south african property market forecast 2021

People’s priorities are changing, add Du Toit who says “many people are looking to upscale to a bigger property for more space and rooms. In 2009, the Seeff Property Group for example experienced a decline in sales of 25% year-on-year. In closing, then these remarks from Rademeyer: “We believe that 2021 will be a busy year for the real estate industry and the opportunity to proposer will continue for the agent / agencies that provide the best advice and service during these times”. Market news, auctions, leisure, estate agent industry, construction, professional opinions. BetterBond’s application volumes were up 32% year-on-year in November and this strong activity is set to continue as the SARB’s forecast shows that the repo rate is likely to gradually increase towards the end of 2021. Industry experts share their insights into trends shaping the property market outlook for the new year ahead. "Not only are live, interactive virtual tours a massive time-saver for buyers narrowing down their property search, they also make it dramatically easier to buy property from a distance when relocating or buying an investment property, for example," adds Rawson. COVID 19 is still a negative factor. Gardens and outdoor living spaces are also moving up on the wish lists. Providing an environment which is safe and secure at no additional cost, to a very price-sensitive tenant is the best thing a landlord can do right now, according to TPN Managing Director Michelle Dickens. No rate hikes expected until late 2021 and the market will remain driven by the low interest and favourable mortgage loan terms with first-time buyers moving from rentals and others moving to a better house or neighbourhood,” says Seeff. Sydney's 2021 property hotspots predicted Brisbane house prices at record highs The blocks alone are estimated to be worth around $700,000 … Do you want to know what it would be like to live it up in one of the most prestigious suburbs and estates in SA? People are also realising there is money to be saved by living together, "this explains why homes with granny flats or cottages are now especially popular. "Rental properties that are priced right and offer a sense of security were the two top priority across all rental price bands. Broll adds there is a trend towards alternative spaces, such as the medical industry adopting traditional retail spaces which offer easy accessibility. The forecast shows a growth of 6.7% in 2021, compared to a 5.7% increase nationally — putting metro Atlanta in the 20 markets expected to experience the huge home price increases. There is no doubt that the experience of being cooped up in an apartment with little or no access to outdoor space during lockdown has led many to reassess their requirements of a home. Most leases are currently being extended on a nominal or 'no increase' basis. However, in a continued tale of two realities typical of South Africa, those with the financial means will likely be in a position to make good investments by early to mid-2021. He pegs property hotspots for 2021 as the Cape, Garden Route and KZN Ballito/Zimbali area, and middle-class neighbourhoods for both sellers and landlords. Self-Tan (Suncare) Market in South Africa - Outlook to 2021: Market Size, Growth and Forecast Analytics is a broad level market review of Self-Tan market in South Africa. Housing Index in South Africa averaged 127.55 Index Points from 1966 until 2016, reaching an all time high of 544.47 Index Points in November of 2016 and a record low of 3.62 Index Points in January of 1966. Buyers are trying to get the highest bond amount possible from the banks while interest rates are low.". The market is a 2 tiered one of inner city vs suburbs … Dublin, Jan. 04, 2021 (GLOBE NEWSWIRE) -- The "South Africa Two Wheeler Market by Vehicle Type (Motorcycle, Scooter/Moped), by Engine Capacity (Up to … Seeff adds, “Airbnb rentals will remain under pressure until international tourism regains strength, expected only by mid-2021 onwards as most of our tourist markets are seeing a resurgence, hence the market will be driven by domestic bookings and limited international visitors. Investment Stages ... One of the major trends in our UK property market forecast 2021 was the effect of unemployment rates on property. Services. Until the economy recovers from the impact of the pandemic, Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa, predicts that house price appreciation will remain low for 2021 with a national average of roughly between 2-3% growth y/y, … However, this is not expected to last indefinitely – the SARB has already indicated an interest rate hike could be on the cards by the second half of 2021 which will affect affordability for first-timers. South Africa Housing Market: What the Experts Are Predicting In 2021 Posted on January 12, 2021 January 12, 2021 by Andy The SA property market forecast of experts shows mixed results as they see the country still navigating the after-effects of the pandemic. “We are typically seeing younger buyers now than we might have a year or two ago. One thing we learned in 2020 is that you can’t predict the future with complete certainty. Staff accommodation and houses with granny flats are also major selling points, especially for families with young children, as this allows a grandparent or a carer to live on the premises. There will also be a stronger development activity for new stock in these segments.”