What to Watch Out For in the 2023 Property Market
COVID-19 forever changed our world, and the property market was no different. Changes in interest rates and a move to remote work made big impacts on residential real estate, with more people buying houses and greener spaces being in high demand. With interest rates returning to pre-pandemic levels, the property market is likely to change again, although there are some things that might be here to stay. In this article, we'll tell you what to expect in the 2023 property market, and make sure that you're set up for success!
Semigration Will Continue - Or Reverse!
Semigration is when people move within their country from one city or province to another. It's most common among middle-aged and older buyers, specifically for those aged 46 and over who can afford to make the move. In South Africa, this has largely been seen in people moving from bustling, business-oriented cities like Johannesburg to cities like Durban and Cape Town that have the draw of more scenic landscapes and better quality of life.
Semigration became particularly popular with the rise in remote working that was seen during the pandemic. With more and more companies returning to in-office work, the property market might see people returning to their original cities. However, the pandemic seems to have fundamentally changed the demands within the real estate industry, with most buyers looking for safety, space and a place to relax. Pre-pandemic markets found that properties in city centres, close to work and offices were in high demand. Even with the return to offices experienced by many South Africans, the current predictions are that larger living spaces will continue to be in high demand.
Estate Properties Are in High Demand
Recent years have seen some significant increases in violent crimes and protests in some parts of the country, and many municipalities and cities have seen declines in the maintenance of infrastructure. With roads worsening, public spaces becoming crowded or unusable, and crime on the rise, South Africans are searching for properties that will help them manage these risks.
Because of this, estate living is in high demand, and experts predict that this demand will only increase. Luxury estates that offer sub-urban or country-style living while still maintaining the comforts of city life will become especially popular among high-income buyers. Even young professionals, who may not have the income for luxury estates, are showing an increased interest in estate living where the infrastructure is well-maintained, and safety is ensured by the estate itself.
Green Living Spaces Will Continue to Grow in Popularity
While a return to office-based work is on the rise in the country, the pandemic showed people how wonderful it is to live in green spaces where there is room to breathe. Many people found a new hobby in gardening, hiking, and the simple joy of being outdoors during the pandemic and recent predictions suggest that this focus on the outdoors is likely to continue for the foreseeable future.
A desire to be in nature is not the only way in which South Africans are going green in the property market. With recent increases in load shedding and electricity prices increasing, South Africans are placing increasing importance on eco-living. From solar panels to smart homes, experts predict that the market will see an increase in demand for environmentally friendly living, as well as the convenience and cost savings offered by automated homes that control temperature, lighting, geysers, and curtains.
Summary
While the pandemic saw an influx of new home owners into the South African market, and changes in the types of property demanded, the post-pandemic period will see some of the market return to previous levels. Increases in interest rates will likely have lower-income buyers returning to pre-pandemic demand levels but middle and high-income buyers are likely to show permanent changes in what they're looking for in a home. Most notably, the market will continue to show high demand for increased access to the outdoors and green spaces, with eco-friendly living and safety and infrastructure requirements becoming more important to these higher-income groups in 2023.
