This is the best time to buy property in South Africa
Seeff says it is currently a great time to buy property, as interest rates are expected to fall further in 2025.
With the interest rate being cut by 50 basis points and the economy set to improve into 2025, Samuel Seeff, chairman of the Seeff Property Group believes that now is the best time to buy property.
He said that the property market outlook for 2025 is positive, with more interest rate cuts in the early part of the year expected as inflation stays below the Reserve Bank’s midpoint target of 4.5% (October’s print was 2.8%).
The industry expects sales volumes to pick up, and prices to start rising.
“We have now had two years of flat trading and rising stock levels in many inland areas, especially those outside of the Western Cape. These areas sit with fairly high stock levels, and have experienced low to no price growth over the last few years,” said Seeff.
“Prices in many instances are similar to what they were two years ago which means buyers can potentially get a good deal in the market. The lower interest rate has made home loans more affordable, and property more attainable, making it a good time to buy.”
Buyers who wait until further interest rate cuts may risk having to purchase at higher prices, with the property market expected to rerate in 2025, which could see house prices rise faster.
The chairman expects two scenarios to unfold.
Firstly, areas with no or subdued growth amid sluggish sales volumes and are sitting with high stock levels will start to see an increase in sales volumes.
As properties start selling quicker and there are fewer homes on the market, prices will start rising in those struggling areas as buyers compete to get their hands on the property.
In this scenario, buyers who wait may end up having to pay higher prices.
Second,y areas that have seen reasonably good sales volumes and price growth, such as the Western Cape, may start to see even higher price growth of anything up to 15% to 20% next year.
In this scenario, Seeff said that it makes sense to buy before the market tempo picks up further.
“We can now see that the market has bottomed out, and is set to take the next upswing. Current market conditions enable buyers to purchase property at a low value given the flat price growth, especially in the inland areas, but also the Eastern Cape and parts of KZN.”
“Property is a long-term investment and an excellent wealth creator. The ability to buy at the bottom of the property cycle means you start on a good footing, and can potentially benefit from long-term financial gains once the market recovers, and property values rise again.”
“There is good value to be had across most price bands, although Seeff says given that the sub-R1.5 million price bands tend to pick up first, entry-level property buyers should get into the market while prices are still flat.”
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