The latest FNB Property Broker Survey for the first quarter of 2024 examines sentiments and factors influencing the commercial property market in South Africa.
Brokers in major metropolitan areas such as Johannesburg and Ekurhuleni (Greater Johannesburg), Tshwane, eThekwini, Cape Town, and Nelson Mandela Bay participate in this survey which aims to gather opinions on factors affecting "movement and sales activity" within the Owner-Occupied Property market.
Respondents provide insights into multiple factors influencing property sales, acknowledging that the cumulative percentage may exceed 100% due to owners selling for multiple reasons.
According to John Loos, a property strategist at FNB, while not entirely precise, this approach provides a broad overview of market trends.
In the first quarter of 2024, primary motive for selling continues to be the search for more reliable utilities and services, such as electricity, water, or well-maintained infrastructure. This motive has remained consistent since the first quarter of 2023.
Currently, 43.7% of transactions cite this reason, marking an increase from 37.5% in the fourth quarter of 2023. However, it is lower than the peak observed in the first quarter of 2023, which was 49.3%.
The significant rise in load shedding towards the end of 2022 appears to have been the primary driver behind the sudden increase observed in early 2023. Loos noted a subsequent decline in this trend, attributing it to a reduction in load shedding.
However, recent upsurges suggest that the reasons extend beyond just load shedding. Loos said that the country's escalating water challenges and deficiencies in other services and infrastructure could also be major contributing factors.
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