Sectional Title - One of the best property years as we head into a positive 2022
Category Market Update
Welcome to 2022! Our best wishes for a prosperous and healthy year to you and your loved ones!
The pandemic aside, we enter 2022 on a positive note for the property market, albeit remaining mindful that we are still operating in uncertain times.
We are delighted to report that 2021 was one of the best property years for the Southern Suburbs/Constantiaberg market. It was a year which demonstrated the resilience of the market which recovered to pre-pandemic levels with many areas reporting some of the best sales in over three years!
At a local level, the Southern Suburbs sectional title market has enjoyed some of the best sales over the last year with a notable improvement on early 2020 when the pandemic took effect and staging full recovery back to the pre-pandemic levels.
Sectional title property remains in high demand for a variety of reasons, from convenience in terms of a lock-up-and-go lifestyle to excellent demand for rental property. The outlook for this sector of the market remains positive.
Overall, in terms of the year ahead, Seeff remains upbeat despite the interest rate hiking cycle which has been in effect since late last year. The expectation is that the rate may climb by about 75bps this year. Even with that, it will still remain below the pre-pandemic level and will continue to serve as an inducement for buyers.
That said, sellers will need to continue focusing on market-related asking prices to achieve sales success. The Southern Suburbs remains one of the most in-demand areas and always in need of well-maintained properties to meet buyer demand. Aside from the convenient location, the access to excellent schools, UCT and amenities remain strong selling points for the area.
While we must remain mindful of the potential impact that the ongoing pandemic and weak economic growth outlook may have on the market as we progress this year, last year's performance again showed that Southern Suburbs property is an excellent investment.
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Author: Gina Meintjes
