Inspired by the Springboks' winning streak, South Africans are rallying together in a surge of national pride. Property experts believe this newfound patriotism could boost the country's housing market, as people become more optimistic about South Africa's future.
Nestled amidst the scenic landscapes of Limpopo, Polokwane stands as a vibrant economic hub in northern South Africa. Its strategic location, neighboring the Kruger National Park and bordering Botswana and Zimbabwe, fosters a dynamic commercial environment. Once named Pietersburg, Polokwane transforms into a captivating spectacle during springtime, adorned with a profusion of jacaranda and coral trees in full bloom. Renowned as a hunter's paradise, Polokwane proudly hosted matches during the 2010 FIFA World Cup, further cementing its reputation as a thriving city.
The housing market in Polokwane exhibits stability, with average house prices trending upwards annually. However, the cost of first-time buyer properties has seen a rapid increase in recent years, jumping from R918,500 in July 2022 to R1.295 million in March 2023. This sudden surge has propelled Limpopo's average first-time buyer price beyond the national average purchase price per unit. Polokwane's affordability and robust economic growth have made it an attractive destination for both first-time buyers and investors, with projections indicating a significant rise in population influx.
The economic landscape of Polokwane is poised for continued expansion, with a pipeline of major projects set to transform the city and its surrounding areas. These include new office parks, an international convention center, a state-of-the-art hospital, a technical university, and affordable housing developments.
Adding to the allure of Polokwane is the recent opening of "The Greenery," a multi-million Rand lifestyle shopping center that caters to the discerning tastes of the city's residents. This development further enhances Polokwane's appeal as a dynamic and desirable place to live, work, and raise a family.
Aspiring homeowners with constrained budgets often envision themselves upgrading their residences in the future, ultimately settling in upscale suburbs like Bendor Village, Woodhill Estate, Eagles Crest, Waterberry Estate, Marula Heights, North View, or Woodlands Estate. Polokwane's entry-level housing market caters to these aspiring homeowners, offering bachelor flats and affordable houses in neighborhoods such as Bendor Extensions and Southern Gateway.
Successful businesspeople gravitate towards Bendor, a prestigious neighborhood renowned for its upscale Mall of the North, esteemed schools like Heuwelkruin and Mitchel House, and cutting-edge office parks. Residents are drawn to the vibrancy and promise of appreciation, evident in the suburb's range of impeccably maintained luxury homes, priced from R2.5 million to R20 million. Many of these exceptional residences are nestled within secure estates like Broadlands, offering an unparalleled lifestyle.
According to Property 24, Polokwane's property statistics show that there is a slight upwards trend during the last couple of years regarding the annual number of sales registered in the Deeds office, with 3260 sales recorded during 2023 thus far and 3066 sales during 2022.
Some positive news is that in accordance with market expectations, the South African Reserve Bank unanimously decided to maintain its benchmark repo rate at 8.25% on 23 November 2023.
Despite the stability of the repo rate, economic pressures are likely to persist due to ongoing loadshedding. Lightstone Property's analysis also reveals a slight increase in national year-on-year house price inflation to 3.88%. While property inflation remains stable in the Free State and KwaZulu-Natal, it has increased in Limpopo, Mpumalanga, North West, and the Western Cape, but decreased in the Eastern Cape, Gauteng, and the Northern Cape. In South Africa in general, buying activity has been slowing down across all price ranges. There is also currently a trend of downsizing in the market, with increased activity in the lower-priced housing market.
The housing market performance is intrinsically linked to the broader economic circumstances. While it is impossible to say with any certainty what lies ahead, all signifiers currently point to 2024 being a year of slowed growth.
If you're considering selling your home, it's crucial to price it accurately to attract buyers in today's market. As affordability challenges have reduced the pool of buyers in lower to middle-income segments, sellers face increased competition. To navigate this dynamic, seeking assistance from an experienced real estate professional is highly recommended. Their expertise can help you accurately value your property and effectively navigate the selling process to achieve a successful outcome.