Hobart was the darling of speculative property investors and the best performing property market in 2017- 8, and while dwelling values reached a record high in February 2020, its boom interrupted by Covid-19. “The efficiency and convenience that this technology offers, means that real estate will most likely continue operating a bit differently, even past COVID-19 concerns and restrictions,” he concludes. https://propertyprofessional.co.za/wp-content/uploads/2018/12/pp-menu-logo-new.png, https://propertyprofessional.co.za/wp-content/uploads/2020/12/forecast-on-property-trends-in-2021.jpg. “We expect to see continued strong demand in properties between R500k and R2m. According to our National Housing Report for Q3 2020, the median asking price of sectional titles reflected a 5% drop YoY and freehold homes reflected no growth but remained steady year-on-year. A Rode Q2 2020 report detailed some of the weakest year-on-year changes for the rental market since 2013. Dyer expects the "low level of demand will translate into continued slow or negative price growth in this segment of the market, with properties continuing to remain on the market for longer periods of time and with sellers being forced to drop their asking prices to move stock.”. "There is the possibility that there will be a slight increase of around 0.5 points for 2021, but this should not have a great impact on the property market. The improved affordability of homes, especially for first-time home buyers is directly linked to the South African Reserve Bank’s decision to dramatically drop the repo rate to it’s lowest level in almost 50 years. BetterBond’s application volumes were up 32% year-on-year in November and this strong activity is set to continue as the SARB’s forecast shows that the repo rate is likely to gradually increase towards the end of 2021. "Sales linked to emigrations have also dwindled as many people have put such plans on hold in the context of global uncertainty around the pandemic.". “We will see increasing numbers of properties which are seldom seen on the market, the likes of Mbombela Shoprite Centre in Nelspruit, Nzehelele Valley Shopping Centre in Makhado and the Boxer Superstore Shopping Centre in Ermelo.”, READ | Work from Home trend to thrash SA's office rental market. Consequently, even though they can see the market is quieting down, these factors will continue to drive market activity as people continue to up-or-downgrade as their daily needs change says Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty. This statistic shows the gross domestic product (GDP) in South Africa from 1984 to 2019, with a projection up until 2021. The unexpected property boom created by a rate-cutting spree by the South African Reserve Bank to aid the pandemic-hit economy raises the question about if and when a market slowdown will happen - with some predicting the slowdown will be inevitable. Self-Tan - All mass and Premium Products that either enhance natural tanning (tanning aids) or allow the skin to tan without developing exposure to the sun (sunless tanners). The downside is that interest rates might be increased as a counter-inflationary measure. Property choices will move to “more multi-generational living including in new developments, more creative retirement solutions for the 50-plus age upwards, high demand for security complexes and estates, school suburbs will continue in high demand and attract good prices, semigration for lifestyle and security reasons, suggests Seeff. The forecast shows a growth of 6.7% in 2021, compared to a 5.7% increase nationally — putting metro Atlanta in the 20 markets expected to experience the huge home price increases. Rising unemployment, end of stamp duty holiday and Brexit will affect market, says lender First published on Mon 21 Dec 2020 07.46 EST House prices in … “As corporate South Africa starts focusing their attentions on profit targets and consolidating the losses of 2020, we will see more retrenchments coupled with the banks easing of the payment holidays and debt relief programs. SARB holds 50-year-low interest rate | Average bond values South Africans can afford right now. There’s a growing exodus away from cities, as working from home becomes a permanent fixture. Households Debt To Income in South Africa averaged 58.16 percent from 1969 until 2019, reaching an all time high of 86.40 percent in 2008 and a record low of 40.30 percent in 1980. Services. However, like the phoenix rising from the ashes, the residential property sector came alive in June as soon as the deeds office reopened, and real estate agents could again operate fully. Hobart Property Market Forecast. Please note that you are using an outdated version of Internet Explorer which is not compatible with some elements of the site. The Africa construction market is expected to register a CAGR of 6. MAIN IMAGE: Dr Andrew Golding, chief executive Pam Golding Property group; Siphamandla