Property market poised for growth
Against expectation, activity in the property market for the 1st quarter of 2024 was surprisingly buoyant. It appears that buyers are again looking to get into the market, especially in high-demand areas around the Southern Suburbs/Constantiaberg, particularly popular for its access to top schools and the UCT.
More good news followed in the form of inflation dipping to 5.3% for March after rising month-on-month since around mid-2023 which has held back interest rate cuts. The property market remains optimistic that rate cuts may still materialise from around mid-year, but that of course still depends on many other factors.
A stable election outcome and anticipation of an interest rate cut could be just the catalyst that the market needs to again pick up speed and reignite a growth cycle this year. Past experience has shown that a stable election result tends to boost property buying activity.
In any event, for those investing in Cape Town, the national and regional elections will have no bearing in terms of governance of the city which should further underscore the confidence that buyers are showing in the market.
Cape Town has also been named the 2nd best city to live in after New York according to the annual Time Out Survey of 50 Cities worldwide. This survey includes all of the well-known cities globally. Features which make Cape Town such a great place to live include the scenic beauty, tourist attractions and vibrant culture and lifestyle features.
These are also underscored by a strong focus on service delivery with Mayor Geordin Hill-Lewis very visible, and placing a massive focus on infrastructure spend and improvement.
From a property perspective, property owners have reaped the benefit of investing in a well-run city with property values rising faster than anywhere else in the country according to a number of House Price Indices including FNB.
For buyers, we would say there is no better time to invest than right now. The market is also good for sellers with many keen buyers, and now might be a great time to put your property on the market.
That said, when it comes to selling, look for an agent who knows how to close a deal, and can help you achieve your objectives. Do not compromise by choosing an agent based on an unrealistic price promise only for the property to remain unsold, or selling for a lower price than what you could have achieved.
So, keep on moving with Seeff. We proudly celebrate 60-years of moving the market forward and unlocking value for our customers. If you would like to know more about how we can assist you, or would like a free property assessment based on real data and advice which is in your best interest, please feel free to contact us today.
