The Big Five Players' Opinions on South African Property Market in 2019's First Quarter.
Highlights from attached article link below,
Market activity appeared to have picked up a little (more sellers were also willing to drop their asking price to secure a deal). Richard Gray, CEO of Harcourts, said they expect consumers to remain under pressure due to rising costs.
Seeff said consumers have less money to spend on property while facing growing budget constraints due to rising costs as well as weak income growth. “This naturally translates to a somewhat muted property market which, while active below R1.5 million (R3 million in the upper income areas), continues to put pressure on sellers and asking prices.
Downscaling due to life stage remained the dominant reason behind property sales (emigration-motivated sales were also on the increase). Gray agreed that downscaling due to life stage is a major factor in the real estate market.
Recovery of the property market is dependent on the country’s economy improving (which property experts expect will happen but it will take time).
Property experts generally agree that the property market currently favours property investors and first-time home buyers. However, there is also uncertainty among investors due to ongoing political unrest and concern over the recovery of the country’s economy with the power utility Eskom still in dire straits. It is expected that the market will only start to pick up once the dust has settled after the general election on 8 May.
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