Welcome 2024! What can we expect from the property market?
Category Market Update
After a challenging year for the economy and property market, we are cautiously optimistic for an improved outlook. Hopefully, the long awaited interest rate cuts will materialise as an added boost to the economy and property market.
While challenges remain, and it is an important election year which may feel the impact of political discourse, we are hopeful for a stable outcome. Either way, we largely expect it to remain "business as usual" for the Southern Suburbs housing market.
All things considered, 2023 was another good year for these areas, and we expect more of the same this year. Based on market trends over the last 10-15 years, popular neighbourhoods which offer access to good schools, and the UCT in the case of our areas, along with excellent amenities, will always see a level of demand.
That said, we remain mindful of the potential impact of various challenges on the economy, both local challenges such as inflation and the continued Eskom crisis as well as global factors, including the impact of the Eastern Europe and Middle East crises. Potential upsides and downsides to the market include:
Potential upsides for the property market
Interest rate cuts - this is highly anticipated and should provide an added boost.
Semigration and investment - these buyers will add further demand for property.
Cape Town governance - this is a favourable impact, and we expect this to remain the case.
Self-sustainability - ongoing drive to take homes off the grid with solar, etc.
Potential downsides for the property market
Economic uncertainty - local and global impacts may keep the economy under pressure.
Interest rate - while expected, rate cuts are not guaranteed and depend on economic factors.
2024 Election - the lead up to the election and outcome could cause some uncertainty.
Price appreciation - asking prices are likely to remain under pressure.
The Cape Town property market continues to stand out as the strongest in the country. While price growth has seen an inevitable slowdown, prices have nonetheless held firmly. Cape Town also enjoyed a record tourist season, and was just named by Time Out England as the second best city to live and visit out of a list of fifty top cities. Cape Town was specifically hailed for "its scenic beauty, multicultural communities and vibrant creative landscape", all proudly South African attributes.
Various factors count in Cape Town's favour. From excellent governance and infrastructure maintenance to top schools, amenities and an enviable coastal lifestyle. That said, market conditions are still largely weighted in favour of buyers and seller's asking prices remain under pressure. According to FNB, price growth averaged at just 1.5% last year. Seller's will therefore need to ensure they work with experienced real estate agents who can advise them on the best marketing tactics and a suitable asking price.
At Seeff, we open thousands of doors to new homes and property aspirations for our clients each year. 2023 was another excellent year for Seeff Southern Suburbs. There is currently a shortage of stock with well-maintained properties selling fast. If you are looking to sell, there is no need to wait, contact us now!
Author: Gina Meintjes
