South African property buyers are looking for more reasonably priced homes farther out from major cities, says Renier Kriek, the CEO of home financing company Sentinel Homes.
Since the start of the rate cycle in November 2021, the SARB has hiked rates ten consecutive times – adding 475 basis points to the repo rate – making it more expensive to pay off a monthly bond and affecting opportunities to borrow money. “Office vacancy rates have increased, resulting in consumers no longer being as motivated by office proximity when selecting homes. This means they can search for value in outlying areas.”
Kriek said that those that are still buying properties in the economic hub of Gauteng are no longer looking into freehold properties.with guarded neighbourhoods and more reliable services.