Mkhwanazi, FNB senior economist; Shaun Rademeyer, CEO Multinet; Tony Clarke, managing director Rawson Property Group. READ | Should you fix your interest rate, now at a historic 50-year low? Mortgage repayment holidays saved jobless workers from having to sell their homes, preventing major supply glut (which is what happened in 2008) says  Siphamandla Mkhwanazi, FNB senior economist. The Sunshine State is shining and strong demand for detached houses and outstanding demand for lifestyle areas are projected to deliver 6–10% capital growth in 2021 for the south-east Queensland property market. Industry experts share their insights into trends shaping the property market outlook for the new year ahead. “With borrowing costs low, the exit out of rentals will continue. Byron Carlock, PwC Partner and US Real Estate Practice Leader says, “Now, more than ever, the real estate industry has the chance to take the lead in using planning and development skills and investment capital to reshape our work and lifestyle environments. We strongly urge you to update to a. While this exodus to smaller towns was happening, private investors, listed funds and businesses were reducing debt by selling off non-core assets, and this trend will continue into the coming year.”, READ | 'Wave of distressed properties expected', sellers advised to price correctly. “This change in work environment has dramatically evolved the way home buyers evaluate prospective properties. Brisbane Property Market Forecast. The signs indicate that though perhaps at a more sedated pace, the residential property sector will see continued high activity. In the first quarter of 2020, the housing price index (HPI) ranked the Florida real estate market no. Going forward she predicts the ideal living space will be larger with plenty of room for everyone to have their own space as well as communal areas where everyone can get together. A PWC report highlights how the year ahead will be "a crucial moment" to showcase leadership and drive change. The South African Reserve Bank is expected to keep its repo rate at a record low 3.50% at its January 21 meeting, and for the rest of 2021, as the coronavirus pandemic rages. Chile and South Korea won’t be far behind—we expect them to catch up mid-2021.” - Ziad Daoud , chief emerging markets economist. ... Industry experts share insights into post-lockdown trends taking shape to drive this property market in 2021. Forecast updates. Until the economy recovers from the impact of the pandemic, Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa, predicts that house price appreciation will remain low for 2021 with a national average of roughly between 2-3% growth y/y, says. Click here for the full report. The gauntlet of responsibility is ours to embrace, and industry leaders see the opportunities and are responding with investment and leadership.. "It details key considerations like "exodus to the ‘burbs, Work from home changes office outlook, the essentials or safety and wellness, the need for social justice and racial equity, how and why stores will still matter, and the ongoing need for affordable housing -  all reflecting a similar pattern at home as local industry experts weigh in on the trends shaping the property industry in South Africa. This remains above a 3.3% average for the Sub-Saharan Africa … READ | Property rebound jackknife? Beyond that immediate need, however, Clarke says allowing buyers to tour a property virtually could become a major service differentiator moving forward. The momentum of the housing market activity is expected to lead to a “strong start in 2021”, said Zoopla. Buyers are now often around 34 and up - a trend supported by home loan application statistics. LeadHome's Du Toit says Post-pandemic lifestyle changes are shifting the property market. South Africa’s economy fell into recession in Q4 2019, when real GDP contracted by 1.4%, following a decline of 0.8% in Q3, according to Statistics South Africa.. Add to this, the accelerated trends like retail footprint reductions and the appeal of quality retail assets outside of big cities says Norman Raad, CEO of Broll Auctions. South African business property homeowners are actually providing potential property patrons virtually interest-free loans to complement their already Sunday, January 10, 2021 Home Likely, there may be a move to a hybrid offering that integrates real world with virtual technology. Yet how long can we expect this to continue in the reality of the country’s massive challenges in rebuilding its’ shattered economy amid fears of a second wave of the pandemic? Rademeyer agrees, "People who previously rented are now taking advantage of the lower interest rates. Investors are looking for properties that work for mass retailers and affordable industrial parks. In light of the fact that the record low interest rate will remain steady combined with factors such as the excellent value for money