The two faces of the current property market

The housing market in South Africa currently has two faces, but there is good news for those who are selling or looking at property for sale, as there has been a turn for the better.

Stuart Manning, who is the group CEO for Seeff Property Group, best described the current situation as a “hybrid” market. This is because at present there are some areas that are performing well, while others are still clawing their way out from a difficult spot.

On the tough side, the Cape metro is really feeling the impact of the poor economy as well as the drought and a drop in tourism. In the property market, this is showcased in the upper end of the market, where there is very little activity due to the tough trading conditions.

However, in Gauteng there was some very positive news. For the first time in many years, there was an increase in property transactions that exceeded R20 million, which is a significant sign. The higher end of the market is usually the first point of recovery, and because of the activity here, it shows that confidence is starting to return to the market.

There has also been more willingness from banks to grant home loan approvals, which has seen better activity in some lower to mid-market trading. There is a domino effect with this, as it means some areas have seen house prices rise, which also continues to build on the confidence.

Recent changes at government level in South Africa have brought about improved sentiment in the country, and although Manning says that there are still some tricky waters to navigate, the signs are there for positive progression.

Following the announcement of the unchanged repo rate, Manning believes that the interest rate will also remain flat for the rest of the year, and with stability in the market following the recent