What to expect from the property market in 2021?
Category Market Update
The second half of 2020 proved to be a very active period for the property market with Seeff Southern Suburbs achieving excellent results for the year.
Looking ahead into 2021, we kick off the year with strong fundamentals for the local market. That said, we are mindful that since the last newsletter, the country has gone back into Level 3 amid the second wave resurgence of the Covid Pandemic which does bring an element of uncertainty.
The upside for the market is that we enter the year with the news that the historically low prime rate of 7% which has been a big driver for the market, is here to stay for most of the year according to the latest news from the Reserve Bank.
The bank lending climate also remains favourable for the time being. The latest Oobarometer puts approval rates at just under 80% with 94% of bonds still granted within five days. Further good news is that the average deposit requirement dipped further to 8.9%.
Despite the activity last year, property stock levels remain well balanced and the market continues to favour buyers. While prices have held steady FNB does not foresee a rise in prices this year to any significant degree given the expected economic pressure as a result of Pandemic setback. That said, the market has shown that sellers who price accurately should be able to attract buyer interest and a good price.
We continue to see a high demand for full title houses as people look for a more space and inspiring surroundings while they are largely confined to their homes. Security and access to great schools remains high on the list of many buyers. The market below R5 million will likely remain most in demand while the high end of the price spectrum will, much like last year, remain under a degree of pressure.
Another important aspect that the market has shown is that working with a credible agent is vital in these challenging times. We expect the green surroundings, mountainside living, excellent schools and amenities and country lifestyle yet with big city benefits on the doorstep to continue attracting buyers and investors to the market.
The Deeds Office is open and operating and buyers are able to view properties. Seeff's agents are fully equipped with the necessary safety protocols and PPE to enable sellers and buyers to proceed with their property needs without delay.
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Author: Gina Meintjes
