Property Market Trends & Predictions for 2022/2023 2022 to date has been an incredibly busy and exciting period for our team selling on the Atlantic Seaboard with unprecedented levels of activity in sales and rentals done over this time.
Lending institutions, property economists and those in the industry had predicted a boom in the Cape Town property market post Covid lockdown and the 2019 slowdown and this has proven to be 100% true with a dramatic shift from a glut of stock to a shortage of stock across the board in all suburbs.
The rental housing market in our areas is also experiencing a shortage of stock with tenants scrambling to find suitable accommodation and very little available.
A number of key factors have driven this market trend: This all started in July 2020 when South Africans were allowed to move around again freely post hard lockdown and estate agents were allowed to sell again.
Many people who had been forced to work from home and leave their formal office environment during hard lockdown realised that they no longer had to live in a location dictated by an office as they were now able to work from home using various digital platforms to “meet“ staff and customers. This resulted in the first surge or wave of property sales and rentals with many Capetonians selling up in the leafy suburbs to move to the Atlantic Seaboard to be closer to the beaches and sea. This initial uptick in sales and rentals was also driven by SA buyers from upcountry relocating for the same reason.
Fast forward to January 2022 and this market became even busier across the board including the luxury market in Cape Town encompassing the Atlantic Seaboard, Hout Bay, Noordhooek and Kommetjie due to foreign tourism returning.
During lockdown South African buyers had been given a respite from competing International cash buyers from Europe, UK and USA but from the start of this year they have returned and have now been actively looking at the remaining properties across the Atlantic Seaboard and have been driving this second wave of sales unusually longer into the normally quieter winter selling months of the year.
We do expect this trend to continue with home prices increasing further on the back of the shortage. Our increasing bond lending rate may however slightly dampen the level of activity of local buyers requiring finance but nonetheless we expect volumes of sales to continue.
We now have a number of well qualified buyers on a waiting list so should you be considering selling or letting your home and wish to have an updated valuation of your home please do not hesitate to contact us.
Best wishes, Margie, Clare, Fiona, Arlene, Terry, Alison & Jane