11 things that will impact South Africa’s property market this year

·11 Feb 2024

Most estate agents believe that 2024 will be a better year for the property market, with political and economic certainty helping to boost sales.

Estate agents surveyed by Lightstone at the end of 2023 said that they only achieved 40% of their volume or value sales targets in the year.

Despite South Africa facing major challenges in 2024 that could influence sales, such as the high repo rate, the general election and the upcoming budget, many estate agents were optimistic for the residential market in 2024.

73% of agents felt they would hit volume targets in 2024, while 72% said that they would hit value targets. This is nearly double what agents achieved in 2023 for both figures.

Although economic and political uncertainty in South Africa were the main concerns seen by estate agents, global political and economic uncertainty came next, even if tensions in other parts of the world could help South Africa.

Other factors that are hurting sentiment include high unemployment, load shedding, water-shedding and uncertainty around land expropriation.

Although not weighted as highly, positive factors included rising foreign interest, a growing number of young buyers and the recovery in the tourism sector.

Market recovery

Most agents said that economic uncertainty will have the biggest impact on residential property sales improving, while political uncertainty and a drop in the unemployment rate completed the top three.

46% of agents also said that rising interest rates will impact sales negatively, while another 41% said that there will be no impact.

“The repo rate was not adjusted in late January, but further adjustments, upwards or downwards, should be anticipated if circumstances require,” Lightstone said.

“On the positive side, while rising interest rates may put off some homebuyers, more than 50% of Estate Agents think it will push house rentals up and increase demand in the buy-to-let market.”