FIVE THEMES OF THE 2017 PROPERTY MARKET
Category Residential Property News
When we rid ourselves of all the noise and the dust settles on 2017, what stands out as dominant themes on our property landscape?
At Wakefields, we looked back over the year that was, and found that five elements of the property market stood out.
1. INTEREST RATES – it was all pretty good news this year, as interest rates not only held steady, but even eased slightly. That gave South African property owners across all sectors and income groups some welcome respite from the onslaught of other rising costs and debt. For the smart homeowner, it provided space and time to attend to debt other than a home loan, and to take the time to get their houses in order.
2. FIRST TIME BUYERS – there was a strong, steady demand from first time home buyers, with over 50 percent of all home loan applications to bond originator ooba emanating from that sector of the market. In October, 64 percent of Wakefields’ sales throughout KZN, were to first time buyers. These figures are a clear indication that more and more lower-income South Africans are in a position to buy a home for the first time, and that is a really good, progressive sign for the country.
3. DENSIFICATION – there were clear signs this year that this global trend is a permanent feature in urban South Africa. Sectional title apartments are increasingly more compact, mixed use is the norm rather than the exception, closer living is creating communities which are connecting and supporting each other. Urban densification may have been driven because of more people, less land and space, but the upshot of it all is that South Africans are reaping the advantages of shared costs and responsibilities – whether it allows for increased facilities such as on site playgrounds, schools, swimming pools, communal transport systems, and so on, or simply a reduction in living and utility expenses.
4. DEVELOPMENT – no matter where you turn, the skyline is decorated with cranes, and the landscape with construction vehicles. In Durban, head north and you’ll find commercial, retail and residential construction. Hammarsdale is dotted with towering new industrial buildings; residential areas like Pinetown, Westville, Hillcrest and more have small and big residential developments popping up. Infrastructure too, is on the rise, and whether the chicken or the egg came first, the end result is massive roadscapes creating easy, fast access to growing suburbs, commercial and retail developments. KZN is on the move.
5. RESILIENCE – our property market is as resilient as our people. Resilience is the hallmark of South Africans, that’s for certain. And no matter what’s happening around us, it’s clear the property market is not easily shocked. The fundamentals of property will always rule, and supply and demand is alive and well, confirmed by the sizable pockets of our KZN market which have done better than in previous years. South Africans are buying, selling and investing.
South Africa is where they want to be, and they’re making sure they have a stake in what is undoubtedly, one of the most extraordinarily beautiful countries in the world, with a lifestyle to match.
Author: Anne Schauffer
