Johannesburg Home Sales Boom as Downsizing Trend Gains Momentum

There has been a home sales boom in Johannesburg despite challenging market conditions. IOL reports that rising municipal property rates and increasing utilities, security, and maintenance costs are pushing some Johannesburg residents to sell their large homes and move to smaller units. However, this trend has not dampened the overall property sales activity, and the city remains the ‘engine room’ of the South African economy.

The demand for new sectional title developments has been rapidly increasing, indicating a shift in housing preferences among residents. Many ambitious young people from smaller towns and less developed regions are moving to Johannesburg for employment and a better lifestyle, further contributing to the city’s property market.

According to Rory O’Hagan, the principal of Chas Everitt International’s Sandton and Hyde Park office, which serves the city’s northern suburbs, their office has achieved more than R100 million in registered property sales each month since January. Interestingly, most of these sales fall into the R2 million to R5 million price bracket. This information indicates the market is seeing strong activity in the mid-range segment.

Also read: Shift in Property Market Favours Buyers Across Most Areas

Despite the challenges posed by the pandemic and the highest interest rates in nearly fifteen years, the property market in Johannesburg remains resilient. There is still “strong interest” among buyers returning to Johannesburg after moving to less-populated inland and coastal areas during the pandemic.

Moreover, the market is also creating “exceptional purchase opportunities” for individual and corporate buyers who have the means and desire to acquire larger homes in the most desirable suburbs. These properties are sought after by families, home businesses, and foreign executives working in South Africa on three- and five-year contracts.

As the cost of living increases, many bondholders look to downsize their homes to make their money go further. Downsizing can be a practical financial decision if homeowners underutilise the property or the homeowner’s lifestyle needs have changed. However, it is essential to carefully plan and consider factors such as space requirements and furniture suitability before moving.

Also read:

City of Johannesburg Encourages Pensioners to Re-Apply for Property Rate Rebates

Picture: Twitter / MontoediS

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