The luxury property market is thriving, driven by positive sentiment and resulting in a shortage of prime location stock, pushing prices higher, according to Dr. Andrew Golding, Chief Executive of the Pam Golding Property Group.
Recent high-end sales by Pam Golding Properties include homes in Clifton and Camps Bay sold for R66 million and R60 million, respectively, and properties in Constantia for R45.5 million and R54 million.
Other notable sales include a R34.5 million home in Val de Vie, a R23 million home in Pearl Valley, and several high-value transactions in Steyn City, Fourways, and Cornwall Hill, Pretoria.
In KwaZulu-Natal, two beachfront homes in uMhlanga sold for R17 million and R15 million.
In October 2024 alone, Pam Golding Properties said it achieved total sales of R2.35 billion, a 15% increase from the previous year, indicating a strong market as we approach the summer season.
The property group also pointed to the following trends in the market:
Semigration: Post-pandemic, semigration surged, with 68% of semigrants relocating to the Western Cape in 2023. Although 2024 saw a decline due to high interest rates and expensive homes, 25% of homeowners still relocate to another province, with Gauteng and the Western Cape leading this trend.
First-Time Buyers: First-time buyer volumes dropped by 20% in 2023 but are recovering as economic conditions improve. Pre-qualification significantly boosts approval rates for these buyers.
Estate Living: Demand for estate living remains strong due to quality of life and security. Estates now cater to a broader audience, with 15% of all home sales in 2023 located within estates. Gauteng leads in estate home sales, followed by the Western Cape.
Buy-to-Let Properties: Investment property demand has risen since late 2021, particularly in the Western and Eastern Cape and Tshwane.
Mixed-Use Developments: There is a growing trend towards developments that combine residential, retail, office, and recreational spaces, maximizing utility and convenience for residents.
Growth Areas
The formation of the GNU has positively impacted financial markets, with regions benefiting from governance changes seeing increased activity. The Western Cape remains a top performer, with growth in the Northern Suburbs and smaller towns along the coast. KZN and Gauteng are also experiencing a rebound in residential activity, said Golding.
Foreign Buyers
Interest from international buyers has increased since 2023, with notable sales to buyers from the UK, Germany, US, and other countries. Popular areas include the Western Cape, KwaZulu-Natal, and Gauteng.
Equally, South Africans are investing in international properties for residency and citizenship programmes, particularly in the EU, Mauritius, and Seychelles. The Greek Golden Visa programme has been popular, and Pam Golding Properties has expanded its global reach with a new presence in Paris as a result.
Pam Golding Properties said it continues to see strong demand across various market segments, driven by economic improvements and positive sentiment.
Kommentare