#PropertyReport: Buoyant North Coast property market remains strong

As we are now comfortably into the second half of the year, and given the recent unrest events, it seems a good time to reflect on 2021 and see if our crystal ball can give us some insight as to what to expect for the last five months of the year.

Market predictions seem harder than usual as there have been no seasonal trends since the end of March 2020.

However you can still normally get a good handle on the next 3 months.

Looking back, the first 5 months of the year picked up exactly where last year ended which was extremely buoyant, with a high volume of people looking to buy in our area and a healthy appetite to buy.

Stock levels were healthy across the board with not too much to soften the market, but also not too little to not be able to feed that demand.

From June 2020 to June 2021 prices increased somewhere between 4-8% on average, depending on the product which is a very stable and sustainable increase which led to one of the most successful twelve month periods in the industry for some time – something that was experienced in many corners of the country and, in fact, around the world.

This, as we now know, was fueled by the fallout of the Covid pandemic which made a lot of people rethink their priorities and lifestyle choices which ultimately resulted in a lot of people moving house.

Additionally the lower interest rates in many years also made it much more accessible for buyers to get a bond, especially first time buyers, which in many cases meant that buying is cheaper than renting.

So what now for the second half of the year?

Like the British and Irish Lions tour so far, will it be a game of two halves or much of the same?

Well, we could not have got off to a worse start in July which began with new level 4 lockdown measures meaning most of our Gauteng buyers (which still account for a good portion of our purchasers and tenants) were not allowed to travel to Ballito.

Then the week of social unrest which understandably brought a complete halt to trading, and then another week of reflection which business wise, was again, understandably a very slow week.

Looking ahead for the last five months of the year I am feeling optimistic.

The panic selling that was spoken of a few weeks ago has not yet materialised and indeed we are still facing stock shortages in certain areas and price ranges which will mean that prices will hold.

The appetite to buy is still there from local buyers and the Gauteng buyers are starting to make contact again to come down and view.

I personally think stock levels will start to edge up again as the natural cycle of lower levels is due to come to an end anyway.

Even more noteworthy is the way this community stuck together during the week of unrest in a controlled and dedicated manner.

With the benefits of our gated estate market, buyers are talking Ballito up as one of the few places they want to buy in and that’s on top of how popular the North Coast is already.

So, all in all I see a strong end to the year with all things being equal, which admittedly is no guarantee these days!

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