Coastal vs domestic home prices and other South African property trends right now!

 

Data Analytics group Lightstone released its latest data on the property market in South Africa, highlighting the state of the housing market in the country and the costs of home buying.

The figures reveal that at the end of February 2021, annual house price inflation was 4 percent, a further positive increase from the previous month. qatar properties

"This optimism is clear at the provincial level and in the various value ranges other than the low-value segment," said the group.

"The low value markets have seen lower demand due to historically low interest rates, which allowed both immediate participation in the new homeowners' higher value market and a convenient upgrade for low-value homeowners."

The data show among major municipalities that coastal municipalities generally perform better than inland municipalities.

This relationship extends further to all land and coastal properties. Pam Golding real estate agents said coastal purchases are likely to have a trend because of lower interest rates, which made it easier for young South Africans to enter the ladder.

The group added that semigrating South Africans from other parts of the country have also increased.

"Our first buyers include locals from Cape Town, including locals from the Townships, and buyers from Eastern Cape, Gauteng and some from Johannesburg," said Emarie Campbell, head of the Western Seaboard area of Pam Golding Property.

"They want affordable houses – preferably less than R2 million and consisting of independent, three-bedroom, two-bedroom homes with an open garage for children and animals, which have a direct access to the house and the garden and is close to MyCiTi bus stops, government and private schools, exercise facilities, shopping centres, churches and hospitals."

The table gives a long-term view of the annual inflation rates in different geographical regions

Looking at the types of properties sold, the data show that freehold properties now outweigh sectional properties which are now below their annual level of inflation.

In times of lower average residential property market prices, sales volumes traditionally rose higher.

Conversely, sales volumes almost always decreased as average prices rose, says Rowan Alexander, head of the estate agency Alexander Swart Properties.

This pattern has been evident year after year in recent times. In 2016 sales in Cape Town, for example, were signed at an average R1.572.000 sectional title (ST), and in 2018, 3.573 sales were achieved at an average R1.795.000.

However, the correlation suddenly no longer appeared valid in 2020 between the lower price and higher sales: despite the average price of just R1,420,000 at that time, only 3,008 ST sales were made.