MAIN IMAGE: Cobus Odendaal – CEO of Lew Geffen Sotheby’s International Realty in Johannesburg and Randburg
Lew Geffen Sotheby’s International Realty
The improvement seen in the Gauteng market at the beginning of 2024 was primarily reflected in an increased number of enquiries. However, real pen-to-paper progress began a few weeks after the election, and by the end of July, the robust post-election recovery had already exceeded expectations.
This is according to Cobus Odendaal, CEO of Lew Geffen Sotheby’s International Realty in Johannesburg and Randburg, who says July was a bumper month for them with R164 million in sales, which far surpassed their projections.
“Driven by a generally positive sentiment regarding the expected market and political improvements in South Africa in an election year, the increased market activity we saw earlier in the year wasn’t unexpected.
“However, the market’s resurgence post-election has been more dynamic than anticipated. In July, the turnover at our Randburg office tripled what it had been in previous months, and in Craighall, the monthly turnover doubled.
“This not only signals renewed confidence among buyers and investors in Johannesburg, but also reflects the first solid signs of restored confidence in the local market by local buyers, with Johannesburg naturally leading this revival.”
Odendaal says that they have also started to notice that many of the people who sold their properties during the past two years to liquidate assets are now coming back into the market to purchase. A surprising number of them are cash buyers.
“Homeowners who sold their properties and chose to rent before making any final decisions are now returning to the market. They’re using the same funds to purchase property again, signalling renewed confidence in the South African economy and a desire to invest in long-term assets.
“Having said that, we are still experiencing healthy activity in the more affordable rental market with demand still high for homes priced between R8000 and R35 000 per month, but demand has declined noticeably for properties priced higher, and it seems to be limited to specific areas and corporate rentals.”
Odendaal also notes a spike in enquiries from people who sold up to move abroad and foreign buyers.
“We’ve started to receive enquiries from expats looking to move back and buy property again, which is very encouraging. We’re also fielding more enquiries from foreign nationals. However, this interest is largely centred around return business with existing clients and specific referrals, rather than new market entrants, demonstrating the importance of established relationships and trusted networks.”
Although much of the renewed activity is happening around the R2 million mark, with secure sectional title properties in areas like Hyde Park and surrounds being especially popular, Odendaal says that there is also more movement at the higher end of the market with people willing to invest significant amounts in South Africa, including their savings, which he feels is a very positive indication and bodes well for the future.
“That said, we need to bear in mind that the top end is a relative concept, and I’m not only referring to homes in the R20 million plus band, which are slowly and tentatively attracting more enquiries; I’m talking about the higher priced properties in each area where there has been a definite increase in demand. I suspect that enquiries for trophy homes will translate to wet ink offers during the next quarter or two.”
Another indication of renewed market activity is a revival in the development sector, which Odendaal says is already underway.
“We’re already seeing increased activity from prominent investors focusing on smaller, exclusive developments and larger multi-unit projects. The latter, particularly one, two and three-bedroom units, are being concentrated near shopping centres and business hubs, reflecting a strategic approach to meet the revived market demand.”
Looking ahead, Odendaal believes that although the Johannesburg market has seen a spike in market activity and an influx of capital since the election, it’s still in the process of fully swinging to a buyer’s market.
“If the repo rate comes down, which is widely expected, this shift could accelerate, giving buyers even more leverage.
“Over the next 12 months, I anticipate increased activity across the Highveld market, with continued restoration of confidence among buyers and investors. This positive momentum, fuelled by a stabilised political environment and potential interest rate adjustments, should lead to more transactions and development projects.
“And with business confidence also well on the way to recover, the Johannesburg market, in particular, is poised for sustained growth as both local and international interest will remain strong.”
