2024 PROPERTY MARKET SHIFT

by Taryn Davies Stevens • 2 MIN • 289 Words

The South African property sector is poised for a notable shift in 2024, signalling a transition from a buyers’ market to one favouring sellers. This positive trend is underscored by various key indicators. Notably, the recent decision by the Reserve Bank’s Monetary Policy Committee to maintain interest rates unchanged for the fourth consecutive time hints at a potential decrease in interest rates later in the year. Such a move is expected to stimulate property transactions significantly.

Despite a 29% decline in the market on average in 2023, insights from the Lightstone Report reveal that 38% of all transactions involved first-time buyers, indicating a growing interest in homeownership. Economic indicators further support this optimistic outlook. While the Reserve Bank remains cautious, inflation appears to be moderating, mirroring trends in global markets like the US and Europe. This suggests a possible end to the upward phase of the global interest rate cycle, potentially leading to a decrease in local interest rates.

Though political and economic uncertainties continue to impact market stability, it is anticipated that these concerns will ease post-election. Additionally, improvements in infrastructure, service delivery, and the reduction of load shedding are expected to positively influence the market sentiment. Johannesburg, in particular, is experiencing a resurgence in investor confidence, with buyers actively seeking opportunities in anticipation of market strengthening.

In 2024, there is a notable demand for environmentally friendly homes, driven by factors such as the availability and cost of utilities like electricity and water. Properties equipped with alternative energy solutions like solar panels and water-saving systems are expected to attract buyers, alongside those offering robust security features, which remain a top priority for prospective buyers according to Lightstone.

For more information, contact INTRO REAL ESTATE, it’s the right choice.

PROPERTYMARKETSELLERS' MARKETBUY'INTEREST RATE2024

• S H A R E •