Data analytics group Lightstone has published its latest residential property index, showing the current state of South Africa’s housing market and the growth of the country’s coastal towns.
National house price inflation as at the end of August 2020 remains stable at 2.1%, the group said.
“Despite the general slowdown at provincial level The Eastern Cape, Kwazulu-Natal and Mpumalanga province have been growing at increasing rates over the past year to an extent that they now lead the provincial growth with rates currently above 5% per annum,” Lightstone said.
It said that that the country’s coastal towns are also typically seeing better returns than the inland market.
“Among our major municipalities the coastal municipalities are generally performing better than those inland and this relationship extends to all coastal and inland properties as shown by their respective indices,” the group said.
“The low and mid-value segments continue to buck the market trend by growing at more than 4% annually while the high and luxury segments are inflating at rates below 2%.”
A number of South African real estate companies have reported an increase in semigration activity as more South Africans look to move from their inland homes in Gauteng and the Western Cape to more coastal areas.
Relocating to a warmer coastal clime or a more relaxed environment may be more than a pipe dream for some, having been pushed to the top of the priority list for a number of people who’ve made lifestyle decisions during the confines of the Covid-lockdown to effect a lasting change for the better, said Pam Golding Properties.
Due to its value for money, it said it has seen increasing semigration into KZN – both from other areas in the province and other inland provinces.
Lew Geffen Sotheby’s International Realty also pointed to an increase in semigration to the Garden Route in the Eastern Cape.
Steven Neufeld, manager principal at the group’s Plettenberg Bay office, said that the revival of the semigration trend post-lockdown will further bolster the Garden Route market.
“This coastal region has become very popular with buyers from Gauteng and Cape Town especially, and their ongoing interest continues to strengthen the market so although property prices have not risen exponentially, property prices are well above national averages even though affordability is relatively low,” he said.
The low and mid value segments continue to buck the market trend by growing at more than 4% annually while the high and luxury segments are inflating at rates below 2%, Lightstone said.
Property Inflation: Value Bands