The current South African property market is a buyer’s market but there is still some hope for people looking to sell. Picture: Freepik
The current property market is very much a buyer’s market, and the longer property owners wait for interest rates to start coming down, the more favorable conditions become for buyers, according to Samuel Seeff, chairman of Seeff Property Group.
Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, agrees with Seeff that the current property market is skewed towards buyers, although there are some exceptions.
“We are experiencing more of a buyer’s market in most parts of the country, but there are some areas, such as the Western Cape, that are better described as being a seller’s market,” Goslett said.
Property prices have remained flat, with FNB putting the annual average price growth for 2023 at just 1.5%. For 2024, it has dropped to below 1% and is unlikely to pick up this year.
It is a great time to buy, provided you are financially able to do so, as property prices are unlikely to get cheaper.
Buyers can currently find prices very similar to those of the last two years, with some exceptions where prices are still growing due to higher demand. Sellers are more willing to negotiate, and depending on the price band, buyers could find excellent value in the current market.
Seeff encourages people to buy property now to capitalise on the favourable interest rates.
“If you are you are financially able to afford the monthly repayment at the current rate, then you stand to benefit once the rate comes down while your property will then benefit from the increase capital value growth,” Seeff said.
According to Seeff, interest rates has had a significant impact on the South African property market.
Seeff said the impact of the low interest rates drove up sales volumes, especially for first-time buyers who could afford to purchase their own homes.
“Now, we see the reverse where the higher than necessary interest rate has driven down sales volumes, and first time buyers are the hardest hit,” Seeff said.
However, all is not lost for people that want to put their properties on the market for sale.
Goslett said that sellers in buyer’s market who are realistic about their asking price will have no issues getting their property sold.
“With interest rates as high as they are, affordability is an issue for most buyers. Sellers who acknowledge this and price the home at fair market value typically do not have a problem finding a qualified buyer,” Goslett said.
IOL Property