Real estate trends 2021 and beyond
Category Market Update
As we continue living with the Covid Pandemic, it is opportune to highlight some of the emerging real estate trends which have come as a result of Covid. Sales data shows that buying patterns have changed as has what buyers consider as important in terms of where they want to live and the features that they are now looking for.
Some of these trends include:
Home ownership is a priority for South Africans. When the interest rate came down there was a rally by first-time buyers especially, which is a sharp contrast to the decline initially predicted by analysts. While the market has cooled slightly, well-priced property remains in demand.
House prices have held steady. Analysts also predicted that house prices would slump by 10% to 20%. This has not been the case in Kirstenhof/Tokai Hamlet in spite of economic stressors due to Covid.
Historically low interest rate. The interest rate remains a major factor in boosting the market. Analysts believe that the rate should stay at the historically low level at least into next year. Any potential increase is likely to be small and with no dampening effect on the market anticipated.
WFH and lifestyle needs. The need to work from home has resulted in buyers looking for more space and homes with good fibre internet connection. Buyers also want easy access to amenities and outdoor areas for recreation such as walks, jogs, cycling and so on. The Kirstenhof Greenbelt is an always popular feature of the suburb.
Suburban versus inner city. A key trend has been the move from congested areas to the suburbs for more space and better surroundings resulting in higher demand for houses, especially with garden space. This bodes well for the Southern Suburbs/Constantiaberg area which offers a great choice.
Semigration and service delivery. Service delivery and the desire for a better lifestyle has led to a resurgence in semigration to Cape Town with buyers even prepared to pay the higher prices in the city compared to what they could pay elsewhere in the country.
Proptech and digital marketing. The pandemic has accelerated the shift to digital and social media marketing for real estate. Digital makes it easier for buyers to access more information and visuals so that, by the time of a physical viewing, they should be close to a decision. Digital communication such as this newsletter has become a valuable tool for buyers, sellers, tenants and landlords to stay up to date with the latest trends in the market.
That said, while the market remains active, using an experienced agent will ensure you get the best advice and assistance. For the best results, a Sole Mandate is key.
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Author: Gina Meintjes
