‘Homeownership is now more accessible to first-time buyers as there are lower monthly loan repayments.’
Economists are optimistic about a market recovery in 2025; given the more stable economic environment and the recent interest rate cut, they are also hopeful for another cut.
Serenity Hills says they have noticed how property demand continues to rise on the KwaZulu-Natal South Coast as more local and international buyers feel confident about investing following the formation of the government of national unity (GNU).
Reece Daniel, developer of Serenity Hills, gives some insights into interesting trends they foresee this year.
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1. Demand for land
Daniel says there has been a significant increase in buyers choosing land sales over pre-developed properties.
“With the recent reduction in interest rates and discussions about potential further cuts, clients are showing strong enthusiasm for land parcels.”
2. Buying land for cash
He adds that they have noticed that clients are choosing to buy land as it allows them to manage their expenses more effectively.
“By securing the land with cash and financing the construction through a home loan, they have more flexibility to design and build their dream home without facing the financial strain of a large, upfront investment.”
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3. Buying for the future
Another trend they have noticed is the growing interest from buyers aged 40 and above.
“Rather than buying a home for now, these land purchases are more strategic, with buyers looking to build a home in the future or as an investment opportunity.”
4. More first-time buyers
Daniel says the interest rate cut has poised the housing market for much-needed recovery, with more first-time home buyers likely to invest.
“Homeownership is now more accessible to first-time buyers, as there are lower monthly loan repayments. This is the right time for investors waiting to enter the property market.”
5. Self-sufficient estates
“While the stability of the national grid has secured investor confidence, future-focused buyers are still looking for secure estates that offer the foundations for getting off-grid, both in terms of electricity consumption and water use.”
Daniel adds that the semigration trend towards coastal towns will continue as people seek that holiday lifestyle.
