Growing trend in buying houses below R1m

Published Jul 24, 2016


THERE has been a 14 percent increase in houses under R1 million sold over the past year.

Pam Golding Property Group chairperson Andrew Golding said more people were looking for smaller houses in conveniently located suburbs.

“Despite economic pressures, South Africa’s housing market continued to reflect an ongoing demand for homes to buy and rent, with stock shortages still evident in sought-after hubs and growth nodes,” said Golding.

Buyers are also increasingly looking at sectional title houses. He added that an increasing focus on smaller, more affordable and conveniently located residential accommodation will continue to fuel the demand for sectional title living.

“It also appears likely that new homeowners will remain a dominant force in the national housing market in general, and in the lower-price band below R1 million in particular for the foreseeable future,” said Golding.

Seeff chairperson Samuel Seeff said the decision of the Monetary Policy Committee of the South African Reserve Bank to retain the repo rate at 7% was the right decision for the economy and property market. But while the property market remains on a fairly even keel compared to last year, Seeff said the energy had been taken out of the market.

“Save for the Western Cape that is still benefiting from semigration (moving from one province to another), most other areas are beginning to see a slowdown in activity and price growth,” said Seeff.

But he added the market was far from dead. "There are still plenty of buyers and, while well-priced properties are still attracting good interest, sellers need to be mindful of the market forces and slower price growth."

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