What Does the Current South African Real Estate Market Look Like?

South Africa’s housing market isn’t exceptionally different from most other developed or developing countries, although the country’s economy and politics have changed. If you are looking to work in real estate or sell your investment property in SA, you have to keep up with the times if you're trying to prepare your home to make decent money in the market. This article will go over some new trends that affect property sales in the country...

New Tastes For Modern Home Seekers

With Millennials and young migrants obtaining more capital, the real estate market is shifting from what your grandparents had in mind for a home. This may mean non-standard designs, less emphasis on big lawns or gardens or smaller living spaces. Green, “eco-friendly” houses would be more marketable to younger generations.

Taking Heritage Hill Conservancy as an example, the idea is to scrap the stifled urban model and bring a cozy small town-like atmosphere within a contained environment. Of course, those who have those tastes are at the higher end of the market compared to the working-class home buyer.

Buyers are also looking for practicality, such as homes that will be close to work, their school, or their favorite hangout spots, which tend to be in the center of cities. This type of buyer may be willing to downscale to a smaller, more affordable property to have this convenience.

Buying For Airbnb

The sharing economy is booming to the point that it’s no longer a fad, but a viable business plan. Property investors are not looking for places that aren't idea for renting on Airbnb. Certain aspects like rooms in independent entrances or bathrooms are ideal for this type of buyer considering it would be more profitable to split rooms than rent entire homes on the platform.

In particular, there is a demand in Western Cape when the tourist season is high and Airbnb rentals are all reserved. Areas away from the wave of tourists have very little traffic to room listings, although it is becoming more prolific in small cities as well.

Heightened Security

Security is a concern for pretty much everyone of all backgrounds in South Africa, so this is becoming a major factor in purchasing a home. A property in a gated community with security features will always do well on the market, even if it isn’t an exceptional home otherwise. It may also be a good idea to pre-install IoT security equipment, build a fence, and invest in some strong doors before listing a house for sale.

Even in areas that are perceived as safe, being mindful about security helps with the “just-in-case” factor for home buyers. Assumptions about safety should never be made, especially in many South African cities.

Online First

While it’s always a good idea to diversify your methods when marketing a house, younger generations have especially become dependent on seeking homes online. This means you should have all online platforms covered if you wish to reach a broader set of eyes. Places to list online may include local Facebook groups, Gumtree, OLX, ClassAds or Locanto.

When creating an online listing, having high-quality photos goes much further than having a concise text description, although you should have both down. It wouldn’t hurt to make a “walking tour” video of the home and upload it to Youtube and Facebook to include with your listings. This is a technique being utilized with a lot of modern real estate firms.

Final Thoughts

The South African real estate market is still alive and healthy, although it is changing rapidly. If you can keep up with modern trends, you shouldn’t have a problem selling or renting out your property.