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Flourishing SA property market bucks gloomy trends

Flourishing SA property market bucks gloomy trends

<p><strong>Despite an uncertain economic environment&sbquo; South Africa&rsquo;s property market is still an attractive option for investors&sbquo; says property analyst Shaun Rademeyer.</strong></p> <p>&ldquo;Despite a number of bleak predictions for both the economy and the <a title="residential property for sale" href="http://just.property/residential-property/for-sale/">residential property</a>&nbsp;market for the year ahead and the somewhat unconvincing plans set out by Zuma in his recent SONA address&sbquo; savvy investors can look to capitalise on the very real opportunities that current market conditions present&sbquo;&rdquo; says Rademeyer&sbquo; CEO of mortgage originator Betterlife.</p> <p><strong>Residential property demand flourishes when stock markets and other sectors are under pressure&sbquo; he says.</strong></p> <p>&ldquo;Despite dips in foreign investor confidence&sbquo; with the falling rand and the threat of &lsquo;junk status&rsquo;&sbquo; South Africa continues to remains an attractive and affordable property destination for overseas buyers&sbquo; and we are likely to see more activity in this sector.&rdquo;</p> <p>Rademeyer says South Africa&rsquo;s housing shortage will continue into 2016&sbquo; and demand will continue to outstrip supply&sbquo; especially in urban areas&sbquo; making for a more balanced market.</p> <p>&ldquo;Ultimately&sbquo; there are still more buyers in the market than sellers&sbquo;&rdquo; he says&sbquo; &ldquo;and what 2016 may well introduce&sbquo; is a shift from the strong sellers market we&rsquo;ve experienced in past years to a more balanced market. Whilst the pace of growth is likely to slow&sbquo; and remain in single digit territory&sbquo; the fact is it will still grow!</p> <p>&ldquo;In 2015 it was still a fairly aggressive market&sbquo; where decisions needed to be made quickly&sbquo; but with the market tipped to &lsquo;take a breather&rsquo; in 2016 this should put less pressure on purchase decision-making and give buyers increased confidence in the property process.&rdquo;</p> <p><strong>He says consumers should buy affordable homes as interest rate hikes are likely&sbquo; but these will have a marginal effect on buying trends.</strong></p> <p>&ldquo;I believe the market will remain stable for bond approvals in 2016&sbquo; however consumers will need to understand that the affordability of the home loan in 2016 will be different to 2015. A downgrade by rating agencies would make capital funding for the banks more expensive and impact the affordability guidelines for consumers&sbquo;&rdquo; he says. &ldquo;However&sbquo; consumers that have kept their debt to income ratios low and have been working smartly with their money could benefit from negotiating a good price on a home as we move from a sellers&rsquo; market to a buyers&rsquo; market.&rdquo;</p> <p>With security a priority in South Africa demand for secure estate living will continue smaller residential and sectional title units will see better than average price growth&sbquo; he says.</p> <p>The top end of the South African property market above R10 million continues to be active&sbquo; demonstrating continued resilience and buoyancy&sbquo; he says.</p> <p>Rademayer says metropolitan areas such as the CBDs of Sandton and Cape Town will continue to deliver positive growth in 2016.</p> <p>Article from&nbsp;<a href="http://www.timeslive.co.za/sundaytimes/businesstimes/2016/03/01/Flourishing-SA-property-market-bucks-gloomy-trends">timeslive</a></p> <p>&nbsp;</p>