In the past two years it has been opined that due to the economic slump caused by the Covid-19 pandemic worldwide, the property market will also not be spared in seeing lower sales. While that cannot be denied in some quarters, there have been significant sales encountered in some areas in the South African property market. Of course, this is a classic case of going against the grain as any other market was expected to experience lower sales that those actually realised.
A favourable lending environment helped to encourage sales, with fluctuations in interest rates hitting an all-time low at some point, seeing some property buyers taking advantage of the situation.
When buying assets, we all want value for money. In the property market, this pursuit is quite established and one that stands first and foremost. Studying the trends of property transactions and sales, one can easily pick up why some markets experience better and higher worth sales than others. Factors of security/safety, amenities, scenery and others make every penny worth it.
According to recent data from Lightstone, Midstream Estate in Midrand, Bryanston near Sandton and Table View in the Western Cape accounted for the bulk of property transactions in 2021, with analysts predicting that the trend will likely continue. According to the CEO of Betterbond, Carl Cotzee, there was a 2.65% year-on-year increase in home loan registrations for March.
Lightstone reports that the value of property transfers for 2021 hit an all-time high of R326 billion, with Midstream being the top performer with 798 transactions. Sales in the same estate were over R2 billion in 2021, according to Just Property Midstream. Property24 Data reported that the average asking price for Midstream was around R4.55 million, while for ERF properties it was about R2.65 million.
Bryanston was also a top performer, and according to Carl Coetzee some properties have been converted from office blocks to residential properties. It has expansive properties (family homes) and sectional title units. The average asking price was R3.47 million while for ERF was R3.8 million.
Table View in the Western Cape recorded significant sales as well, making it one of the most sought-after markets. The area is also preferred for investment and retirement, with Table Mountain, nice beaches and other natural sceneries making it a preferred tourist destination. The average asking price is R2.1 million while R2 million was the average for ERF in 2021.
While property sales in these and some other areas are on the increase, using a bond originator has never been so advisable, especially with predictions of interest rates going up right through to 2024. It saves home buyers time and money in the process. We specialise in bond origination and bridging finance. We assist home buyers to find mortgage bonds that have favourable terms.
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