MAIN IMAGE: Paul Mavro – Nedbank head of sales: Western and Eastern Cape
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With over 37 years of business experience, specialising in financial services, Paul Mavro is perfectly placed as Nedbank head of sales for the Western Cape and Eastern Cape. Recently, Mavro shared his insights into these two very different property markets.
You oversee the Western Cape and Eastern Cape as Nedbank head of sales. What would you say are some of the biggest differences between these areas?
One significant difference is average house prices: those in the Western Cape are far higher than those in the Eastern Cape. The reasons include real house price growth, demand for property, and semigration from inland areas to the coastal regions. Also, the Western Cape has the third largest GDP at 14%, in comparison to the Eastern Cape at 7.7%, based on economic data from 2023.
We know there’s a lot of semigration into the Western Cape. Are you seeing a similar trend in the Eastern Cape?
Semigration to the Western Cape has been rife for a while, but we have seen reverse semigration as a result of the high cost of living and properties in the Western Cape. This is not the case in the Eastern Cape.
Can you give us a snapshot of what’s happening in the Western Cape property market post the recent repo rate cuts?
Having the repo rate lowered twice (in September and again in November) set the stage for more favourable market conditions. As a result, we have seen further positive consumer sentiment and more activity in the realty industry. The Western Cape property market remains buoyant as buyers and sellers negotiate deals, with investor interest increasing and economic opportunities being created, which has added to the overall positivity in the property market in the Western Cape. It is set to soar post the interest rate reductions.
And what about the Eastern Cape?
There has been strong demand for property in the Eastern Cape as we see a positive increase in house prices. Seaside property has always been an attraction for property buyers, and the Eastern Cape offers more affordable property than some of the other provinces.
What would you suggest to buyers looking to move into these areas?
Buyers should consider property that suits their needs, affordability and investment plans. Many consumers opt for secure estate living because of the crime levels in South Africa and to live near schools if they have children. Consider how close the property is to your work, health services and amenities; ease of access to roads; and the general investment values and property trends in the area.
Can you share any tips for first-time buyers?
Seek expert advice to figure out what best aligns with your goals. Ensure you maintain a good credit record, find out how much you can afford to buy, and try working towards having a deposit when buying property so that you can negotiate a good interest rate for your home loan. Also, know the market before you decide on which house to buy.