. South Africa's government officials are calling for stricter measures to curb soaring coronavirus infections that have topped one million. READ | Should you fix your interest rate, now at a historic 50-year low? The historically low-interest rate environment has subsequently created the opportunity for many South Africans to enter the property market for the first time, as it becomes cheaper to buy than rent. Christmas is also around the corner and many are only now truly beginning to feel the effects of a very tough economic situation.”. Financial pressure will keep the rental market under pressure with yields low and rental rates affordable,” says Seeff. SARB holds 50-year-low interest rate | Average bond values South Africans can afford right now. Commercial Real Estate Market in South Africa - Growth, Trends, and Forecast (2020 -2025) Commercial Real Estate Market in South Africa is segmented by Type (Office, Retail, Industrial, Logistics, Hospitality, and Multi-Family) and by Key cities, urban-suburban and rural markets. Also read: House price growth in double digits. But no sector was left unscathed. "Here in Cape Town rental amounts achieved are anything between 10% and 25% less than was achieved before 2018," he says. Rhys Dyer, CEO of ooba predicts the Property Market in 2021 will continue to be driven by first-time homebuyers (FTHBs). However, the 2.25% interest rate cut implemented by the South African Reserve Bank created nearly irresistible conditions for buyers in a position to qualify for property finance. The application of vaccines should reduce the incidence of the virus. In many ways, 2020 brought along a forced utilisation of virtual tools and technology across the real estate context. Follow the link in the email to complete the registration process. Covid-19 has hit all sectors of the South African economy - some harder than others - with all industries including Real Estate needing to adapt to the new normal across the globe. South African property market: A live forecast for 2020 Despite an economically tumultuous 2019, followed by pandemic-plagued 2020, home buyers have reason to be optimistic about a currently resurgent market. While overall real property prices declined, low-income and lower-to-middle-income properties showed above inflation growth. Until the economy recovers from the impact of the pandemic, Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa, predicts that house price appreciation will remain low for 2021 with a national average of roughly between 2-3% growth y/y, says. But in outlying areas, these assets, many of which have strong anchor tenants, remain strong, and Broll is seeing many buyers who are committed to bricks and mortar and feel safer in the sector. “This change in work environment has dramatically evolved the way home buyers evaluate prospective properties. While the property market is in a downward trend, Seeff says that it is by no means the worst market that he has seen in over 30-plus years in property, and it is nowhere near the lows of the 2008 Global Financial Crisis. “The buoyancy up to R3m (R6m-R8m in high suburbs) will sustain until late into 2021. The Covid 19 shutdowns have impacted the rental housing market, yet prices have risen and look to rise further in the face of ongoing rental housing shortages, and a housing market that may cool. “Parkland and eco-estates with nice parks, birdlife, walks and trails will become more popular. With economic recovery heavily dependent on a vaccine, the length of this downturn remains uncertain. Copyright © 2020 Property24 - All rights reserved. Add to this, more top-end lifestyle & golf estates will add apartments onto their offerings, with a move away from houses, says Andrew Amoils, Analyst for New World Wealth. While the move to live-streamed virtual auctions has been successful for Broll, with more Investors participating due to ease of use and the high convenience factor, it is not clear if this trend will continue to flourish across the industry. Family members are returning to a communal home set-up to live together, resulting in monthly savings,” adds Rademeyer. TPN Rental Data for Q3 of 2020 highlights the hardest-hit sectors with soaring vacancies are the properties at the low-end, rentals R25,000 pm contracted by fifty percent from 1.8% market share to 0.9% q-o-q spurred on by a 23% vacancy rate. “There is a long-term plan – buyers are looking sharply at rising utility costs and erratic service delivery. In light of the fact that the record low interest rate will remain steady combined with factors such as the excellent value for money on offer and favourable lending environment, they expect a continued steady market recovery says Tony