Just a third of estate agents in South Africa reached their sales targets in terms of volume and value in 2024, slightly down on numbers recorded in 2023. But expectations are high for 2025, with 86% of Estate Agents anticipating they will reach volume targets, and 85% saying they’ll reach value targets.
So, what will make an impact on the market and help steer sales up?
Estate Agents say younger buyers will play an increasingly important role in South Africa’s residential property market in 2025, as will unemployment and political certainty.
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Lightstone’s recently conducted annual sentiment survey among Estate Agents also found that while economic uncertainty remained a priority issue, it was viewed as marginally less important than twelve months previously, perhaps indicative of increased confidence in the Government of National Unity’s stewardship of the economy.
Estate Agents also have placed greater emphasis on the role foreign investors will play, while the tourism industry remains an important factor in residential property sales.
2024 sales assessment
The past twelve months have been challenging for most Estate Agents, with nearly two thirds (61%) saying they did not meet their sales targets in terms of volume in 2024, significantly up on 45% in 2023. Similarly, the numbers were almost the same when measuring the value of sales.
Did you reach your 2024 sales targets?
Looking ahead to 2025
Despite underachieving in 2024, Estate Agents are looking forward to a much improved 2025 with 86% expecting to reach their targets in terms of volumes and 85% expecting to reach their targets in terms of value. These expectations are well up on the 73% and 72% expressed twelve months ago.
The South African Reserve Bank (SARB) cut interest rates twice in 2024, and expects to make further cuts in 2025, which should help boost the property market. The continued success of the GNU will provide stability and confidence.
Do you expect to reach your sales targets in 2025?
What buyers are looking for … and why sellers move on
Lifestyle and amenities, and security, top the wish list of home buyers – but the categories have traded places, with 33% (25% in 2023) saying lifestyle and amenities were most important with security next at 19% (33% in 2023). Working from home remained constant at 19% while buy-to-rent has nearly doubled from 6% to 11%.
What buyers are looking for
Downscaling property size because of lifestyle changes was the main reason for sellers wanting to move on, followed by downscaling due to financial difficulties and relocating to another province (16%) or city or town (11%). Sellers emigrating dropped from 16% to 9%.
Sellers’ reasons for moving on
