property trends 2021

5 Predicted Property Trends for 2021

With the Budget Speech wrapped up and 2021 well underway, developers have got a good sense of the direction of South Africa’s property market and the property trends in 2021. The ongoing Covid-19 pandemic will continue to influence investor decisions, with many buyers continuing to take advantage of the favourable interest rate. Phil Barker, of Renishaw Property Developments on the KZN South Coast, has shared some insights into the most likely property trends for the year.

 

1. Increased digitisation

“The spike in online activity since the start of the pandemic in 2020 will continue to grow, as people realise the convenience and viability of digital communication. Within the property sector, this will influence the communication between potential buyers and sellers, as well as what buyers look for when investing. Aspects such as fibre optic cables, WiFi, biometric access and the ability to transform into ‘smart homes’ will become more important when considering a home.”

2. Prioritising lifestyle

“The shift to working from home will see buyers choosing lifestyle over more centrally-located living spaces. People will be looking at places with large, open spaces; extensive views and the security afforded by gated estates. Nature-based living has proven to be important during hard lockdown, but people still want access to modern amenities. All-inclusive estates with on-site recreational facilities are being prioritised as they minimise the need for travel while allowing for freedom of choice.”

Read: South Coast of KZN becomes a semigration hotspot

3. Rise in coastal and country living

“Because people are now able to work from anywhere, and with lifestyle a primary concern, many are looking to invest in coastal or countryside properties. Rather than taking on the cost and administrative restrictions of having a ‘holiday home’, investors are consolidating with one home that offers a ‘holiday living’ existence. There is more need for space, so that there can be a distinction between ‘work’ and ‘play’, which means either a granny flat or extra room dedicated to working.”

Read: Suburban migration will drive the hybrid way of working 

4. Sustainable living

“The rising cost of electricity, ongoing load shedding, and interrupted water supply has seen investors looking at getting off the grid through water storage tanks and solar panels. When it comes to home construction and estate living, ‘organic’, ‘indigenous’ and ‘sustainable’ are phrases that will continue to dominate the market.”

Read: Proposed tariff increases set to have a big impact on all South Africans 

5. Low-interest rates

“The 50-year low-interest rate that triggered the spike in property sales last year will continue into 2021, and while the interest rate might rise again, it’s likely to be in small increments. This means that we can expect to see more property sales, particularly in the 1.5m to 3m category, with well-run, secure estates the hottest sellers.”

Read: SA Property Industry – What the stats reveal