Decoding the SA Property Market
In South Africa, property success isn't just about location; it’s about timing. You might see a house in Pretoria sit on the market for six months, while a flat in Cape Town sells in six days.
This happens because the market swings between two states: a Buyer’s Market and a Seller’s Market. Knowing the difference can save you hundreds of thousands of Rands.
Here is how to spot the difference in 2025.
1. The Buyer’s Market ("Pick and Choose")
Here, there are more houses for sale than people willing to buy them. Supply exceeds demand. This has been the reality for much of SA recently due to high interest rates.
How to spot it:
● Old Listings: You check Property24 and see listings that have been active for 4+ months.
● "Price Reduced": You frequently see banners dropping the asking price.
● Board Clutter: One complex has five different estate agent boards outside.
The Strategy:
● Buyers: You have the power. Don’t be afraid to offer 10%–15% below asking. Negotiate for extras, like the inverter or curtains, to be included.
● Sellers: You must price realistically, not emotionally. If you overprice in this market, your home will stagnate.
2. The Seller’s Market ("Snooze You Lose")
Here, there are more buyers than homes available. Demand exceeds supply. Currently, we see this in "semigration" hotspots (Western Cape) and secure lifestyle estates.
How to spot it:
● Sold Fast: "For Sale" boards get "Sold" stickers within a week.
● Stock Shortages: You search for a 2-bedroom place in a specific suburb and find almost nothing available.
● Multiple Offers: Agents tell you there are already competing offers on the table.
The Strategy:
● Buyers: Speed is key. Have your bond pre-approval (from ooba or BetterBond) ready before you view. If you like it, offer the full asking price immediately.
● Sellers: You can hold out for your price and demand "clean" offers (cash or pre-approved bonds) rather than offers subject to the sale of another property.
The "Micro-Market" Reality of 2025
South Africa rarely has one single national market. We have "micro-markets."
● Inland vs. Coastal: Gauteng has largely been a buyer's market offering incredible value. The Western Cape, driven by semigration, often operates as a seller's market with higher prices.
● Price Brackets: The luxury market (R10m+) is slower, while the "sweet spot" for first-time buyers (R800k – R1.5m) is highly competitive.
The 2025 Outlook
As the Reserve Bank cuts interest rates this year, bonds are becoming cheaper. This usually shifts the scale. If you are a buyer, now is likely the bottom of the cycle. Waiting too long might mean facing higher prices and more competition later in the year.
(Contact the Seeff Mossel Bay Property Specialists for all your Property needs – Tel: 044 690 4477 / 044 698 1677 or 044 620 2737)
