There’s been a quiet shift in South Africa’s property market – and it’s only going to get louder

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Affordability issues are having a subtle impact on South Africa’s property sector – and it’s leading to some sticky shifts.

South Africa’s property market is experiencing a subtle shift as new generations enter the market, says Waldo Marcus, head of marketing at TPN Credit Bureau, which is likely to stick as economic realities settle into the sector.

“All is not doom and gloom, however, with some economic indicators showing a positive uptick. Statistics SA’s GDP data for the third quarter indicates that the economy is rallying, up 1.6% after a contraction of 0.7% in the second quarter,” the group said. The residential rental market continued to be resilient in the second and third quarters of 2022, despite an interest rate hike rally, higher fuel prices and persistent load shedding.

with the latest generation coming into the market viewing property ownership very differently from previous generations. “Another trend which has been gaining momentum since pandemic restrictions were lifted – and is expected to continue – is semigration as people move out of large cities to smaller towns in search of a better quality of life,” he said.

 

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