Property Flash


December 13 2022

This year’s residential property market will be defined by the fall of the first-time homebuyer, the effect that rate hikes had on property demand and the ongoing resilience of the luxury property market.

“While 2020 and 2021 gave rise to the first-time homebuyer, who now had the opportunity to invest in property due to record-low interest rates, a quick succession of rate hikes in 2022 had a dampening effect on both first-time homebuyers and the middle-income earner at large,” said Grant Smee, MD of Only Realty Property Group, in an interview with Property Flash. 

Of course, demand for homebuying continued, despite economic uncertainty.

“The banks continue to lend favourably and low house price inflation makes homes buying more affordable,” said Smee.

The luxury property market was responsible for a large portion of the sector’s growth in 2022. According to ooba Home Loans, the majority of the bonds, 58% approved in quarter three of 2022 were for properties of R1.5m plus.

“In 2023, we expect most of the country to return to pre-pandemic lifestyles. However, many companies have decided to forgo the traditional 9-to-5 and have implemented ongoing hybrid or work-from-home policies. Based on this, semigration will continue to be a trend, with much of the activity taking place in areas that are more affordable but still offer a great quality of life,” saidSmee. Sought-after areas in the Western Cape include George, Paarl, Mossel Bay and the Northern suburbs of the Western Cape.

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