After three months of record-breaking sales post hard lockdown it is clear that South Africa’s property market is on the rebound after the coronavirus lockdown, says property group Rawson.
Tony Clarke, managing director of the Rawson Property Group, says the real estate agency was hit very hard by the lockdown restrictions – particularly as a largely commission-based industry. Clarke says that all signs now point towards continued market recovery.
“The current surge in market activity is due to the combination of record-breaking low interest rates, excellent value for money on offer, and very motivated lenders offering up to 100% bonds to qualified buyers,” he said. ”
We don’t foresee those conditions changing for several months at least. In fact, interest rates will likely drop again as we head into the new year, and only start to rise very slowly late in 2021 – nothing dramatic enough to offset the currently favourable buying conditions.”
As market momentum continues, however, Clarke says property prices will begin to climb – a natural reaction to the increasing demand and decreasing oversupply.
“We’re also hoping to see improvements in the economic growth rate, which will boost income, affordability and consumer confidence,” he said.
“All of this will contribute to the already high demand for properties, particularly within the low to middle price ranges, and help support stronger price growth in the months to come.”
In the meantime, however, Clarke cautions sellers to remain pragmatic when it comes to pricing.
“Growth is on the horizon – the market is full steam ahead – but it’s important not to pre-empt pricing conditions. Buyers and tenants are well-informed and spoilt for choice. They’re not interested in properties that aren’t appropriately competitive.”