Six major trends influencing the SA property industry in 2019
Category Industry News
We put together six major trends expected to influence the South African property industry in 2019, from technology to rising interest rates.
- Technology will continue to transform the industry
Technology has transformed the way we work in the real estate industry, and we can expect to see this trend continue into 2019. Trends such as machine learning, predictive analytics, targeted social media campaigns and virtual reality are helping industry leaders and emerging real estate start-ups innovate boldly.
- Impact of Interest Rate Hikes
Interest rates play a critical role in how the property market behaves. With an interest rate hike in November 2018 and a further increase forecast by economists for the first half of this year due to slow economic growth, buyers are expected to remain particularly cautious with many choosing to hold off until rates improve and continue renting.
- Growing demand for Estate/Complex living
Buyer demand for Estate/Complex living is expected to climb further in 2019. Buyers are attracted to the secure, convenient and lock-up-and-go lifestyle offered by Estate/Complex living. The variety of recreational facilities and amenities offered by many of these estates offers additional convenience to busy executives and families.
- Continued attraction to city "hubs"
Buyer demand for properties in suburbs close to city hubs such as Rosebank, Melrose Arch, Sandton, Fourways, Menlyn, will remain robust in 2019. These properties offer a strong investment opportunity, even in a slow market.
- Gen Z buyers enter the market
Following hot on the heels of millennials, Generation Z (defined as people born from the mid-1990s to the early 2000s) buyers are expected to start buying homes en-masse within the next five to 10 years as their spending power grows. This tech savvy and well-researched demographic of buyers will enter the market as first-time buyers and will predominantly be seeking smaller, more affordable lock-up-and-go sectional-title units.
- Eco-friendly homes see rising demand
Significant focus has been placed on 'sustainable living' in recent years from the food we eat to the way we live. This has bolstered buyer demand for sustainable or eco-friendly homes, particularly among millennials and Gen Z buyers. South African buyers are specifically seeking solar heating, water harvesting tanks such as JoJo Tanks, sustainably sourced or recycled building materials and environmentally friendly LED lighting.
Author: Adrienne Hersch Media Team