2021 - An Interesting, & Bumper Year For Residential Property
Category Property News
2021 was certainly an interesting year for the residential property market. Soaring sales, levelling prices, booming rentals, a growth in foreign investment, a semigration surge, increased demand for micro-living, and a growing call for mixed-use developments are amongst the trends seen in the past 12 months.
This is according to Alexa Horne, Managing Director of DG Properties who says that the industry rallied after the interest rates were cut and enjoyed robust sales throughout the year, despite the many financial challenges created by the pandemic. The low interest rates also added further allure to the many well-priced properties that were on the market in 2021.
"The onset of Covid saw the asking prices for homes flattening out to more realistic levels after a period of exponential growth - and there were great deals to be found," says Horne. "Initially we were seeing many first-time home buyers taking advantage of these favourable conditions, however, we then experienced a steady increase of buyers across the board in all price brackets."
"Another factor driving sales was a surge in semigration this year, particularly following the unrest in July, with many buyers relocating to Cape Town from Gauteng and Kwazulu Natal. Excitingly, there has also been many foreign buyers purchasing property in Cape Town through 2021. It is wonderful to see international investment returning to the South African property market, and indicates the value offered by our local real estate, together with the quality of life to be experienced in the Cape," says Horne.
"Another trend that DG saw during this year is a growing demand for micro-living, which is increasing in popularity in South Africa for a variety of reasons. Amongst these are changing lifestyles, with younger people looking for location over square meterage and wanting to be close to the city centre - not wasting time on commuting."
Micro-living developments usually enjoy prime locations near key employment and entertainment nodes in CBDs of major cities and universities - often in areas where development space is highly limited. This adds to the appeal of these apartments - which are also affordably priced. In addition to millennials and students, micro-apartments also appeal to young working professionals, business travelers, and the newly retired who are downscaling.
Coupled with a demand for micro-living, the development of mixed-use buildings as an urban living trend is growing hugely in popularity in South Africa as buyers seek out affordably priced apartments, coupled with the lifestyle and convenience that mixed-use developments offer residents.
Paul Upton, who heads up new developments for DG Properties, explains that mixed-use developments blend commercial office space with retail and residential living, creating an all-in-one location that is built for convenience. "But their attraction doesn't end there: mixed use developments also create exciting investment opportunities with the option of attractive rental returns as most are situated in central urban spaces, so the demand from potential tenants is high."
"Amongst the sales made this year by the DG team are some stand-out deals such as a home in Kloof Road that sold for R72 500 million. Two homes sold in Ocean View Drive for R62 million and R30 million respectively, and an apartment at the V&A Waterfront sold for R31.2 million. We also sold a home in Bishopscourt for R48 million, and one in upper Constantia sold for R26 million."
And it is not just sales that boomed this year. According to DG, high-end rentals also experienced a surge in Cape Town, with the rental team having concluded deals such as two houses in Camps Bay for R180k and R85k per month, two rentals in Fresnaye for R130k and R75k respectively, an apartment at Bantry Hills for R70k per month, another nearby in Bantry Bay for R45k, and two rentals in Upper Constantia for R87k and R80k per month. "We also secured a short-term rental for R240 000 per month for four and a half months over the festive season," says Horne.
"It has been a good year for real estate, despite the ongoing challenges brought to us through Covid and other factors. DG has equipped ourselves to handle the growing demand for property by employing additional property agents and we recently opened new offices at Cavendish Links to accommodate the increasing popularity of the Southern Suburbs. We look forward to, another successful year in 2022," concludes Horne.
Author: PR
