PROPERTY MARKET EXPECTATIONS FOR 2024
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Many factors will potentially continue to have an influence on the South African property market during 2024, but it is certainly not all doom and gloom says Gerhard van der Linde, Managing Director of Seeff Pretoria East.
Even though everyone is hopeful that we can expect interest rate cuts, the decisions by the US Federal Reserve will determine where South African interest rates, even though the South African inflation rate is officially now much closer to the target rate of between 3% and 6%. To remain competitive and to attract investment, the SA Reserve Bank will have to hold off on any major interest rate cuts.
Cost of living has a huge implication on affordability, and even though the "official" inflation rate appears to be close to being normalised, consumers find the cost of living challenging when food prices, fuel costs and the school fees and medical contributions are considered.
From an investor's point of view, we believe we are now at or very close to the bottom of the market cycle, and that the first half of 2024 will be one of the best times to buy real estate since the past decade says Van der Linde.
SONA 2024 was largely as expected. There is little encouragement to take from SONA; it seemed a little tired and uninspired. The most important message to President Ramaphosa and the government must surely be that there is no longer time to waste on indecision or plans about what needs to be done.
Global markets are starting to turn, and our economy and country need an injection of energy and enthusiasm. Plans now need to become visible actions. Interest rate cuts and other incentives aimed at stimulating growth should be prioritised for the economy and property market.
We certainly hope there will be more enthusiasm and concrete measures from Budget 2024/5 to put the economy back on a growth path.
Sellers must remain realistic when considering the market value of the properties and obtain the services of a qualified property practitioner to assist with a competitive market analysis, and buyers must make well informed decisions before putting hand to paper. The demand continues to be highest for properties in estates and boomed off areas where there is a significant emphasis on security. Proximity to schools and properties that are not reliant on Eskom for electricity continue to attract more attention from buyers.
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