on offer and favourable lending environment, they expect a continued steady market recovery says Tony Clarke, managing director Rawson Property Group. READ | How to sweat your assets to make money during a shaky economy. The market is a 2 tiered one of inner city vs suburbs … However, in a continued tale of two realities typical of South Africa, those with the financial means will likely be in a position to make good investments by early to mid-2021. Dublin, Jan. 04, 2021 (GLOBE NEWSWIRE) -- The "South Africa Two Wheeler Market by Vehicle Type (Motorcycle, Scooter/Moped), by Engine Capacity (Up to … “We are typically seeing younger buyers now than we might have a year or two ago. The rental market is seeing a high level of vacancies right now as the financial impact of the Covid-19 on the average South African takes its toll - giving the tenant considerable power of choice. South African residential property prices are dropping when adjusted for inflation, a new FNB report shows. Mkhwanazi says they don’t expect a drastic increase, but rather a gradual rise – “in other words, interest rates are expected to remain low for longer. "Many people are upscaling, Leadhome data shows that buyers are looking at properties that previously they may not have been able to afford, with a visible shift in the number of enquiries on properties above R1.5million. Copyright © 2020 Property24 - All rights reserved. He continues that the spectre of further job losses and limited wage increases are likely to present an ongoing headwind to the housing market next year – suggesting a slower recovery than is expected. Here's where HNWIs are buying, Garden Route well-primed for buyers | What you can expect to pay in George, Knysna and Plett, 'Wave of distressed properties expected', sellers advised to price correctly, Big City Exodus | Remote workers spur latest property trend, KZN’s Queensburgh sees ongoing demand for properties under R1m as families look to upsize, Retire in the Cape Winelands's Zevenwacht Lifestyle Estate for less than R1m, Sophisticated living in wrapped in luxury, Emerging property trends for 2021 | Low interest rates will continue to drive the market. Golding also adds that home buyers across all age groups are also becoming increasingly conscious with aspects such as energy and water efficiency and sustainable use of materials at the top of the wish list. The market outperformed all previous years since 2013. In 2009, the Seeff Property Group for example experienced a decline in sales of 25% year-on-year. Rhys Dyer, CEO of ooba predicts the Property Market in 2021 will continue to be driven by first-time homebuyers (FTHBs). He says this could potentially further bolster the luxury market now that borders are open for international travel, although this growth will likely remain modest compared to the more affordable segments of the market. Cheaper borrowing costs are also enabling first-timers to buy bigger, more expensive properties than they might previously have considered.". Market news, auctions, leisure, estate agent industry, construction, professional opinions. Global Real Estate & Property Management Services Market Report 2020 by Key Players, Types, Applications, Countries, Market Size, Forecast to … READ | What tenants want? ", READ | From boomers to born-frees | How lockdown has influenced residential buying trends in SA. Providing an environment which is safe and secure at no additional cost, to a very price-sensitive tenant is the best thing a landlord can do right now, according to TPN Managing Director Michelle Dickens. Brisbane’s property values remained resilient over the last year, especially given the economic impact of COVID-19, and are now forecast to perform strongly in 2021. Dyer also expects that property activity will be in the price points that FTHB’s can afford, with a possible forecast of stock shortages that can be filled by new developments. © Copyright 2018, Property Professional All rights reserved. But no sector was left unscathed. The historically low-interest rate environment has subsequently created the opportunity for many South Africans to enter the property market for the first time, as it becomes cheaper to buy than rent. The latest FNB House Price Index (HPI) reports annual house price growth of just 2.6% y/y in October. COVID 19 is still a negative factor. What is the forecast for 2021? “We had a flood of buyers hitting the market in response to the interest rate announcements, across all regions and in all price bands,” says Clarke. House prices will not recover to pre-pandemic levels until 'at least' 2023 COVID-19 has accelerated change in the property industry, focusing sharply on safety, socio-economic disparity, and wellness amid a backdrop of global economic uncertainty. Goslett also predicts a struggling economy means lower house price growth. Rademeyer has found the "strain of lockdown has, unfortunately, put a strain on