Property markets across Western Cape shifting gears in 2022
Category Cape Town Property Market
The Quay 1 International Realty research team has noted a significant shift in the Western Cape property market in the first quarter of 2022 compared to last year. The company notes that the last time the Cape Town market experienced such a dramatic adjustment was in 2014, when the property market quickly transitioned into a bull run for the four years that followed.
Notably, during this period, the most significant moves the market saw were the increase in the number of cash transactions, high-value deals, stock shortages as well as an increase in positive consumer sentiment.
In the first quarter of 2022 the Quay 1 team, comprised of over 100 property professionals, recorded a 20% increase in cash transactions year-on-year. Many of these sales occurred in the market's luxury segment across the board.
Primary factors currently contributing to these shifts are a revitalised economy following relaxed Covid-19 measures globally, historically low-interest rates, a flock to safe haven investments amid volatile global stock markets, and a renewed positive sentiment amongst consumers. Globally-focused investors also appear to be confident that local returns in rands will not be wiped out due to currency depreciation, which is often a contentious issue when allocating capital within South Africa.
Residential and commercial property prices remained subdued between 2018 - 2021 and are, in many cases, coming off a low base. Should markets continue to experience the above factors, we feel it's likely that it could move into a bull run and shift into more of a sellers market moving forward.
Interested to know what your property is worth in the shifting market - click on the link below to get in touch with an area specialist broker, or to generate a data rich digital valuation.
Author: Quay 1 International Realty
