Trends offer an insight as to where an industry is headed for the coming year. It gives us insight into what can shape a sector and create data to inform a buyer’s behaviour. This is why each year, property investors look at what trends shape the sector before they go ahead and search for property.
Today we take a look at the six trends that are shaping the property market in 2019.
Affordability is key
The cost of living in South Africa is too high and people are looking to be frugal when it comes to what they spend their money on. For new and repeat investors, getting value for their investment is vital. Investors and buyers would like to see how their money is working for them, which is why they’re looking at plenty of factors before selecting a property that will yield the best benefits and for investors, the best profit.
Psychologists are calling this the ‘burnout years’ and more people are starting to focus on slowing down and living a stress-free life. This aspect has been translated into the world of property. Towns that have usually been deemed holiday destinations are now seeing an influx of permanent residents. People are moving away from the hub of urban areas and seeking a more tranquil lifestyle.
With load shedding concerns and the Cape Town drought scare last year, buyers and investors are looking at homes that offer easy energy and water saving solutions (solar panels, water tanks, etc.).
Buyers are getting younger
It’s been said that the average age of first-time homebuyers is 37-years-old but we may see the average decrease in age. What are young buyers looking for? Small-sized homes because they’re saving for travelling and other expenses. Developments like micro-units are popular because it’s the affordable option, especially if you’re living in an urbanised area.
Because buyers are younger, they’re looking for property to suit their lifestyle. These are properties that are located in close proximity to work (possibly within walking distance or a bike ride) but also nearby restaurants, bars, gyms, and shopping centres.
Most of those who are retired have kids who have moved out of the house. This means that they are looking to downscale their lifestyle during their retirement years. Ideally, retirees are looking for developments that cater to their needs or smaller properties that are manageable.
2019 is going to be an interesting year for the property market. If you’re looking to take advantage of the trends, book your seat at our free property investment seminar today and find out how you can start investing in the South African property market.