Some glimmers of light in property market

For the large majority of South Africans, it may feel like the storm clouds are settled but for those looking at property for sale in Midrand, there are some glimmers of light that offer hope of a brighter future.

After entering a technical recession, where the economy suffered negative growth over a period of two consecutive quarters, the outlook in general has taken a negative slant. Adding fuel to the fire is the ever-rising oil price, while the Rand has also been weakened over the course of recent months.

This all leads to the dismal outlook at present, but experts in the property market say that it might not be as bad as you think when it comes to property. They have backed this up by pointing to the Gauteng and KwaZulu-Natal markets, which have actually rebounded slightly since the middle of 2017.

The current state of affairs is not expected to change for the rest of 2018, while growth next year is not expected to be drastic either, and this means it could take some time before the housing market enjoys a major boost. However, Dr Andrew Golding, the chief executive at the Pam Golding Property Group, was happy to point out that youngsters are eager to break into the property market at present, and the financial sector is still extending mortgages.

Even though conditions are tough, he says that location is still a deciding factor when it comes to performance in many areas. “There will still be areas that continue to outperform – areas that are fulfilling a particular demand. Examples which come to mind are suburbs which offer an alternative to congestion, a flourishing business hub and easy access to good schools, for example Claremont in Cape Town or Durban North and Umhlanga in KwaZulu-Natal. Or areas which offer access to good schools and work, but better value-for-money property,” he said.