Cape Town, Garden Route and Johannesburg property markets - what's happening.
When it comes to property and property market trends in South Africa, it is important to stay on top of what is happening, especially if you are looking to buy or sell property.
But what is actually happening in Cape Town, Garden Route and Johannesburg property markets?
According to FNB's second-quarter September property barometer, property markets throughout South Africa are starting to show signs of stabilising, as the demand supply gap has narrowed slightly. It is important to note that according to the barometer, the Johannesburg property market is showing slightly more growth in comparison to its Cape Town counterpart, with a growth rate of 2.6% as opposed to Cape Town's 0.6%.
Affluent areas in both Cape Town and Johannesburg continue to remain under pressure, however, it is Cape Town which has seen the greatest effects in terms of the luxury property market.
The main issue facing the luxury property market in Cape Town is the affordability of properties.
Property value in Cape Town has deflated in several key areas, and areas along the Atlantic Seaboard, such as Sea Point and Camps Bay, have seen the greatest dip in prices; while low-income areas in Cape Town have thus far remained largely insulated from the property market trends in the city, continuing to grow steadily. As a result of the deflation in value, the property market in Cape Town currently favours buyers rather than sellers.
Although the Johannesburg property market currently still favours buyers, when it comes to affordability, Johannesburg is undoubtedly the better option, with the cost of renting property in Cape Town still remaining significantly higher than in Johannesburg. The cost of buying property in Cape Town, both in and out of the city centre is almost double that of Johannesburg.
It is important to note that property prices in Cape Town are growing more slowly as the political and economic state of the country has lessened foreign interest in South African property, while increasing rates of emigration means that there is an oversupply of properties on the market in both Cape Town and Johannesburg.
The property market along the Garden Route, however, continues to defy nation-wide property market trends. The property market along the Garden Route, especially in George, continues to thrive despite the nationwide slump and the recent discovery of gas off the shore of Mossel bay, is only set to boost the Garden Route property market.
For more information on the second quarterly South African property market trends, visit the FNB September property barometer here.
Read our article on 4 best South African beaches to visit this summer here.
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Contact Hamilton's Property Portfolio on 011 463 0155 or mail to firstname.lastname@example.org