The property market in South Africa shows promise for buyers

Seeff unpacks the current state of the property market in South Africa 

To buy or not to buy? As a first-time buyer in today’s South Africa, some unique challenges and concerns will likely cross your mind. The Eskom energy crisis hangs over the economy, compromising households and businesses, while there is always the fear that interest rates will skyrocket.

Seeff has good news for prospective buyers overlooking the property market in South Africa. We can gladly report that opportunities abound for buyers and sellers, and the property market overall shows a consistent trajectory.

Buyers will be pleased to know that solar power is being considered to combat Eskom’s unreliability, while there is also the chance of tax breaks for households and businesses. 

What is the state of interest rates and property prices for the property market in South Africa?

January’s Consumer Price Index (CPI) rate of 6.9 is down from 7.2% in December 2022, which has lifted the pressure on interest rates. While interest rate hikes are possible anytime, Seeff expects interest rates to decrease later in 2023.

The good news continues. Property prices have remained relatively affordable due to the low growth over the last 18 months. Seeff predicts a more stable market and no unexpected price shocks like those experienced overseas during the COVID-19 pandemic.

The bank lending climate is also encouraging for buyers: Ooba reports an 82.6% home loan approval rate. Deposit requirements are also still low, around 8.1% on average. If you’re planning to buy a house for the first time, the banks appear to be on your side.  

If you’re debating renting instead of buying, the rental property market in South Africa is also steady. Although rental rates may come under some pressure due to tenant financial difficulties, Seeff is pleased to note that the number of tenants in arrears is decreasing.

Contact an experienced Property Practitioner to take advantage of the encouraging state of the property market in South Africa. Seeff’s Property Practitioners are here to guide you towards the best decision and answer any questions. For more advice on your journey as a first-time buyer, read our blog on what to look for when buying your first home.