Estate Living Magazine Invest SA - Issue 41 May 2019 | Page 34

D E V E L O P M E N T
&
I N V E S T M E N T
SANTAM
MARKET LEADER IN
PROPERTY DEVELOPMENT
INSURANCE IN ANY
ECONOMY
In a constrained economy like that of South Africa, the possibility of new construction projects is limited. This, along
with the rapidly increasing cost of living as a result of the increasing cost of fuel, the inflation rate, and the VAT hike
of 2018, has put pressure on consumer spending. That’s the bad news. Here’s the good news.
Despite this, some property industry experts forecast a higher
growth in 2019 than we had in 2018. They indicate that we are in a
buyers’ market, which may continue through most of 2019. This is
great for property developers looking to meet the needs of those
entering the lower end of the property markets, with affordability
considerations making sectional title properties the preferred entry
point for first-time and cost-conscious buyers. Most of the property
sales activity in the past year has been reported to be in the R300,000
to R1.5 million range.
Sacrificing space for price is on the rise, hence the continuing
shift from freehold to sectional title and estate living. Developers
have been responding to the growing demand for sectional title
properties in what appears to be a longer-term trend. As we see new
hope for the real estate industry, property developers need to be fit
and ready to embrace this new burst of activity and market trends.
Another trend is the continued rise in mixed-use developments, and
the emergence of mixed-use suburbs. Mixed-use developments,