many relationships and this has resulted in more homes going on sale as a result of divorce and/or separation". This page provides - South Africa Housing Index- actual values, historical data, forecast, chart, statistics, economic calendar and news. From boomers to born-frees | How lockdown has influenced residential buying trends in SA, Property rebound jackknife? Additionally, for many people working from home will remain their ongoing reality. Demand for homes in Adelaide’s northern and southern suburbs could see property price growth of almost 7 per by 2021, a new market report claims. | Here's why most people are selling right now. Our prediction is that the Southern Africa property market will continue to see these high sales volumes in 2021 for as long as interest rates remain favourable and homeowners continue to adjust their lifestyles to suit the post-lockdown world.”. Property in Australia’s capital cities rose an average of 3% in 2020, while regional markets climbed 6.9% higher, according to CoreLogic. Industry. Millennials still appear cautious when it comes to buying properties to live in, but they are becoming more amenable to investment buys. While the move to live-streamed virtual auctions has been successful for Broll, with more Investors participating due to ease of use and the high convenience factor, it is not clear if this trend will continue to flourish across the industry. For real estate – as for many sectors and industries locally and abroad – the impact of COVID-19 has required a shift to the use of things like online consultations, virtual reality, digitised documentation, and more efficient, professional instant communication. The latest FNB House Price Index reports house price growth of just 2.6% y/y in October. If you are using Internet Explorer 8 or higher, please verify that your Internet Explorer compatibility view settings are not enabled. Housing Index in South Africa averaged 127.55 Index Points from 1966 until 2016, reaching an all time high of 544.47 Index Points in November of 2016 and a record low of 3.62 Index Points in January of 1966. In closing, then these remarks from Rademeyer: “We believe that 2021 will be a busy year for the real estate industry and the opportunity to proposer will continue for the agent / agencies that provide the best advice and service during these times”. “Commercial real estate will evolve along with prop-tech and change in ways including supply chain improvement which brings about better utilisation of commercial spaces, streamlined processes which add additional availability of both retail and commercial spaces and increasing demand for high-quality spaces in prime locations,” says Raad. Covid-19 merely made this recession deeper. The residential property market was stable and prices continued to rise before 2019. Add to this, more top-end lifestyle & golf estates will add apartments onto their offerings, with a move away from houses, says Andrew Amoils, Analyst for New World Wealth. Looking ahead, here is our forecast for South Africa's property landscape in the year to come... By Paul Stevens 6 Jan 2021. It also highlights the importance of understanding the trends in the national housing market when making decisions to sell or purchase a home. The Covid 19 shutdowns have impacted the rental housing market, yet prices have risen and look to rise further in the face of ongoing rental housing shortages, and a housing market that may cool. “Parkland and eco-estates with nice parks, birdlife, walks and trails will become more popular. To learn more about our latest five-year forecasts across mainstream and prime residential markets read the Autumn 2020 report here.. This is driving demand for larger homes, with three or more bedrooms, as opposed to the previously sought-after two-bedroom sectional title units. ... Industry experts share insights into post-lockdown trends taking shape to drive this property market in 2021. South Africa Housing Market: What the Experts Are Predicting In 2021 Posted on January 12, 2021 January 12, 2021 by Andy The SA property market forecast of experts shows mixed results as they see the country still navigating the after-effects of the pandemic. Dippenaar advises caution heading into 2021 when entering into the initial lease agreement should no fixed lease extension with an agreed rental increase be recorded, as courts have held that a term requiring a “good faith” negotiation on future rental is unenforceable, so exercise caution. With slow economic growth, continued low confidence in the country and with many South African’s in the higher LSM’s looking to externalise assets into a hard currency, there is likely to be continued low levels of demand in the upper end of the residential property market. Family members are returning to a communal home set-up to live together, resulting in monthly savings,” adds Rademeyer. 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