Looking beyond the headlines of the Western Cape's property market, ooba Home Loans' "Unlocking the Numbers" report (April 2024) reveals exciting opportunities in other regions. Let's explore where to consider buying, renting, or investing based on current trends.
Hotspots for Buying:
- Mpumalanga (Buy): Enjoy the highest house price growth (9.5%) in Q1 2024. This indicates potential for capital appreciation if you plan to sell later.
- Gauteng South & East Rand (Buy or Rent): This region offers affordability for FTBs, with strong price growth (8.8%) making it attractive for both buying and renting out as an investment.
Advantages:
- Mpumalanga: More affordable option compared to established markets, potential for future growth.
- Gauteng South & East Rand: Lower entry point for FTBs, good rental yields for investors.
Disadvantages:
- Mpumalanga: May have fewer amenities or job opportunities compared to major cities.
- Gauteng South & East Rand: Commute times to job centers could be longer.
Eastern Cape (Consider Buy-to-Rent or Holiday Home):
- This province boasts the second-highest investment demand (16.2%) and the strongest holiday home application rate (2.0%) nationally.
Advantages:
- Strong rental market fueled by tourism.
- Potential for capital appreciation in popular holiday destinations.
Disadvantages:
- Holiday home usage may be limited, requiring property management for rentals.
- Fluctuations in tourism could impact rental income.
Areas to Watch (Consider Renting Initially):
- Free State: The Free State has seen a rise in FTB activity despite the national dip. Affordability (average FTB purchase price below R1 million) makes it an interesting area, but wait and see if the trend continues before committing to a purchase.
Advantages:
- Potentially good long-term investment if the market strengthens.
Disadvantages:
- Limited data on current growth trends.
National Trends:
- The national average house price increase for Q1 2024 was a solid 9.4%.
- FTB demand has dipped slightly to 46.6% of total applications due to economic factors.
- Investment property applications reached a 16-year high at 12.5% nationally.
Source: ooba Home Loans & Lightstone
Disclaimer: This article provides a brief overview of trends based on the mentioned report. It's recommended to do your own research and consider your financial situation and lifestyle goals before making any property decisions.
Remember: Consulting a real estate agent specializing in your chosen area is crucial for in-depth analysis and personalized recommendations.