4
2 1
J A N U A R Y
2 0 2 2
O T H E R
P R O P E R T Y
N E W S
The average number of days homes are taking to sell has been decreasing in many areas. PICTURE: PXHERE
Q1 PROMISES TO BE ‘EXCEPTIONALLY BUSY’ THE MOMENTUM of South Africa’s property market over the past year will continue into 2022, says Marcél du Toit, chief executive of Leadhome Properties. This bullish sentiment was reflected in a dramatic decrease in the average number of days taken to sell a home in major centres between 2020 and last year. “This indicates that, despite headwinds such as load shedding,
petrol price increases and entering a cycle of interest rates increases, the property market is in an extremely positive place.” Although Du Toit says that the average offer value countrywide is around R1.5 million – a slight decrease over the second half of last year – the market is seeing renewed confidence in property as a long-term investment and a vehicle not only to
build wealth, but improve well-being. “South Africans are seeing the value in buying property again. They’re feeling more secure in their jobs and their incomes, and as business has become more sustainable, it has removed the fear factor from investing. “We’re confident that, despite the fourth wave of the pandemic, the first quarter will be an exceptionally busy period on the property market.”
Office property sector still facing major challenges
What to look out for when buying a plot Prospective stand buyers need to take into account a number of important factors before buying land on which to build their dream home. PICTURE: BENJAMIN DAVIES/UNSPLASH
T
HE ACCELERATED switch to remote working over the past two years, and the resulting migration from big cities to smaller country and coastal towns, is driving a significant increase in the number of people who are buying stands and building their own homes. But finding the right stand is more complicated than most people think, says Gerhard Kotzé, managing director of the RealNet estate agency group. In addition to affordability considerations, he says there are other factors that prospective stand buyers need to take into account before they start planning their dream home. These include: The slope: A steeply-sloping stand on a mountainside or shoreline might provide a dream view but you need to
be prepared for the fact that there are significant extra costs involved in excavating, piling and building on such a site, and in the measures necessary to ensure the safe drainage of storm water. The drainage: In general, Kotzé recommends that buyers avoid low-lying land where water will pool – no matter what assurances a developer or builder might give about modern construction techniques and materials obviating the risk of rising damp. Future development: Consider the effects of future development in the surrounding area and what type of properties your neighbours will be allowed to build. You should also take care to find out about plans for any new shopping centres, schools, medical facilities or offices close by that could mean there is a lot more traffic in the area.
RESOLUTIONS FOR YOUR HOME
The warehousing and logistics sub-sectors have been benefiting from the increased focus on online retail. PICTURE: PXHERE
B
Y THE end of last year, activity in the commercial property market had starting improving, following a dip in the third quarter. This decrease was more than likely due to a quarterly contraction in the economy and the disruption caused by the widespread unrest and looting damage in KZN and Gauteng, says FNB commercial property economist John Loos. However, the renewed activity from October to last month “suggests that the impact of disruptions of the third quarter were perhaps largely a thing of the past”. The industrial property market continues to perform best
of the three main commercial property sectors. “This probably shouldn’t be surprising, as it is the most affordable property class, as well as arguably the most adaptable, factors that can be relative positives in tough economic times, while warehousing and logistics are said to benefit from increasing focus on online retail.” Although there is evidence the retail property market battled to achieve further strengthening in recent quarters, Loos says office property remains the weakest. “The office property sector has the biggest challenges of the three classes, with a many companies reassessing their office space needs.”
An area can be extra appealing if there is a good neighbourly vibe. PICTURE: ANDRE OUELLET/UNSPLASH
HOMEOWNERS should consider making new year resolutions for their properties to help protect their brick-and-mortar assets, says Bruce Swain, chief executive of Leapfrog Property Group. He shares his top five property resolutions: • Have a professional evaluation done. This is a useful tool in helping you determine what could be improved to increase the value of the property. • Pay more than the minimum into your bond. As little as R500 a month extra can make a noteworthy difference in the long run by shortening the bond period. • Get a grip on interest. Shop around for the best interest rate on your bond. You are under no obligation to keep a bond at the institution that first granted it. • Become a master of maintenance. The condition of your property can have a significant impact on its future value. • Be a good neighbour. A less obvious way to add value to your property is by being a good neighbour. Friendliness is free and being nice to your neighbours can go a long way to elevating the overall appeal of your street, complex and greater neighbourhood.
