low interest rates would be charged on home loans, thereby making the dream of owning a home a reality for many South Africans.
“Owing to this increase in activity, we have already heard reports from some of our offices that there is a lack of stock available in their suburbs,” Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa, said. “It is possible that we are already beginning to see the swing from a buyer’s into a seller’s market, which means that we may soon start seeing prices begin their upward climb.”
Nevertheless, Goslett pointed out that any increase in the interest rates over the course of 2021 could hinder the growth of house prices.
“Even though the MPC has warned of potential increases of 25 basis points during 2021, it is possible that these increases may not come to fruition as this is all dependent on how the economy performs,” he said. “However unlikely it may or may not be, homeowners should still leave room in their budget for this when planning for the year ahead.”
Meanwhile, in Nigeria, a fellow Commonwealth nation in the African continent, real estate experts have called on the regulatory agencies to enforce mechanisms and processes that would ensure quality and standards in the industry. Participating in a virtual meeting organised recently by Northcourt, a real estate consultant in Lagos, the experts claimed that the future of the industry should be determined by adherence to ethics and principles.
“Going forward there is a more pressing need to ensure that standards are maintained. Before you could easily get away with doing things haphazardly, but now the game has changed,” Gbenga Ismail, the Principal Partner at Ismail and Partners, said. “This era has brought about transparency. The truth is this: If you are not transparent going forward, you are not going to be getting business.”
