PROPERTY IN 2022

As we move into 2022, we expect the following trends to impact our property market, according to Pam Golding research: Interest rates: These are likely to be moving higher but the slow pace suggests this will remain a benign environment for the housing market with interest rates expected to rise gradually in small 25bps increments. Affordability: We have already seen the surge in first-time home buyer demand fade as the effects of the aggressive interest rate cuts early last year abate. Although interest rates are unlikely to prove a significant impediment, consumers are dealing with the economic fallout of the pandemic, load shedding and subdued growth prospects. That said, SA’s young population does mean that there will always be a steady demand from young buyers – to the extent that they can afford to purchase a home. Co-living and merging of residential and commercial: The co-living trend continues to gather momentum despite initial fears that the pandemic would bring this to an end. People have realised that infection is more about shared air space than contaminated surfaces, and outdoor space is likely to retain its appeal as we all spend more time at home –

GARETH BAILEY HIGHLIGHTS PROPERTY TRENDS AND FACTORS FOR THE YEAR AHEAD

less time than last year but more time than before Covid. A key theme of the pandemic is that businesses need to be as flexible as possible, so co-working remains popular, as does co-living – in micro units with shared living spaces which offer community and reduced costs and maintenance. Conversion of office space: We have seen the conversion of office space into residential and/or the mixeduse model for some time, but now as businesses become more flexible to survive in the pandemic economy, the focus is to try to tap into as many markets as possible – office, retail, residential, gym, etc. Pure office space is likely to be under the most pressure of all sectors, so it is anticipated that much of this will have to change. Business hubs: It is becoming apparent, particularly given the acceleration in fuel price hikes, that even if people only come to the office occasionally, the office needs to be in a prime and accessible location, making location even more important than before. This implies a focus on central cultural districts in recognition of the fact that people are not there purely for the business but rather acknowledging the fact that in order to collaborate they may need physical connection. Fading Zoom Boom but semigration prevails: One of the key trends to emerge during the pandemic was the rise of the Zoom Boom – the realisation that working remotely meant you were able to live anywhere. This prompted many homeowners to relocate to peripheral suburbs or to smaller towns historically considered holiday or retirement destinations. Now, however, people are gradually returning to the office amidst a realisation that there are certain types of work which require physical interaction with ones’ colleagues. While there is currently general agreement that we are unlikely to return to the five-day at the office workweek, the realisation that one may well be required to be present in the office three days a week has made people reassess the reality of living a few hours’ drive away from their place of work. To rent or buy? The shift from renting to buying was probably at its peak in 2020 as first-time home buyers took

ABOVE: Gareth Bailey, Pam Golding Properties.

advantage of the interest rate cuts. Now that the impact of those cuts is fading and the reality of the sluggish economy is being felt, the rental market is improving. Also, the need to be as flexible as possible in these extremely uncertain times will undoubtedly increase the appeal of rental. However, South Africa has a strong tradition of home ownership which remains intact, including first-time buyers and those seeking value for money. Estates remain sought after: Homes in estates remain in high demand and buyers will pay a premium for a sought after, secure estate – for example, Pam Golding Properties uMhlanga sold three similar properties for over R10-million each in the first two weeks of this year. Multi-generation living: The need for flexibility amidst challenging economic conditions suggests that multigenerational living will continue to gain in popularity. Going off the grid: Where affordable for homeowners, there is an ongoing desire to go off the grid, even if partially, with the installation of energy and water saving solutions which are now becoming the new normal amid rapidly rising costs of electricity and utilities coupled with service delivery challenges, and partly because climate change is becoming a critical mainstream issue. Outlook and summary

We remain optimistic regarding the country’s residential property market, which is expected to remain active as the long-term appeal of this sector holds strong. This is especially so since, in addition to the usual reasons for movement, the lockdown has inadvertently created the rationale for a wave of new reasons for relocation and property acquisitions, from the aforementioned upsizing for additional space due to work from home scenarios, to lifestyle moves, to more appealing destinations further afield. If you can live and work anywhere, it makes sense to live somewhere with a better quality of life in a more desirable location.

With a population of predominantly “young” buyers, many of whom are likely to prefer life in a city hub, the increasing demand for accommodation to buy is helping drive activity in the residential property market, filtering upwards across all sectors of the market, boosting activity in middle markets and higher price bands as some existing homeowners upscale, and even creating stock shortages in high-demand areas. *

Durban North office · 031 573 6000 Umhlanga office · 031 561 5300 Umdloti office · 031 568 1299

Umhlanga Rocks / R10 million

Ref# 1ND1550096 Bedrooms 3 / Bathrooms 2 / Parkings 2 / This gorgeous apartment is set in private settings in the prime area of Umhlanga Rocks. Direct beach access with never ending views of the ocean. Lie in bed and hear the waves crashing. Maria De Luca 084 752 3041 / Kerry Burrows 079 582 0082

La Lucia / R25 million

Ref# 1ND1555679

Bedrooms 6 / Bathrooms 6 / Garages 4 / Stunning residence with 180 degrees sea views. From the ground entrance and sweeping staircase, to the expansive open-plan living areas, this home is absolutely breath-taking. Ellmarie Spencer 083 256 4381

La Lucia / R4.495 million

Ref# 1ND1557430

Bedrooms 3 / Bathrooms 3 / Parkings 5 / Hot off the press, this beautifully renovated home, is well appointed in a 24/7 guarded, pet friendly Estate. Completely revamped from roof downwards. Stylish, safe and secure. Belinda Du Plessis 082 851 2579

Durban North / R6.6 million

Ref# 1ND1554549 Bedrooms 3 / Bathrooms 2 / Parkings 2 / Situated in sought after Monteith Place with breath-taking sea and stadium views, this grand character home offers 2 lounges, dining room, study and a spacious kitchen. The enclosed patio has stack back doors leading to a lush, mature garden and inviting pool. Stella Simes 084 556 5842