The local property market is experiencing varying levels of demand as consumers battle against rising interest rates, ongoing loadshedding issues, and pressured affordability levels. Markets that attract cash buyers remain in steady demand while other markets have begun to shift towards a buyer’s market.
How to navigate through the market
Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, explains that – for those who can afford it – now is a great time to enter the property market. “Depending on the province, the scales of demand and supply are slowly starting to tip towards buyers’ favour,” says Goslett.
Speaking into a province where demand is still high, Kevin Jacobs, Broker/Owner of RE/MAX Premier, explains that “the Southern Suburbs and South Peninsula of Cape Town continue to experience high demand for properties. Correctly priced properties are selling within a matter of weeks and, in some cases, days of being listed. While demand from local buyers has stabilised, there has been an increase in demand from up-country and foreign buyers,” he explains.
“Our stats show that currently, around 50% of buyers are cash buyers, with the other 50% split between those subject to the sale of a property and those seeking bond finance. Those whose offers are subject to the sale of a property up-country have been negatively impacted by market conditions in those areas. These properties tend to take longer to sell and are being sold at less than originally anticipated by prospective buyers in our area. Nonetheless, very few sales are falling through due to this, and buyer enquiries remain high,” says Jacobs.
Speaking about the market conditions up-country, Nadia Aucamp, Broker/Manager of RE/MAX All Stars, explains that there has been a shift in demand following the recent interest rate hikes.