Property Newsletter | June 2024
30 years of growth and market patience
As South Africa marks 30 years of democracy, the real estate market reflects on the nation's journey through notable growth and significant shifts. In this edition, we delve into the doubling of residential property stock, the extended time properties spend on the market, and the latest trends in House Price Inflation, giving a comprehensive overview of the current state of South Africa's real estate sector. And then there’s good news for Estate Agents concerned about the PPRA's new B-BBEE rules.
SA property stock doubles in 30 years of democracy
Over 30 years of democracy, South Africa's residential property stock doubled from 2.7 million to 7.2 million. Despite this, sales volumes plateaued, with 2023 recording similar numbers to 1994. Nominal sales prices increased significantly, rising from R150,000 in 1994 to R1.4 million in 2023.
Time on the market rises
Selling a house in South Africa's big five metros now takes longer, rising from 69 days in 2015 to 92 in 2024. Johannesburg's average increased from 57 days in 2014 to 103 in 2024, while Cape Town remains quickest at 75 days. Market conditions, price range, and property condition influence these times.
The latest House Price Index
National year-on-year house price inflation currently stands at 3,22%, showing a slight decrease from the previous month. Annual property inflation for the Low-Value segment has increased to 12,7% while High-Value properties saw a slight increase to 2,1%, Mid-Value properties to 3,5%, and Luxury properties to 3,1%.
Leverage Lightstone’s Level 2 B-BBEE to remain compliant
The PPRA's new B-BBEE rules require non-exempt businesses to secure 40 BEE points for a valid Fidelity Fund Certificate. This is crucial for small businesses and sole proprietorships in South Africa's real estate industry. Lightstone’s Level 2 B-BBEE status offers significant advantages to Estate Agents.
New look website coming soon
Something big is on the horizon – lightstone.co.za is getting a complete makeover, and we can’t wait to share it with you! Get ready for a sleeker, more modern design, seamless browsing from any device and everything you need to know at your fingertips. Look out for more on social media and visit our website in July for the big reveal.
Watch this space.
Happy reading!
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