Share
Here's how SA’s property market is faring amid the COVID-19 crisis
Some parts of the property market are operating per usual during the current lock-down level 3, which has seen some movement in the sector but, is this enough for companies and consumers? Joining CNBC Africa to unpack the trends and an outlook of the property sector is Tim Akinnusi, Founder and CEO of Mortgage Market.
Fri, 19 Jun 2020 11:28:53 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Shift towards Property Ownership
- Impact on Residential Prices
- Resilience in the Rental Space
The South African property market is experiencing a mix of activity and challenges amid the ongoing COVID-19 crisis. As the economy gradually opens up, there has been a noticeable shift in consumer behavior when it comes to property transactions. Tim Akenusi, the Founder and CEO of Mortgage Market, shed light on the current trends and outlook for the sector in a recent interview with CNBC Africa.
One key theme that has emerged is the increased interest in property ownership rather than renting. With low interest rates tempting potential buyers, there has been a surge in activity particularly in the middle-market segment. However, the more affluent market has shown a slower response, possibly due to economic uncertainties.
Key Points:
1. Shift towards Property Ownership: Akenusi noted that many individuals are considering buying property instead of renting, given the favorable interest rates. This trend has led to increased activity in the middle-market segment, while the more affluent market remains subdued.
2. Impact on Residential Prices: The residential property market has seen varying degrees of decline in prices. Affluent properties, such as second homes and holiday homes, have experienced significant drops of up to 20 percent. In contrast, the middle-market segment, with prices ranging from 1.5 million to 600,000, has been more resilient with strong demand.
3. Resilience in the Rental Space: Despite the economic challenges, the rental market has remained active, particularly in the middle-market segment. Some renters are realizing they can afford to buy a property instead of continuing to rent, leading to further interest in property ownership.
Akenusi highlighted the importance of considering sector-specific views when analyzing price declines, emphasizing the need to adapt to the current market conditions. He also pointed out that the low interest rates are likely to persist, providing opportunities for buyers to enter the market.
In conclusion, the South African property market is navigating through a period of change and adaptation in response to the COVID-19 crisis. While challenges persist, there are opportunities for both buyers and sellers to make informed decisions and take advantage of the evolving market dynamics.
SIGN UP FOR OUR NEWSLETTER
DAILY UPDATE
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.