Property Newsletter | September 2022
Pockets of activity as SA Property market adapts to challenging times
South Africa, like most of the world, is going through challenging times. Covid-19, the Russian invasion of Ukraine and other geo-political tensions have all exacerbated already tough economic conditions. The local property market is not immune to these challenges, but it’s pleasing to report pockets of activity and progress around the country.
Volumes gently decline, but value is up
Residential property transfers in 2021 (330 105) edged ahead of 2018 (326 549) as the market recovered from the fall to 262 761 transfers in 2020, when Covid-19 lockdowns took their toll. But, as our lead story says, the average number of transfers over the last four years is lower than the totals recorded in 2018, 2019 and 2021, suggesting the market continues a gentle decline in volume terms. As we have seen in our reporting in recent months, the decline is driven by falling transfers in Freehold property, which in 2021 was nearly 10% down on its 2018 numbers. Both Estate and Sectional Title are trending marginally up since 2018.
The road often travelled
Just as the market is favouring the more expensive properties, so three towns along South Africa’s well known N3 which links Johannesburg and Durban, South Africa’s largest and third-largest cities, are experiencing fluctuating fortunes. Lightstone’s Town Characterisation tells a tale of a struggling Mooi River, a relatively well-off Hilton and a rapidly growing Howick somewhere in-between. The Lightstone Town Characterisation provides insights into a town’s character by merging data from a diverse set of metrics. Join us as we compare and contrast each town’s fortunes as we assess size, past and future growth and density, among other characteristics.
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