Main image: Working remotely resulted in many homeowners relocated to peripheral suburb areas or smaller towns
Despite the uncertainties surrounding Covid-19 and the ensuing lockdowns, the residential property market has proven to be one of South Africa’s more resilient sectors, says Dr Andrew Golding, chief executive officer of the Pam Golding Property Group.
In 2021 buyers were motivated by the interest rate cuts, but also by the ability to relocate due to working from home – thus the desire for a larger home and/or more relaxed lifestyle resulting in a so-called Zoom Boom.
Some of the trends and factors of the 2022 housing market include:
- Interest rates: These are likely to be moving higher, but the slow pace suggests it will remain a benign environment for the housing market, with interest rates expected to rise gradually.
- Affordability: The surge in first-time buying demand faded, as the effects of the aggressive interest rate cuts early last year abated.
- Co-living and merging of residential and commercial: The co-living trend continues to gather momentum. Businesses must be as flexible as possible, so co-working remains popular, as does co-living.
- Conversion of office space: The conversion of office space into residential and/or the mixed-use model, as businesses become more flexible to survive in the pandemic economy.
- Business hubs: People come to the office occasionally, but the office needs to be in a prime and accessible location.
- Fading Zoom Boom, but semigration prevails: The Zoom Boom emerged during the pandemic – the realisation that working remotely meant that you were able to live anywhere. This prompted many homeowners to relocate to peripheral suburb areas or smaller towns.
- Estates remain popular: Homes in estates remain in high demand and buyers will pay a premium for a sought after, secure estate.
- Multi-generation living: The need for flexibility amidst challenging economic conditions suggests that multigenerational living will continue to gain popularity.
- Going off the grid: There is an ongoing desire to go off the grid with the installation of energy and water-saving solutions, which are now becoming the new normal.
It is apparent that if you can live and work anywhere, it makes sense to live somewhere with a better quality of life in a more desirable location.
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