THE YEAR AHEAD

Myles Wakefield, CEO of Wakefields Real Estate, puts 2018 under a microscope, and gives his opinion on how he sees the property landscape unfold this year

"I firmly believe that 2018 is our turning point, not only for Kwazulu Natal, but for the entire country, and in particular, the property market. I forsee it as our best year of the last four or five.

"Of course, given the complexities of, in particular, the SA economic and political landscape, but the global one too, there will always be a small print disclaimer to any prediction. We're certainly in a better position today than we were a year ago, and that bodes well. My belief in the upswing of 2018 has to be in large part, predicated on the back of a new ANC leader who looks to be walking the talk. His business acumen is sorely needed, and markets worldwide have responded to the promise of a leader who knows what's needed, and looks set to start implementing it. As much as we'd like it to, drastic changes won't happen overnight, but we're seeing a start made, and that's very positive for every South African. 

"Rising confidence is not simply prompted by our local scenario. We've been lagging behind a strong world economy, and if we can put a stop to our relentless run of own goals, we can take advantage of what could be called the 'lucky' global hand we've been dealt.  

"The condition of the rand is always very telling, and a clear indicator of the state of the nation. When it's strong, it's positive for property. The rand is currently reflecting the increased confidence being felt locally and globally, that the new ANC leader will begin repairing the damage. 

"Rising confidence among property buyers, sellers and investors, is a key driver of the market. Add to that, positives such as the decrease in the petrol price, the promising whisper of a drop in interest rates, and confidence is further boosted. If the banks ease up on their stringent lending conditions this year, that move will act as a stimulant for the lower end of the market, and if stock levels subside at the higher end, we'll see growth. 

"In Kwazulu-Natal, we envisage a number of positives. There are numerous residential developments being brought to market, and they're definitely not limited to upmarket suburbs and luxury estates - there are many in affordable locations and suburbs across the province. 

The global swing to more compact homes, with shared facilities and, most importantly, pooled expenses, will continue this year. In keeping with world trends, developers and architects are collaborating on creative designs for denser urban living developments, and in some instances, this brings that much-needed affordability to those entering the property market for the first time.     
For all of us, it's uplifting to see the KZN landscape filled with cranes, piles of bricks and hoardings. Clearly, developer appetite is alive and well, and for those planning on buying their first homes, retirees downsizing, or families looking for additional space, the new developments will offer a whole host of fresh possibilities and lifestyles. 

We can't expect prices to go up overnight. It takes time for that to happen. We need volumes of sales to pick up, and when there's less stock available, it's inevitable that prices will then rise. Serious sellers need to be realistic about their pricing, and buyers need to ascertain that they can afford to buy, how much they can afford, and ideally, have saved a minimum of a 10 percent deposit.  

I look forward to 2018. We've had some rocky years, and like all trends, it looks like it may well be time for the curve to swing upwards.