Predictions for SA's residential property market in 2019
Due to the uncertainty pertaining to land reform policies, 2018 has not been a great year for the property market. However, there are those that think the worst is over and that once we have put the elections behind us, we will start to see things improving, both for the property market and the economy at large.
With the country having just emerged from a technical recession after the gross domestic product contracted for a second quarter in a row, indicators suggest another tough year ahead of us, says Paul Stevens, CEO of Just Property.
“The country’s rapidly increasing cost of living, predominantly a result of the increasing cost of fuel, has put severe pressure on consumer spending. Inflation is expected to be higher in 2019, and the possibility of interest rates increasing looms large. Both homeowners and tenants are going to be increasingly stretched to meet their monthly home loan or rental commitments,” says Stevens.
Three key factors that will drive SA’s property market in 2019
What will be the most important developments and trends affecting South Africa’s residential property market in 2019? We can expect pressures on disposable income to impact the lower and middle price markets, while buyer caution and low consumer confidence will have a more significant impact on the upper and luxury end of the market.
This is according to Herschel Jawitz, CEO of Jawitz Properties, who provides his thoughts on what he believes will be the key factors facing the residential property industry in South Africa in the coming 12 months:
1. What developments will dominate or become more important this year?
Consumer confidence, 'buyer caution' to continue
Consumer confidence holds the key to any possible turnaround in the residential market in 2019. While consumer confidence remains in positive territory, it has not yet translated into an increase in the demand for property by buyers. This buyer caution will be compounded by pressures on disposable income and the perceived uncertainty as the country heads towards the 2019 election.
Tips for buying a 'city pad' and best compact cars in 2019
City living is on the rise and according to the United Nations, two out of every three people will live in cities or other urban centres by 2050. Africa will soon have its first megalopolis, when the two growing cities of Pretoria and Johannesburg meet. With this rise in urbanisation, people are adjusting their lives to fit into the city landscape, opting for funky urban apartments and smaller, more compact cars.
We asked George Mienie, AutoTrader CEO, and property specialists Peter Cameron, Managing Director of Cameron Owen James Luxury Real Estate, for their practical tips on buying the ideal apartment and a car to go with it. “If you have just moved to the city and are looking for a sense of community, choose an apartment block which has a dedicated area for residents to meet,” says Cameron. “This could be in the form of a pool, gym or restaurant.”
An expert’s guide to short-term sectional title letting
Nothing in the Sectional Titles Schemes Management Act (“the Act”) or its prescribed rules defines or regulates short-term letting. Occupation of a unit by a short-term residential tenant does not imply that the unit is being used as a hotel or guest house, or for any commercial purposes in breach of its General Residential zoning under the relevant town planning scheme.
Many published articles have expressed the view that short-term letting gives rise to a range of serious problems in sectional title schemes. Short-stay tenants are considered primarily responsible for nuisances such as noisy late-night parties, security breaches and tracking sand into the hallways and elevators, amongst many others. But there does not seem to be any solid evidence that the behaviour of short-term tenants is any worse than that of permanent owner residents and longer-term tenants.