Emerging trends among property buyers and sellers

Lockdown restrictions may have eased, but life has still been altered by the effects of Covid-19.

A few months outside of level five and four have allowed real estate professionals the opportunity to spot the emerging trends among property buyers and sellers during this tumultuous time.

According to regional director and CEO of RE/MAX of Southern Africa Adrian Goslett, the property market has seen a boom over the last two months.

“Despite having had record sales months of R2.4-billion and R3.3-b in July and August, our total sales figure year-to-date for August is still down by nine per cent,” Goslett said.

“When broken down by region, the Free State and Northern Cape regions seem to be hit the hardest, with a 17 per cent drop in sales. Least affected areas are the central Gauteng region as well as KZN, both of which reflect a three per cent drop.”

For a more detailed picture of how the local property market is performing, RE/MAX SA sent out a survey to their network.

The majority of feedback received was that buyers are searching for a higher quality of life and are looking for homes with an at-home study space as well as an additional room or flatlet to allow for multi-generational living.

While some report higher levels of sellers who are downsizing owing to affordability issues, others report no such increases within their market.

Maurice Lodewick, broker/owner of RE/MAX Lifestyle Estates in Nelspruit, explained since the lockdown occurred, buyers in his area are requesting more space and a home that offers a higher quality of life.

“They want larger stands and some are still wanting small stands, but with views onto greenbelts or vast open space,” Lodewick said.

“There have also been more requests for studies, especially for studies that can accommodate more than one person. Beyond this, buyers are looking for outbuildings that can be converted to a school room or a flatlet to accommodate granny.

“In terms of our sellers, there has been a notable increase in those who are downsizing, with more than 50 per cent of homeowners in our area selling because of affordability issues.

“This is occurring most often within the higher-upper market, which is above R5-million. Sellers in this price segment are looking to downscale to a home worth around R2.5-m.”

Similarly, Deon de Swardt, broker/owner of RE/MAX Oaktree in Stellenbosch, said the price bracket above R5-m is very quiet.

“Buyers in this price bracket are deciding rather to negotiate a two-year lease instead of buying. I suppose this is owing to the uncertain times we are experiencing,” he explained.

Beyond this, de Swardt noted while in the past his office has dealt with a lot of buyers from Gauteng who are looking to relocate to the Boland region, this has dried up a bit among buyers within the R2.5-m price bracket and below.

“It is as if the Garden Route region has become more attractive to these buyers. I think it has a lot to do with the value for money these areas offer,” de Swardt added.

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