{"id":784315,"date":"2024-07-28T15:00:00","date_gmt":"2024-07-28T13:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=784315"},"modified":"2024-07-29T08:12:43","modified_gmt":"2024-07-29T06:12:43","slug":"3-suburbs-flying-under-the-radar-in-south-africa-primed-for-rate-cuts","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/784315\/3-suburbs-flying-under-the-radar-in-south-africa-primed-for-rate-cuts\/","title":{"rendered":"3 suburbs flying under the radar in South Africa &#8211; primed for rate cuts"},"content":{"rendered":"\n<p>Northern suburbs in Johannesburg are showing excellent value for money, with potential interest rate cuts set to boost the market. <\/p>\n\n\n\n<p>Despite South Africa&#8217;s 15-year high interest rates, Landsdowne Property Group said that northern Johannesburg suburbs, including Bryanston, Sunninghill, and Paulshof, offer good value for savvy investors.<\/p>\n\n\n\n<p>\u201cProperty prices in Johannesburg are sitting at levels last seen 14 years ago, and we believe now is a good time to buy property in the metro. Courageous investors who take a long-term view will be rewarded when the market turns,&#8221; said Jonathan Kohler, Founder and CEO of Landsdowne.<\/p>\n\n\n\n<p>Kohler said one-bedroom and one-bath apartments in Johannesburg North offer excellent net rental yields of 10.27%.<\/p>\n\n\n\n<p>A two-bedroom, two-bathroom apartment in Johannesburg priced at R1.2 million and rented for R9,750 per month would offer a net rental yield of 7.36%.<\/p>\n\n\n\n<p>With its central location to Sandton and Randburg CBDS and other areas with excellent schools, medical facilities, shops, and entertainment facilities, Bryanston is a sought-after location to buy property.<\/p>\n\n\n\n<p>It offers entry-level apartments to luxury family homes and residences. <\/p>\n\n\n\n<p>Bryanston emerged as one of the top 10 locations for people owning multi-properties and was one of the top-selling suburbs in the country in 2023.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"wbfSUYPbja\"><a href=\"https:\/\/businesstech.co.za\/news\/property\/765129\/these-are-the-five-suburbs-rich-south-africans-want-to-live-in\/\">These are the 5 suburbs rich South Africans want to live in<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;These are the 5 suburbs rich South Africans want to live in&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/property\/765129\/these-are-the-five-suburbs-rich-south-africans-want-to-live-in\/embed\/#?secret=rmNeA5iNMe#?secret=wbfSUYPbja\" data-secret=\"wbfSUYPbja\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>Paulshof and Sunninghill are also well-located, close to amenities and schools, and offer buyers a wider range of properties.<\/p>\n\n\n\n<p>A one-bedroom apartment in Paulshof can be found for R730,000, making it an ideal location for buy-to-let investment properties.<\/p>\n\n\n\n<p>Kohler said higher-for-longer interest rates, high inflation, and rising living costs costs are putting pressure on affordability to buy or rent property.<\/p>\n\n\n\n<p>The South African Reserve Bank (SARB) started hiking interest rates in November 2021, and since May 2023, the bank has held steady at 8.25%, following a cumulative 475 basis points increase.<\/p>\n\n\n\n<p>Market consensus shows that the SARB will likely cut interest rates in September.<\/p>\n\n\n\n<p>This marked a shift in expectations, where many were expecting the cuts to start later. <\/p>\n\n\n\n<p>Bank of America brought forward its expectations at the start of the interest rate-cutting cycle from January 2025 to September 2024. This came after two of the six members of the Monetary Policy Committee (MPC) called for a 25 basis point hike in its July meeting. <\/p>\n\n\n\n<p>With inflation expected to hit 4.5% in Q4 2024, the rand stronger following the formation of the Government of National Unity (GNU), and the US Federal Reserve expected to start cutting rates in September as well, South Africans may be in for 100 basis points worth of cuts by March 2025.  <\/p>\n\n\n\n<p>However, BofA admitted that the SARB may be cautious amid concerns about the pace of cuts globally and the potential impact on the rand. <\/p>\n\n\n\n<p>\u201cA rate cut would benefit struggling consumers and stimulate activity in the residential property market,\u201d&nbsp;said Kohler.<\/p>\n\n\n\n<p>He said that the group recorded a decline in deals, sales and rentals in the last months. <\/p>\n\n\n\n<p>&#8220;More people want to buy or rent property, but their credit records are tainted,&#8221; he added.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read<\/strong>: <a href=\"https:\/\/businesstech.co.za\/news\/lifestyle\/783735\/10-european-countries-south-africans-can-buy-their-way-into-starting-at-r3-5-million\/\">10 European countries South Africans can buy their way into \u2013 starting at R3.5 million<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Jonathan Kohler, Founder and CEO of Landsdowne Property Group, says an interest rate cut will bring much needed relief to the property market. <\/p>\n","protected":false},"author":95,"featured_media":784322,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12755],"tags":[26,20291],"class_list":["post-784315","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","tag-headline","tag-landsdowne-property-group"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/784315","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=784315"}],"version-history":[{"count":9,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/784315\/revisions"}],"predecessor-version":[{"id":784611,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/784315\/revisions\/784611"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/784322"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=784315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=784315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=784315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}