Gauteng property market prospects
A number of factors allude to the possibility of Gauteng’s property market strengthening in 2018. This is thanks to affordable homes on the market, and the increase in first-time buyer numbers. There’s been a noticeable increase in enquiries, sales and overall consumer confidence.
After a downturn in activity in the fourth quarter of 2017, according to many Pam Golding Properties (PGP) agents, it seems as if the combination of affordable homes and more first-time buyers could result in the an increase in people buying property in Gauteng. In the latest PGP Estate Agency Survey it was reported that 51.5% of agents anticipated an uptick in activity in 2018.
The key factors, according to the PGP Agent Survey, affecting the Gauteng property market were political uncertainty and the tough economy. Additional factors were highlighted as lack of affordability, difficulty accessing finance and also a shortage of stock.
“The recent political transition is likely to herald a significantly more positive era for the local housing market and investors have responded favourably, with Goldman Sachs naming South Africa the emerging market story of 2018. Renewed confidence from both foreign and local investors has seen the Rand strengthen sharply while the country’s economic growth prospects have already started to improve,” says Sandra Gordon, PGP Research & Market Analyst.
Gordon also added that the survey found PGP agents to be more optimistic about the outlook for the housing market in 2018, as 62% of agents anticipated a 5% price increase in their respective areas. It seems as if the optimism surrounding recent political transitions could even result in the market surprising even further.
Some of the areas earmarked to see significant growth, according to Rupert Finnemore, PGP Gauteng Regional Executive, are Fourways, Bryanston and Randburg. The diversity of the available properties to suit all budgets being the biggest reason. Other areas to keep an eye on include Parkwood, Parktown North, Parkview and Parkhurst because of the lifestyle and convenience they afford residents.
