The outlook for South Africa’s housing market is looking increasingly optimistic with a number of positive indicators evident and early signs of sustainable growth in house prices and market activity already starting to emerge, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
According to the Pam Golding Residential Property Index, national house price inflation continues to rebound, rising to +4.7% in July – a level last seen in February 2022, having risen steadily from a low of +2.4% in Q3 2023. “All major metro markets are showing signs of recovery, with Cape Town enjoying the strongest growth during the year to date , while national housing market activity has normalised and shown tentative signs of recovery in Q2 2024 as purchasers continue to buy and sell for all the usual reasons.
“Activity in the areas north of Durban is also rebounding and we have already seen an uptick in interest as the market anticipates interest rate cuts. La Lucia and uMhlanga remain sought-after areas, particularly the residential estates.
“According to ooba, national applications for first-time buyers rose to 46.6% in July 2024, rebounding from a subdued 44.3% in June, with demand likely to improve further later this year. This anticipated rebound in first-time buyers is likely to see stronger demand for homes around the R1m mark in urban nodes, which typically means sectional title properties.