Property Market in 2020
Nobody was sure what would happen in the property market in 2019, it was fair to say that majority of property owners had doubts. According to Lightstone House Price Index in October 2019, over the past few years the Western Cape's performance was unrivalled in South Africa, but its slowdown in the last two years has seen it come second to the optimistic Limpopo province that is now growing at 5.9%. Current house price inflation is at 4,5% for the Western Cape, but what does this mean for 2020?
It is important to understand property market cycles in South Africa which indicate that we will most probably experience a more balanced market next year. Sellers' expectations and buyers' confidence will be more aligned resulting in more fruitful transactions. The Northern Suburbs of Cape Town is expected to grow at an average steady rate of 5-6% per annum.
Author: Andre Kritzinger