Trends Forecast for SA Property Market 2019
In 2018, South Africa saw some big shifts in the real estate market.
But what does 2019 hold in store? At PropertyFox, we have put together a list of things to expect in the coming year.
The Sharing Economy
The trend of either buying to Airbnb or chipping in with friends to get on the property ladder will continue. We can also expect a sharp increase in tourists and investment property buyers heading towards the Western Cape over the holiday seasons.
The Caring Economy
Living costs are on the rise. Many parents have helped their children make their first purchase as a result. That could be by paying a deposit or taking out a home loan on their behalf.
Ecologically Friendly Housing
Consumers are always looking at ways to cut down on costs where they can, especially when it comes to water and electricity in households. According to PropertyFox’s Chief Operations Officer, Nardee Cotterell, “we certainly saw homeowners investing more in this regard in the past 12 months, purchasing and investing in properties which have boreholes and rainwater tanks. Again, we expect this to continue in 2019.”
The increasing petrol prices and all-round living costs have added to the trend of sellers looking to down-scale in 2018. We expect to see sellers looking for something smaller or closer to work and schools in a bid to further cut costs.
Living costs are on the rise. Many parents have helped their children make their first purchase as a result.
Estate Living for Security
With the increasing demand of safety and security, there has been a growing popularity in security estates. Prices for these kinds of property have been on the rise. These types of developments are booming in Gauteng, but Cape Town’s supply is still below the demand.
At the start of 2018, the semigration trend slowed down due to the water crisis. Dam levels have started to recover, though. As a result, we expect to see the number of Johannesburg and even Durban families moving south start to rise once again in the early months of 2019. Families planning to semigrate will be looking to purchase homes within the catchment areas of their preferred schools.
In the residential space, the trend of people wanting to live closer to their place of work and major public transport facilities like the Gautrain will mean rentals and properties for sale in the business hubs and surrounds will continue to be popular options.
The Rise of Prop-Tech
Majority of buyers already start searching for their new home online, and we are anticipating that number to continue growing throughout 2019. Technology that allows sellers and buyers to save time and save money will increase. We anticipate more and more consumers will turn to nimble online real estate agencies for the efficiency of the process and the attractive fees.
Another trend to look out for is working from home. Working remotely eliminates the need to live close to the city centre. Buyers often find more value for money the further away from a CBD they go.
At PropertyFox, we use tech to deliver an accurate valuation to clients through a sophisticated valuation algorithm. This has resulted in our properties selling about four times faster than the industry average because they are priced correctly. Contact us today and we will take it from there.