Property market improves, but still largely buyers who control the market
Category Market Update
Despite the economic and policy challenges, it is expected that the property market should improve this year, albeit slowly while it remains vulnerable to the broader economic and policy environment.
After a period of adjustment in terms of volumes and prices, FNB for example views the market as having stabilised and generally poised for growth this year. The bank forecasts an improved house price outlook with a growth forecast of 3.7%, considerably better than the expected economic growth rate. The interest rate and progressive mortgage lending will also support the market.
Semigration demand for Cape Town is also likely to pick up pace again this year. Aside from the lifestyle attraction, the news that the City is moving ahead with its own power production and supply will no doubt further boost demand for property.
That said, it is not likely to be boom time quite yet as the slow market will continue to hold up the sale of properties of many potential buyers.
The good news is that the Southern Suburbs housing marketing has remained steady and Seeff enjoyed a successful year despite the challenges. We expect that the good location, choice of property and proximity to top schools and amenities will continue drawing buyers looking for suitable property.
Outlook for buyers
By now, buyers should be well versed about the favourable market conditions but should also note that prices are not coming down further and there's no reason to wait. Aside from the good stock to choose form, the flat price growth of the last two year means you will find better value than what would otherwise have been the case. Prices have remained flat and it's an opportune time to buy. If you find a suitable property, put in an offer and we take it from there.
The Southern Suburbs are regarded as a residential belt that offers excellent investment returns and looking back to the pre-2017 growth periods, the area enjoyed significant capital value growth, thus a strong case for buyers who may still be hesitant not to wait too long.
Outlook for sellers
While we expect an improvement in demand for property and the average price growth outlook is up from last year, the muted economic growth outlook is likely to keep asking prices under pressure. Bear in mind that buyers now control the sale and that they will be looking for a level of negotiability.
Remain open to offers and bear in mind that if you sell now, you can also take advantage of the good buying opportunities in the market. Remember, as a skilled area agent, I will facilitate the best possible deal for you.
Generally, whether you are buying or selling, it's best to be upfront with your needs so that the agent can ensure that no time is wasted.
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Author: Gina Meintjes