Clarke, managing director Rawson Property Group. The ongoing demand for properties at these price points will likely result in some stock shortages during 2021 and will drive prices of second-hand properties in this segment. This serves as a supporting factor to the property market,” he ends. I believe 2021 could be the start of positive change in South Africa and a strong recovery of its economy. Keep up to date on the latest property news in South Africa. Dippenaar advises caution heading into 2021 when entering into the initial lease agreement should no fixed lease extension with an agreed rental increase be recorded, as courts have held that a term requiring a “good faith” negotiation on future rental is unenforceable, so exercise caution. The current buyer's market is seeing a recovery in housing prices, as SA's weak labour market and the uncertain economic outlook is still expected to impact the sector. Weather forecast, alerts and UVB index for all South African provinces, 13 January 2021 2021-01-13 Gary Player’s son leads anger at golfing great accepting Medal of Freedom He says this could potentially further bolster the luxury market now that borders are open for international travel, although this growth will likely remain modest compared to the more affordable segments of the market. Standard Bank reports that their approval rates for July increased from 54.19% to 55.89%. Households Debt in South Africa increased to 72.80 percent of gross income in 2019 from 71.90 percent in 2018. COVID-19 has accelerated change in the property industry, focusing sharply on safety, socio-economic disparity, and wellness amid a backdrop of global economic uncertainty. The latest FNB House Price Index (HPI) reports annual house price growth of just 2.6% y/y in October. The African construction industry is … January 7, 2021 admin Commercial property, Lightstone Statistics, Mall Owners, Property Data, Shopping Malls, South African Property Johannesburg, South Africa – January 2020: Over the past few years, there has been a noticeable trend of shoppers moving The political situation may also be a positive factor on the basis that there will be a significant clean up of the corruption that has been identified. The market outperformed all previous years since 2013. “Households are under considerable financial pressure, with the full economic impact of the lockdown and subsequent targeted lockdowns of late-2020 and in 2021 yet to be felt,” notes Dr Andrew Golding, chief executive of Pam Golding Property group. ... Top trends set to impact SA's commercial property market in 2021. Beyond that immediate need, however, Clarke says allowing buyers to tour a property virtually could become a major service differentiator moving forward. In the first quarter of 2020, the housing price index (HPI) ranked the Florida real estate market no. The unexpected property boom created by a rate-cutting spree by the South African Reserve Bank to aid the pandemic-hit economy raises the question about if and when a market slowdown will happen - with some predicting the slowdown will be inevitable. Real estate in 2021: good news as well as bad, Simplify estate agent qualifications for transformation, Rights of landlords and tenants in Covid times. Among the trends noted by Rademeyer since June are that some buyers are downsizing from larger homes, while others are looking for larger homes to accommodate the work-from-home trend. Covid-19 merely made this recession deeper. ... Forecast summary; Market outlook; Origin of GDP (% real change) = 2021 = 2022. Work from home: Lightstone has already reported an increase in home sales in coastal towns and on lifestyle estates as more people continue to work from home who are looking for more spacious homes in quieter family-friendly environments. Nedbank said it has revised its real GDP forecasts for 2020, 2021 and 2022 to -8.1%, 3% and 2.2% respectively – from -9%, 2.7% and 2.1% previously. According to Colliers, the average price for 3-bedroom luxury condominiums rose by more than 15% in 2018, to USD 4,371 per square meter. The rental market is seeing a high level of vacancies right now as the financial impact of the Covid-19 on the average South African takes its toll - giving the tenant considerable power of choice. Dyer expects the "low level of demand will translate into continued slow or negative price growth in this segment of the market, with properties continuing to remain on the market for longer periods of time and with sellers being forced to drop their asking prices to move stock.”. The US report details how the pandemic has accelerated many existing trends like "retail footprint reductions, while it spawned new ones such as an increased focus on social justice and health and wellness, and stopped others in their tracks like the appeal of big cities". Gdp growth update to the problematic issue of negotiating an extension of current leases agent industry, construction, opinions. A Rode Q2 2020 report detailed some of the lower interest rates there are going to be more. 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