Despite South Africa being on the edge of stagflation, real estate continues to hold its value in South Africa.
Meridian Realty said that increased levels of inflation, high-interest rates, and stagnated economic growth can surprisingly be good for property owners as inflationary pressures that are carried on to new developments lift property prices.
“During periods of stagflation, building contractors will continue to expand their construction of homes to meet consumer demand. Stagflation does not decrease demand for homes; however, it causes supply to stagnate and reduces the affordability of completed houses,” said Antonie Goosen.
Taking this into account, properties located in high-demand nodes could see price hikes. South Africa’s widespread coastline has become a hotspot for the first time, and more established buyers have to relocate.
Semigration has been on an upward trend, with many property companies, specifically in the Western Cape and areas like Plettenberg Bay, reporting that people are leaving metros in droves as remote working becomes a norm and lifestyle priorities change post the pandemic.
Property analysis firm Lightstone noted that these areas are the most popular for semigrants:
- KwaZulu-Natal – Margate, Port Shepstone, and Ballito are the most popular destinations for those relocating from Gauteng.
- Eastern Cape – Port Alfred, St Francis Bay, and Kenton-on-sea are the most sought-after areas in the Eastern Cape.
- Western Cape – As the most popular province to semigrate to, holiday destinations across the Garden Route such as Plettenburg Bay, George and Hermanus have seen an uptick in semigration.
Here is what R10 million can get you in some of South Africa’s most sought-after beach towns:
5-bedroom house for sale in Umhlanga Ridge – R9,950,000
4-bedroom townhouse for sale in Zimbali Estate – R9,950,000
4-bedroom house for sale in Glenwood – R9,995,000
Kenton on Sea
6 bedroom house for sale in Kenton on Sea – R10,000,000
6 bedroom house for sale in Lovemore Park – R9,750,000
St Francis Bay
4 bedroom house for sale in St Francis Links – R9,750,000
6 bedroom house for sale in Poortjies – R10,200,000
3-bedroom house for sale in Pezula Private Estate – R9,900,000
4-bedroom house for sale in Fancourt – R9,950,000
5-bedroom house for sale in Hermanus Heights – R9,995,000
4-bedroom house for sale in Scarborough – R9,990,000