SAPTG’s Property Clock, a graphic representation of the real-estate market, takes into account data such as interest rates, supply and demand cycles, finance availability, construction and rentals. Adjusted monthly, this quick overview of South Africa’s property market helps you make informed decisions.
January 2012: SAPTG has decided to leave its Property Clock unchanged at 22 minutes to the hour. The Clock, which measures movement and trends in the national real-estate market, retreated by 5 minutes in 2011.
Dieter Deppisch, Head of Property Data Solutions, explains: “The South African residential property market continues its less-than-enthusiatic amble through the current cycle. Its bias toward supply rather than demand means that property prices remain under pressure and sellers seldom achieve their asking price. Data shows that only 13% of sellers achieve their asking price and over 90% have to discount their asking price.
Humdrum global economics, local political jitters in the run-up to Mangaung, tight lending, weak potential for GDP growth this year, a manufacturing and mining under pressure conspire to have house price growth consolidate for the next 24 months. Our position is that real house price growth (with CPI averaging 5,5%) will contract by 0,8 and 1,2% in 2012.
Tough decisions require unadulterated and comprehensive information. To that end, Knowledge Factory is committed to supplying sophisticated, current data to assist buyers, sellers and property professionals make informed decisions.”
Market characterised by:
| 12 o'clock Seller’s Market |
3 o'clock Mid-Market UP |
- Healthy economic growth rate
- CPI within the target band (3-6%)
- Low unemployment
- Low interest rates
- Business confidence high
- Disposable income high
- High demand for property
- Shortage of properties for sale
- Properties stay on market a short time
- Sellers regularly achieve asking price
- Average property prices increasing
- Increasing sales volumes
- Construction levels high
- Many new developments
- Many first time buyers
- Easy access to mortgage bonds
- Average age of buyers decreases
- Tenants enjoy lower rental
- Many estate agents
- Few repossessions or distressed sale
|
- Slowing economy
- CPI and interest rates increasing
- Credit extension getting tighter
- Properties taking longer to sell
- Lower demand and lower house prices
- Construction slowing
|
| 6 o'clock Buyers’ Market |
9 o'clock Mid-Market DOWN |
- Slow economic growth rate
- CPI higher than target band (3-6%)
- Unemployment high
- Interest rate hikes to curb inflation
- Business confidence low
- Low demand for property
- High stock levels
- Many distressed sales
- Banks auction off repossessions
- Cash-flush investors - Bargain prices
- Sellers seldom achieve asking price
- Properties stay on market a long time
- Construction slows dramatically
- Average age of buyers decreases
- Fewer first time buyers
- Disposable income low
- Very high debt levels
- Landlords enjoy higher rental
- Average property prices decreasing
- Minimal new construction
- Few estate agents
|
- Improving Economy
- CPI and interest rates decreasing
- Credit extension looser
- Properties selling faster
- Demand improves. House prices increase
- Increasing construction
|