Real Estate Investor Magazine South Africa February 2016 | Page 28

HOUSING

South African

Housing Market Predictions for 2016
Expect bumps in the road
BY DREW HOOK

The Real Estate Market of 2016

When it comes to the much bigger buy-to-own category,
SA is in a better position than many other countries due
to its youthful population, high rate of new household
formation and a steady increase in the number of people
entering the middle class, all of which serve to underpin
demand.
In short, the number of prospective property buyers
and tenants in SA’s formal housing sector continues to
rise somewhat, even when the economy is performing
badly. And for a number of reasons, the rate at which
new homes are being delivered to the market by housing
developers is still behind this demand, so there is every
reason to believe that the real estate market will hold its
own in 2016.
As Bill Rawson, chairman of the Bill Rawso