Property Trends for the next quarter of 2023
Category News
It's been a year of challenges on many fronts, with Russia's war with Ukraine setting the scene for geopolitical uncertainty that has sent shockwaves through economies around the world. Locally, after two years of record-low interest rates, the Reserve Bank gradually hiked interest rates to help curb inflationary pressures, with the potential for another increase in March.
While this has impacted affordability and highlighted the importance of prudent budgeting, the residential property market has once again proven its resilience and buyer activity in some price segments, and property sectors remain robust. There is no wealth like owning property, and with that in mind, we look towards where that value will lie:
1. Sectional titles are hot
Sectional titles remain a drawcard, with almost a third of all property sales for sectional title properties, with many of these going to first-time buyers investing in new developments.
2. Going green and off-grid
Sustainable living is on the rise. Buyers want homes that provide convenience, sanctuary and sustainability. According to research from GWI, smart home product ownership has increased by 41% worldwide since 2019. Home automation - from blinds and lights to appliances makes modern living easier and simpler.
Additionally in South Africa, escalating load shedding, rising electricity costs and water issues have pushed alternative energy supply to the top of the home wishlist for many buyers. Solar energy options, boreholes, and other green features that can help reduce utility costs will add value to the home in the long-term, especially with many companies employing a hybrid working model, so homes that accommodate a home office and provide reliable internet connectivity remain sought after.
3. Exceptional estate life
The demand for estate living will continue as security becomes even more important, especially for buyers with families. The pandemic highlighted the importance of being able to enjoy amenities and recreational activities within a controlled environment. In Gauteng particularly, there has been a steady increase in the value of estate homes.
4. Silver semigration
This means people taking advantage of work-from-home models, and moving from north areas to the beautiful garden route and Plettenberg Bay. This shift was one of the reasons LWP Properties joined Team Rogers in establishing our first office in our Coastal Collection, catering for buyers who are allured by the serenity of the South African oceans.
5. Smaller is better
Micro-living takes the notion of lock-up-and-go a step further by offering urban homeowners a minimalist lifestyle. Many blossoming developments in Midrand are embracing this as a cost-conscious (as well as convenient) solution for young professionals, offering them communal facilities to enjoy at a fraction of the expense, all with the benefits of the traditional apartment life. Asia has long embraced this concept successfully.
6. Stronger together
The nuclear 'family' model returns! Multi-generational living remains an option for extended families seeking to pool their resources to deal with rising living costs, but this is being extended to millennials home sharing. This means the addition of a cottage or separate loft area to a property makes it excellent to accommodate parents, students, or even AirBnB the space out to earn some extra income.
Notwithstanding the economic and social challenges that marked 2022, there are some glimmers of hope to look forward to - hopefully the Reserve Bank responded timeously to inflationary pressures, which means it will be enough to bring it back in line with midline targets so that we can start to see interest rates stabilise and even drop by the end of 2023.
This means that while the best time to buy a property is always yesterday, the second best remains today!
Author: LWP Properties