SA residential property market healthy

The South African residential property market is at last showing signs of a healthy recovery, having slowly but steadily recuperated from the recession of 2008. Increasing sales volumes, rising values and growing demand all underline the recovery to more normal trading conditions, says Dr Andrew Golding, CE of the Pam Golding Property group. He said that factors illustrating the market recovery included:

 ⊗ A resurgence of investors, due partly to high demand for rental accommodation
 ⊗ Sustained growth in middle income sales, particularly among the emerging black middle class
 ⊗ A desire for homes in locations which offer better security and access to work and schools
 ⊗ The re-emergence of the new developments market, mainly in major centres and growth nodes, coupled with demand for sectional title homes
 ⊗ The continued strong performance of the top end of the market
 ⊗ The re-emergence of the über prime sales market to both local and international buyers

But potentially restraining further market recovery were factors such as continued perceived limited access to mortgage bonds, fewer homes coming onto the market, affordability, and a relative seesawing of consumer sentiment. Yet the residential property market has continued to improve, he said. Values appeared to be outpacing volumes, which was encouraging, since sales at present were being constrained by a shortage of stock, or by slowing demand.