sellers have to bring down their asking price for their properties. Sellers, therefore, tend to hold onto the current property until market conditions change.
Timing the market
It's a difficult task to know exactly when to sell or buy a property. It's advisable to consult a property practitioner before making such a decision. A possible way of taking the advantage of the market trends is when a seller sells his property but then also buys a property at the same time. The seller will then benefit from either market, whether it's a buyer or seller's market.
De Lucia Group has been servicing the property industry for over 45 years. Contact us to ensure you get the best advice for all your property-related queries. Michael De Lucia - michaeldl@delucia.co.za
The information contained herein is not intended to constitute advice and shall only be relied upon by you at your own risk. De Lucia Group does not guarantee the accuracy or completeness of any information posted in this newsletter or otherwise. Any information relied upon by you should be independently verified for accuracy. De Lucia Group reserves the right to change the content distributed or published without prior notice.
Author: De Lucia Group
