With the new prime lending rate now at 10.75% the optimists amongst us argue that the interest rate upcycle has more or less normalised to pre-Covid levels and aside from one or two very minor possible adjustments, the prime lending rate has stabilised. Be that as it may, as we regard the post-Covid property landscape, we ask ourselves: “What has changed?” and “Does the mantra: ‘Location, location, location’ still apply?”.
Below are several property trends that have changed how and where people choose to purchase property and live.
Remote/hybrid working
As we all know, necessity is the mother of invention. But nobody could have anticipated that remote working-from-home (or hybrid at a push) would still be the ‘new normal’ in 2023. And while the jury is still out on whether or not we will ever return to the ‘old office-bound ways of work’, this new work-life balance without the commute, has created a mind shift in how and where we can now live, work and play.
Online shopping
Online shopping has brought the convenience of shopping at the click of a button into our living rooms, 24/7. From groceries to major appliances, South African retailers are vying to sell and deliver goods nationwide to your very doorstep. This has substantially, perhaps permanently changed consumers’ reliance on living in densely populated urban epicentres, in close proximity to brick-and-mortar retail and commercial hubs.
Desperately seeking solar
With Eskom continuing to hamper our economy due to ongoing load shedding, many of us are forced to go to bed – and wake up to yet another round of load shedding. Our Leadhome estate agents report that market demand for off-grid homes has risen tremendously with self-powered homes selling faster and fetching significantly higher prices.
Green homes, with boreholes and Jojo tanks understandably also rank high on buyers’ lists as despite heavy rainfall, water restrictions and water outages are an ever-present concern.
Semigration vs. reverse semigration vs. emigration
Semigration to the Western Cape and other coastal regions emerged as one of the biggest trends of 2022. Word has it that while the numbers have yet to be officially counted, the trend is continuing. A recent correction of this is reverse semigration – the permanent moving back of more affluent buyers to Gauteng, who are purchasing residential property or setting up commutable city bases from which to work, close to major business and financial districts.
We are often asked about emigration. Allow us to show you what R1.5 million buys in the following destinations, as compared to South Africa. You can then decide for yourself if the grass is greener on the other side.
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