Navigating Challenges, Embracing Opportunities
Category News
As 2023 comes to a close, it's a great time for all of us to reflect the year that has passed. As seems to be the trend in recent years, 2023 was a year of great flux, with the South African property market feeling the real economic effects of the events of the last five years. While these challenges in the market have had real impacts on both the volume of transactions and the price at which those transactions have taken place, we at Home Ground Real Estate have seen some true green shoots in the last quarter of the year and are quietly optimistic about the year ahead.
As frequently discussed around braais and board rooms, the property market in South Africa as a whole has encountered numerous head winds over the past five years. Economic uncertainty driven by the impact of loadshedding and the upcoming elections, global events like the COVID pandemic, the various conflicts in Europe and the Middle East and most pressingly for residential real estate, escalating interest rates have all combined to create a very bearish outlook for the real estate industry.
While this negative sentiment is entirely rational, we strongly believe that the signs of a turnaround are there and that this is creating excellent opportunities across the board.
As we have mentioned in previous blog posts, our local North Coast market has remained buoyant when compared to the rest of the country and we believe that this is largely driven by the massive variety of high quality development that has come online across the price curve. From entry level offerings for new market participants to high end, luxury property in our premium estates, the North Coast continues to offer value to buyers. This, coupled with the top level amenities in the area covering education, healthcare, retail and burgeoning commercial and industrial nodes has created a true bubble that has largely been protected from the worst impacts of the aforementioned economic difficulties.
In addition to this growing confidence in the North Coast, we are excited to announce the opening of our KZN Midlands branch, headed up by Ponky Dolby. Ponky brings a wealth of experience from her successful career in the hospitality and development industry in the Bahamas. Her unique perspective and expertise will undoubtedly contribute to the success of Home Ground Real Estate in the Midlands.
With its incredible natural beauty, wide variety of high quality schools and deep connection to both Benj and I from our childhoods, the Midlands was a natural next step for us to grow the business and we are extremely excited to offer our services to this fast-growing market. For all our clients in the Midlands and further afield, please reach out to Ponky for all your property requirements in this fast growing piece of the South African real estate market.
As we turn the page on 2023, we are optimistic about the next 12 months in the South African property market. With interest rates holding stable, inflation back in range and the stability that will come post-elections, we expect to see the market continue to pick up as we have seen over the last three months.
When viewed from above, these challenges pave the way for the next cycle of growth. Our dedicated team is committed to navigating the ever-changing landscape and providing our clients with exceptional service and support. We wish you all a wonderful holiday season with your friends and family and a prosperous end to 2023.
This article has been compiled for general interest and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your property practitioner for specific and detailed advice. Errors and omissions excepted (E&OE)
Author: Murray Beattie