The property market in South Africa has had a bit of an unpredictable year.
People have been struggling to offload high-end properties, often having to settle for below-asking price.
Meanwhile, the ‘semigration’ trend has taken hold, which means that the property market in smaller, beachside towns like Plett and Arniston is booming.
Last month it looked like things could be improving across the board, as prices stabilised.
Now it looks like sellers looking to put more affordable houses on the market could be in luck.
Business Insider SA looked into the FNB Affordable Housing Insight for the third quarter of 2019.
South African residential properties priced between R250,000 and R500,000 are experiencing a strong third quarter, with some properties sold at 5% above asking price, a new report from FNB revealed.
Only a third of the properties in the same price range, also called the ‘gap market’, sold for below the initial asking price, compared to 95% of properties in the higher end of the market.
On average, properties in the R250,000 to R500,000 bracket remained on the market roughly 6 weeks, with 13 average viewings.
In the higher-end market, properties spend 16 weeks on the market with 9.6 average viewers.
In other words, affordable housing is on the up and up if you’re looking to sell, or build property to sell, in the coming months.
“Prospective home buyers are looking and finding value in affordable housing. We believe that a better pipeline of supply, especially within the gap market, will go a long way to improving home ownership in our country,” FNB Home Finance CEO Lee Mhlongo said.
You heard them. Get in there early, property developers.
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