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Prime Property

Prime Property

Date: 2020-01-31

The Year in Reflection, and 2020 Expectations for Property.

As we welcome the New Year, the latest Lightstone report and FNB property Barometer indicate the following.

Security Estate & Sectional Title on the Rise: Security Estate vs Freehold homes is on the rise, and in the last five years have out-sold freestanding houses by approximately 6%.

Kwa-Zulu Natal North Coast Remains Sought-after: KZN's North Coast region and Umhlanga are a strong region of growth - Due to semigration from other provinces.

Popular Property Price Bracket: The most popular property price bracket selling nationally is between R400k - R1.5 m. Properties over R3m are in the lowest demand bracket with only 5% sales.

Best time for a Bond: Now is the time to get a bond. The highest bond approval has been in the fourth quarter of the year, with the average concession of 0.04% above prime - the best rate charged since January 2011.

Emigration Still Catalyst for Sales: According to FNB, emigration has become a more prominent factor in the last two years. Sales have risen to 13.4% in Q2 2019 - representing a 10-year high.

Accurate valuations and realistic pricing: When purchasing property, accurate market-related pricing and valuations are of critical importance and is a key consideration.

Looking at 2020: Recovery in the housing market is likely to be modest hence it is advisable for homeowners tofocus on location and minimal overheads.

Consider the well-located growth nodes offering convenience, reduced transport costs and future return on investment.

Houses within estates and those with green amenities such aswater and energy saving features are increasingly attractive to buyers.