What experts predict for property in 2019
South Africa - Property360
The country’s real estate market has struggled this year, but is expected to lift after next year’s elections
This year has been challenging for the country’s property market with political instability, rising inflation, recession and record fuel prices the major hurdles.
While the situation is predicted to improve in 2019, experts say this is likely to occur in only the mid to later part of the year.
“Despite all the challenges, the real estate sector has remained more buoyant than many expected,” says Mike Greeff, chief executive of Greeff Christie’s International Real Estate, adding that the outlook for 2019 “seems quite promising”. He says the results of the election will provide more clarity.
Residential building statistics
South Africa - Absa
Higher-density housing driving residential building activity
The first three quarters of 2018 saw significant diverging trends at a segment level in private sector-financed residential building activity in South Africa (see explanatory note). On a year-on-year basis the number of building plans approved by local government institutions improved in January to September, whereas the number of housing units reported as completed showed a contraction over this period.
The number of building plans approved for new housing increased by 8,3% year-on-year (y/y), or a total of 3 492 plans, to 45 612 plans in the nine months up to September. This growth in plans approved came on the back of growth of 23,3% y/y in the segment for flats and townhouse, while the two segments of houses saw a contraction in plans approved in the 9-month period compared with a year ago.
The volume of new housing units reported as being completed dropped by 4,4% y/y, or 1 275 units, to a total of 27 655 units in the first nine months of the year. The category of houses smaller than 80m² contracted by a massive 28% y/y, with the segment of flats and townhouse showed growth of 17,2% y/y.
Building stats September 2018
Online agencies’ sales conversion rates revealed by analyst
UK - Estate Agent Today
An estate agency analyst has shared with Estate Agent Today his findings on the current and recent conversion rates of online agencies.
Andrew Stanton, who worked in traditional agency for over 30 years, now runs a consultancy called Estate Agency Insights and Strategies.
He says that out of some 1.5m homes marketed in the past 12 months, only 100,000 were handled by online agencies. “Although the media loves to talk about cheap fees and online agents, in fact the general public are using the traditional approach” he adds.
Estate Agent Today
What you can do now if you want to buy property in 2019
South Africa - Rawson
It’s hard to believe that 2018 is drawing to a close. If you’re like us, you’re probably already planning and setting goals for 2019. For those who would like to get their foot in the property market, 2019 looks like a good year to do so – the great thing is that you don’t need to wait until next year to get the ball rolling either! Below are five things that you can do this side of the year that may help you secure and buy your first home (or second) in the new year.
1. Know what budget you have
It may seem obvious, but you’ll be surprised at how many people don’t actually know how much they can realistically afford. We understand that for many this is an overwhelming first step to take, but it need not be. Start by looking at your monthly income and assets, and then deduct any debt you are paying off and monthly expenses to know how much you’re left with in a month to repay your bond.