The Rawson Property Group’s offices across the Helderberg region have reported a 27% increase in business compared to the same period in 2017. According to Schalk van der Merwe, franchisee for the region, this is a very promising sign of things to come, and could well be the beginning of a market resurgence if consumer confidence remains strong.
“2017 was a tough year, politically and economically,” says van der Merwe, “with presidential scandals, cabinet reshuffles, widespread corruption, junk status and general municipal mayhem taking a huge toll on investor and consumer confidence. That put more strain on an already underperforming national property market, causing price stagnation and deflation in many parts of the country over the course of the year.
“We were lucky to avoid the worst of it, here in the Helderberg,” he continues, “and saw surprisingly solid growth on average with a few pockets of really excellent performance. Market activity towards the end of 2017, however, took a noticeable dip.”
Van der Merwe attributes this late-term deceleration to investors, businesses and first-time buyers waiting on the outcome of the ANC’s presidential elections before making any long-term investment decisions. The renewed interest from these categories of buyers that has been evident in the Helderberg following the election of Cyril Ramaphosa and the February 15th resignation of Jacob Zuma would appear to support this theory.
“Investors and first-time buyers are definitely getting back in on the action,” van der Merwe confirms, “but they’re not quite at full force yet, and are still very price sensitive. We’re waiting for momentum to start building again, but for now, there’s no major sense of urgency from buyers. We have a good variety of stock available to choose from, and people are taking their time to weigh up options and make smart property decisions.”
While this would, in some spheres, be considered a buyers’ market, van der Merwe warns that using such labels can be dangerously misleading.
“We’re in a transition period where trends can fluctuate quickly and dramatically from area to area,” he explains. “Here in the Helderberg, it’s not unusual for one part of a suburb, one type of property, or one development to perform very differently to the norm. Trying to apply generalisations like buyers’ or sellers’ markets underplays the importance of these hyperlocal trends, and can lead both buyers and sellers into making expensive and unnecessary mistakes.”
Van der Merwe predicts that growth over the rest of 2018 will be slow and steady in the Helderberg, rather than rocketing up overnight. General moderating influences include the inevitable waning of “Ramaphoria” and the reversion of the rand to more realistic levels, while local factors include the ongoing Western Cape water crisis.
“It’s not all smooth sailing ahead, but we have a lot to look forward to in 2018,” he says. “I expect the government’s focus will be on consolidating the changes that have already been set in motion and stabilising our economy to continue to improve investor confidence and economic growth. This should create a very positive environment for propertyinvestment but could take some time to filter down into the market. The rewards may only really start to reflect later in the year.”
For speculators hoping to get in early on the upswing, van der Merwe highly recommends contacting a reputable agent to assist in assessing options.
“Publicly available information and statistics seldom give the full picture,” he says. “To get the most out of the opportunities out there, you need someone experienced with an ear to the ground.”
To find out more about property trends and opportunities in the Helderberg region, get in touch with Rawson Properties Helderberg on 021 851 2656.
