This has been a key driver behind the shift in housing in South Africa from freehold suburban homes to mixed-use precincts and developments, and the rise of shared, third spaces.This is underlined by the strong demand for more affordable homes in CBDs around the country, with a large percentage of young buyers in Johannesburg, Durban, With a growing number of young people looking for accommodation and with people of all ages and incomes showing an increasing preference for smaller, more conveniently located homes – and with the existing stock of homes predominantly freehold suburban houses, there is plenty of reason for ongoing developments.While the overall number of new buildings may have slowed, growth nodes continue to experience demand and developers are responding in areas such as Pretoria, the KwaZulu-Natal North Coast, Major investments announced during the SA Investment Conference include R6.5 billion by Rio Tinto in The Dube TradePort Special Economic Zone (SEZ) recently received the coveted 2019 UN Investment Promotions Award for performing exceedingly well in promoting sustainable investment in KZN and South Africa, particularly facilitating the investment of R1.3 billion by Mara Phones. While there has been no "significant increase in new stock volumes", under-resourced spec buyers are finding it far more difficult to operate. R 2 500 000
The prospects for the South African commercial property sector for 2020 remain stagnant, according to a new report by John Loos, Property Sector Strategist at FNB.
For example, on a bond of, say, R1 000 000, your repayment amount will have dropped from R9 650 at the beginning of January to R7 904 after the rate cut on 21 May 2020.As for home buyers, they will have less difficulty qualifying for a home loan at the lower prime rate, and will receive more favourable interest rates on their loan.In addition to the interest rate cuts, other reasons to be optimistic about the market include:This is all good news for landlords, as millennials form a ready-made market for While the luxury housing market continues to experience price deflation, the affordable housing market is doing a brisk trade.
Macro-economic and political landscape uncertainty suggests that a cautious outlook for South African commercial real estate is likely to persist into 2020. This one bedroom apartment in The Garden Route continues to attract semigrants from around SA.
R 1 295 000
This apartment in Durban is also on the radar with billions being invested in inner-city rejuvenation projects. This may be a result of If any of the predictions above have made you more optimistic about the South African property market, to the point you might want to take the opportunity to invest or pursue your dream home; bear in mind that ooba Home Loans offer a range of tools that make the process easier.
R 250 000
SOUTH AFRICA’S HOUSING MARKET FORECAST.
With a reduced value of the rand, we could attract a significant increase in the number of visitors which would help build entrepreneurial attractions, accommodation and other opportunities within the tourism industry.In KwaZulu-Natal, the introduction of direct flights between London and Introduced this month (December 2019), and with a flight time of just 14.5 hours, the new direct flight between New York in the USA and Tourism is recovering after the drought and aided by an easing of visa restrictions and piloting of an electronic visa application system coupled with increasing numbers of direct flights, will bring more money, translating into economic growth and jobs, and more prospective buyers to the country.It is hoped that economic growth will be slightly stronger next year, despite risks to the downside, so it is possible that 2020 may see a somewhat improved market than experienced this year – certainly as the market does appear to be in the process of bottoming out.
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This corner stand in Close to tertiary institutions, business premises and great amenities, these apartments in Joburg’s Braamfontein, Maboneng, Melville, Newtown and Auckland Park are ideal for students and young professionals.
Following another year of tepid economic growth, and with the latest round of load shedding further dampening the economy and expected to result in a Moody’s downgrade early next year, where does that leave South Africa’s residential property market?With household finances under pressure for the foreseeable future, the focus is likely to remain on affordability, value-for-money and cost saving – for example transport and utilities – for the bulk of the market, says Dr While there will still be pockets of activity and price growth, the performance of the national housing market is likely to remain subdued.Yet despite the knock-on effect of the drastic load shedding measures, there remain a number of positive factors underpinning the housing market, namely the demographic dividend of a young population – including first-time buyers - fuelling property purchases and rentals, relatively low interest rates, affordability returning as prices correct, and a strong appetite for lending from increasingly competitive financial institutions – with ooba’s loan to value rising to 88.4% in October which is the highest level since the data series began in 2007.However, this will not translate into a meaningful recovery until economic growth and sentiment strengthens, and there is an improvement in incomes and employment opportunities.One of the factors we believe could prove a boost for South Africa’s economy and ultimately even provide positives for the property market is tourism.
2020 Vision: Outlook and trends in SA's residential property market: While there will be pockets of activity and price growth, South Africa's housing market is likely to remain subdued.