He commented on the state of the property market in South Africa, "To say that it’s been a tumultuous year for the planet is definitely an understatement. Yet, in the face of a sluggish and uncertain domestic and global growth environment, and ongoing socio-political challenges, the residential property market in South Africa continues to exhibit extraordinary resilience. It remains one of the few bright spots in an otherwise relatively lacklustre economy". Golding attributes the strength of the housing market to the "continued vibrancy of the country’s major metro areas. This coupled with an ever growing preference for property as a class asset at a time of extreme financial market volatility".
"Despite many thinking the price of property lies in the hands of the economy, it is in fact the location that matters the most", says Golding.Golding cited recent research released by Lightstone, when he concluded that the suburb that a property is located in is more important than the state of the economy. This determines how long a property will usually take to sell.
“One possible explanation for Gauteng’s relative price underperformance is the fact that the region is better able to meet growing demand for new housing”, says Golding. “Unlike Cape Town, where the geographic limits created by the coastline and mountains hamper the creation of new housing stock, creating a persistent shortage of stock in prime areas, Gauteng has been able to expand outwards in order to meet housing demand”.Secure estates such as Steyn City and Dainfern remain resilient and popular even in tougher trading conditions. This, while we are noting an increase in the number of renovations and rebuilds in some of the more established estates. With its convenient airport access, avoiding considerable traffic congestion, Lanseria is experiencing significant land sales. As a result, and due to their popularity with first-time buyers, the company has seen a continued preference for sectional title properties over free-standing ones.
"During the past five years, freehold properties have risen by an average of 22.1% in Port Elizabeth and 29.2% in East London", says Golding.The massive new wave of economic investment, coupled with a new local government, suggests that the Eastern Cape housing market will experience a renewed bout of growth in the months ahead.