Anticipations among real estate professionals suggest a favorable trajectory for South Africa’s property market in the year 2024. Amidst prevailing political and economic certainties, the consensus is that sales will witness a notable upswing.
According to insights gleaned from a survey conducted by Lightstone towards the end of 2023, estate agents reported attaining merely 40% of their intended volume or value sales targets for the year.
Despite the looming challenges facing South Africa in 2024, including a high repo rate, the upcoming general election, and budgetary concerns, a significant number of estate agents maintain an optimistic outlook for the residential property market.
A whopping 73% of surveyed agents expressed confidence in achieving their volume targets for 2024, with an equally impressive 72% anticipating hitting their value targets. These figures represent a near doubling of the achievements recorded in 2023. While domestic economic and political uncertainties remain primary apprehensions among estate agents, global geopolitical and economic volatilities also contribute to the landscape, albeit with potential benefits for South Africa.
Various factors dampen market sentiment, including elevated unemployment rates, frequent power and water shortages, and uncertainties surrounding land expropriation policies.
Conversely, positive indicators include heightened foreign interest, an increasing presence of young buyers in the market, and a resurgence in the tourism sector.
Navigating Towards Market Recovery A consensus among agents suggests that economic uncertainties exert the most significant influence on the improvement of residential property sales. Political instability and a potential reduction in unemployment rates follow closely behind in terms of impact. Additionally, 46% of agents anticipate negative repercussions on sales due to rising interest rates, while 41% foresee no significant impact.
Lightstone forecasts potential adjustments to the repo rate in the foreseeable future, citing the need to adapt to evolving circumstances. While escalating interest rates might dissuade certain homebuyers, over half of estate agents predict an ensuing surge in house rentals, thus bolstering demand within the buy-to-let market.
In summary, despite the multifaceted challenges, the prevailing sentiment among industry professionals remains cautiously optimistic, with proactive measures and market adaptations poised to navigate South Africa’s property sector through the complexities of 2024.
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