Residential property transactions rates on the rise

 

The overall value of sales in the South African housing market is steadily increasing, from 2014 to 2015 an 8.3 increase in the value of residential property transactions was recorded.

Despite the gross domestic growth (GDP) not gaining momentum and remaining low. New vehicle sales are plunging while an increase upward interest rate cycle is evident.

About 50% of residential properties are in Gauteng and the Western Cape account for at least two thirds of the total residential market value.

The high value suburbs that experienced a strong capital growth last year include Sandton and Parktown in Johannesburg. La Lucia and Mount Edgecombe in eThekwini in KwaZulu-Natal, Green Point and Rondebosch in Cape Town.

Despite asset buying consumers decreasing, property investing is still a priority for most South Africans. The analytics director of Light stone, a provider of in depth information, valuations and market intelligence in the South African property sector noted this factor while addressing the latest gathering in the Overview of the SA Property Industry conference. The conference took place at Val del Estate outside Paarl in the Western Cape.