Real Estate Investor Magazine South Africa March 2016 | Page 23

are seeing is that homes are generally spending far
less time on the market than they did post-recession.
Properties in good locations are selling within two
weeks on average, whereas these same properties
would have sat on the market for months before
selling during 2010. This trend is expected to carry on
during this year with stock shortages still a reality in
some areas. Other factors that will have an influence
on the residential market will include potential hikes
in the fuel levy, along with personal tax.
Those who are unable to meet the necessary
affordability ratios in 2016 will be forced to stay
within the rental market a while longer. The rental
market has seen good growth during the past year,
with demand also outstripping supply, particularly
in areas around CBDs. Access to finance will have
a major impact on the demand for rental properties,
especially those that are well placed close to business
hubs and a wide range of amenities. Buy-to-let
investors should aim to grow their property portfolio
to benefit as much as possible from the growing rental
demand.
This year we will continue to see excellent
growth within the affordable housing sector, as
well as continued demand for homes within gated
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communities that offer security. Security in South
Africa is, and will continue to be a major factor that
influences buying decisions - one of the many reasons
why gated communities and estates will remain a
popular choice among homebuyers. Homes with
lower maintenance requirements will also continue
to be popular, mainly due to increased utility and
municipal costs, which are placing additional pressure
on consumers’ pockets.

“Security in South Africa
is, and will continue to be a
major factor that influences
buying decisions”
While there is any number of factors that could
influence the property market and its performance
during 2016, the residential market continues to hold
its own, despite challenging economic conditions.
Over the long term, property has proven to be a solidly
performing asset and should be a core component of
any investment portfolio. The crux is for buyers and
sellers to understand the market conditions in which
they are trading and tailor their buying and selling
decisions and behaviour accordingly.

RESOURCES
RE/MAX of Southern Africa
MARCH 2016 SA Real Estate Investor

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