Data analytics group Lightstone has published new data on South Africa’s property market, highlighting the state of the country’s housing market and the cost of buying a home.
The data shows that national house price inflation was 2.1% at the end of July 2020. However, the low and mid-value housing segments have continued to buck the market trend by growing by more than 5% annually.
By comparison, the high and luxury segments are inflating at a lower rate below 2% per annum.
“Among our major municipalities the coastal municipalities are generally performing better than those inland and this relationship extends to all coastal and inland properties,” Lightstone said.
Despite the general slowdown at provincial level, the Eastern Cape, Kwazulu-Natal and Mpumalanga province have grown at increasing rates over the past year to an extent that they now lead provincially with rates above 5% per annum.
A number of 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.