Property Newsletter | November 2022
Changing realities shaping residential property market
South Africa’s residential property market is changing, shaped by post-Covid changing work patterns, poor service delivery and the growing need for housing in lower price bands.
Western Cape leads Gauteng in residential development
Residential property development in the Western Cape (WC) has been outperforming Gauteng since 2017 – and nine out of the top 10 suburbs in each province are home to affordable or entry-level housing. In Western Cape leads Gauteng in residential development, we discover that the bulk of new residential property is taking place in the affordable housing category, and the only exceptions in the top 10 in each province were Estates - Midstream in Gauteng and Burgundy Estate in the Western Cape.
Number of properties in Cape Town almost doubled since 1994
Our analysis of transfers highlights declining numbers in Gauteng and growing appetite in the Western Cape, and Number of properties in Cape Town almost doubled since 1994 finds that more than 60% of residential properties included in Lightstone’s analysis of core Cape Town suburbs were valued at more than R1m. The story also shows significant development of Affordable and Mid value homes in the selected suburbs.
‘Gearing for Growth’ Real Estate Industry Summit
Hayley Ivins-Downes, Head of Digital at Lightstone, recently spoke at the ‘Gearing for Growth’ Real Estate Industry Summit. She highlighted that residential property transfers have been treading water at around 350 000 transactions a year since the market fell sharply during the financial crisis of 2008, although the value of transfers has been recovering briskly.
Hayley also reminded the audience that Lightstone had put house price inflation at 3% for 2022, with a high road scenario of 3.6% and a low road scenario of 2.6%, with SA’s annual inflation rate at around 4.55%. This article unpacks the key trends that were shared during this presentation.
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