Provincial moves, market resilience, and rising prices
In this month's newsletter, discover why one in four homeowners choose to sell and buy in a new province, with Gauteng and the Western Cape leading this migration. We also explore signs of resilience in the property market despite a sluggish first half in 2024, highlighting a decrease in negative sales and a slight uptick in first-time buyers. Lastly, our latest House Price Index reveals the current property inflation rates, with notable increases in the Low-Value segment and stable trends across key provinces.
One in four residential property sellers buy in a new province
Latest data reveals that a significant 27% of homeowners who sell and then buy a new home choose to do so in a different province, a notable increase from 16% in 2019. Gauteng and the Western Cape dominate this sell-to-buy market, accounting for 48% and 23% of transactions, respectively. The Western Cape remains the preferred choice for those switching provinces, particularly among older homeowners leaving Gauteng, while younger homeowners tend to stay in Gauteng.
Read MoreSigns of resilience in SA's property market
Lightstone's latest analysis shows that while both the volume and value of residential sales are slightly down in the first half of 2024 compared to the same period in 2023, there are positive signs that the property market could soon benefit from a more stable environment, such as a decrease in the proportion of negative sales and a marginal increase in first-time buyer numbers.
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The latest House Price Index
As of July 2024, the current annual property inflation rate stands at 4.06%, an increase on the last month. Provincially, property inflation remained steady in the Eastern Cape, Western Cape, and Gauteng, while it rose in KwaZulu-Natal, North West, and Northern Cape and decreased in the Free State, Limpopo, and Mpumalanga. Notably, the Low-Value segment saw the highest annual property inflation at 15.5%, while properties in the High-Value, Mid-Value, and Luxury segments experienced a slight increase to 3.1%, 4.5%, and 4.0%, respectively.
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