Seeff- Hartbeespoort and Brits property market stable as we head into summer
Despite mounting economic challenges and rising interest rates, the Hartbeespoort and Brits property market remains stable. In fact, Seeff has enjoyed a record year with over R200 million in sales with our turnover up by 120% compared to 2021.
There is still a strong desire among South African property buyers to look for property in areas where they can enjoy maximum lifestyle benefits. Where better to enjoy the best of the South African country life than in the Hartbeespoort and Brits area.
Our areas have a lot to offer whether you want to live here permanently or invest in a weekend or holiday home. The proximity to the Johannesburg and Pretoria metropolitan areas makes it an easy commute.
2021 was a record year with 946 transactions and Lightstone data shows that total transactions for the area for the 12-months to the end of September already stands at close to R1.5 billion. We also continue seeing great interest in the luxury estates around Hartbeespoort including The Islands, Xanadu, Magalies Golf Estate and more.
Aside from the semigration trend which continues to find favour with buyers looking to escape the busy cities, more people are buying second homes. According to mortgage originator, ooba, investment into investment and rental homes reached almost 8% of all bond applications in August 2022, the highest since 2009.
In terms of the broader property market, we do now have to contend with higher interest rates as the latest hike has taken the rate back to the normal level that it was in January 2020, just before the onset of the Covid-19 pandemic.
Economists and property commentators continue cautioning around inflation and the impact on the interest rate. FNB expects another rate hike in November as the Reserve Bank will look to counter inflation.
The weaker economic climate also continues to put pressure on property prices. According to the FNB Property Barometer, price growth continues to decline. They forecast a growth rate of around 3.5% for 2022 compared to the average of 4.2% for 2021, and expect around 3.4% for 2023.
The impact of declining price growth and potentially fewer sellers is that asking prices will come under increasing pressure. These days buyers are well informed about trends in the market, and we are potentially going to see buyers looking for more negotiability.
In terms of the overall market, there has been a normalisation from the record high volumes of mid-2020 to mid-2021, although it is generally still performing at above pre-pandemic levels. Interestingly, Lightstone (a data company which tracks all Deeds Office transactions) reports that while the number of transactions has reduced, there value of transactions is up as more high value properties transacted.
As we have seen over the last two years, there is still strong confidence in the property market, and we expect that the market will hold out for the time being. The Hartbeespoort and Brits areas continue offering good stock for sale with prices from around R400,000 for vacant land, from R780,000 for apartments and upwards of R1.7 million for houses.
The gated estates remain popular and offer quality homes from around R2,2 million to around R6 million for a luxury home.
Choosing the right property agent makes the difference between sales success and your property staying on the market. Seeff’s results speaks for itself. Our sales are up by 120% for the year and we have already achieved over R200 million in sales for our clients. It again confirms that working with the right agency makes all the difference for sellers and buyers who trust the Seeff brand.