Dr Golding says the tentative economic – and housing market – recovery which happened at the start of 2018 has gone through a temporary setback due to the increased tax burden and several petrol price hikes, together with increasing property rates and municipal tariffs such as electricity and water.
He says consumer confidence has been dented as household income has had to adapt to reduced disposable income. Despite this, interest rates are very low and banks are still competitive and still showing a desire for lending, so any setback is likely to prove temporary.
Dr Golding says what they are observing countrywide in relation to Pam Golding Properties’ sales, is that well-priced homes below approximately R2.5 million are selling well to a cross-section of buyers, including investors. “Nationally, however, the emphasis is on homes being pegged at realistic, market-related prices. Also in regard to our sales nationally, for the calendar year to date we have recorded a slight increase in unit sales, albeit reflecting more activity in the middle to lower price bands, with the luxury market still ticking over steadily,” he says.
Dr Golding adds that because affordability is an issue for many and keeping in mind the younger generation of aspirant home buyers, there is a guaranteed opportunity for developers in popular hubs and major centres to bring to market new, affordable stock especially in the price band below R1.5 million, and developers are responding to the growing demand for sectional title properties.
