3 Vital Factors to know about South Africa’s property market in 2019

There are hopeful sentiments about the performance of the housing market in 2019, according to a local property expert.

“Despite negative aspects affecting economic growth such as petrol price increase, recent increase in VAT and the improbability of interest rate cuts.

Consumers are facing a tough economic climate but hopes of a bright future are prevalent in the property market,’’ he noted.

An investment analyst explained that younger demographics value owning property. “The market is buoyant and active because of the younger demographics. Some banks are also playing a pivotal role as they are providing bonds,” he added.

  • Building Costs

Statistics SA revealed that KwaZulu-Natal has the most expansive construction costs in South Africa. While the North West as the cheapest.

Construction costs in KwaZulu-Natal are R9,610 per square metre and average building costs in the North West amount to R5,060 per square metre.

Limpopo is the second most affordable province, at R5,270 per square while Mpumalanga is ranked third at R5,690 per square metre.

Gauteng is the second most expansive province at R7,870 per square metre followed by the Western Cape at R7,020 per square metre.

The province with the largest amount of building plans approved per total square meterage for the period January to July 2018 was the Western Cape. Gauteng ranked second while KwaZulu-Natal third.

Costs of renovating properties vary but, in most cases, it will be substantially lower than the per m2 costs described.

  • Key investment areas

FNB’s estate agent survey revealed that the Gauteng residential market is very stable and strong.

Growth in residential property prices in Kwazulu-Natal and Gauteng have slowly rebounded. The East Rand has shown the strongest recovery in the metropolitan areas of Gauteng.

Pretoria homes sell in just over 11 weeks in comparisons to the national average of approximately 16 weeks. Pretoria is the fastest growing South African metro economy.

According to Global Metro Monitor, Pretoria is ranked 35th on a list of 300 of the world’s biggest metro areas.

Pretoria surpassed Cape Town and Johannesburg with a 7.6% growth in employment and strong GDP per capital growth. Across all price ranges in Pretoria and Johannesburg, the market is experiencing an upward trend in sales.

  • A rise in sectional title living

A Fitzanne Estates property agent explained that, the Gauteng province is experiencing a demand for more sectional title units.

“Sectional title units are developed with convenience in mind. Many sectional title units provide several amenities. They are normally positioned for hassle free commute to hospitals, shopping centres schools and sports clubs.”

Locations such as Fourways, Centurion and Midrand are sought-after because they are properly priced and are an excellent property investment opportunity.

He concluded by sharing a few words of advice, “If you are refurbishing or letting out your property. Make sure you deal with an experienced, professional, reputable property management company.”