Young buyers and renters to help drive momentum

THE YEAR exposed some encouraging trends that bode well for future growth, says Pam Golding Properties’ Richard Day.

“A generation of younger, aspirant homebuyers and renters will help drive market momentum. We are also seeing the emergence of a new urbanism, with a focus on mixed-use developments – many of which are in the CBD – that offer a desirable livework-play lifestyle.

“Many of these developments include green features, or they are within green precincts, cementing South Africa’s position as a global leader in green building trends.” Other trends included:

The sectional title market continued to outperform other segments as people opt to downscale sooner for lifestyle and not financial reasons. Correctly priced properties sold. Demand for homes in good areas and with access to transport and other amenities remained high across all sectors and price bands.

However, among the notable key market stats, says Seeff’s Samuel Seeff, there is now pressure on the primary housing market, and especially on the secondary holiday and investment market.

“While, as always, the midmarket remains the most active and upper-end buyers can better absorb economic fluctuations, we are also seeing the slow-down affected in the luxury sector with the R3 million to R5m-plus range slowing.

“In the super-luxury sector, such as the Atlantic seaboard, the R18m-plus sector has slowed notably as have the R20m-plus sales, although this sector remained on par year-on-year with 2016.”

Knight Frank managing director Susan Turner is buoyant about the luxury housing sector in Cape Town though, saying annual growth of 14.5% year-on-year to September and limited new supply opportunities are helping to support prices.

“Strong interest from up-country and abroad continues to bolster the market for quality homes,” she says.