Property Trends in 2023
Category Blog
Of all the trends we could discuss with regard to the housing market in any year, we can't ignore the fact that people are always going to want somewhere to live, a roof over their heads, the security of a home. It's an enduring human need as the population expands. And while there are ups and downs in any market, and equally so in property, the downs may be less acute due to the increasing volume of people each year - and the concurrent ongoing demand.
Semigration
- Sectional title popularity will continue to grow as people seek greater security in closer living styles. Many such properties are being purchased by first-time buyers, while data is showing that the volume of freehold property sales has been dropping steadily over the past five years. The demand for estate/gated communities will continue. Once the preserve of the elderly, housing developments of this nature are increasingly being built for families. People want to safely enjoy amenities and recreational activities within a controlled environment. And this is a countrywide trend.
- There continues to be gravitation to the Western Cape where buyers see a better lifestyle with more efficient service delivery. So this trend will continue. The biggest movers are in the 35 to 47 age group, opting to make lifestyle changes through relocation.
- The work-from-home trend which began in the pandemic is still a factor affecting choice of location and type of home, with people now buying with home office space in mind, or homes already set up for business functions.
- The retirement trend of moving from inland to the coast will continue, with the Western Cape still the most popular choice for retirees as people downsize, seek smaller, more manageable properties, and move to places they consider more secure. This also includes a sustained interest in small town property.
Going green
- Smart homes are definitely on the rise in 2023. Sustainable living is becoming a lifestyle choice. Houses that have installed various energy-saving devices and systems are becoming more popular. The expectation is that new homes should include, at the very least, solar geysers. Home automation - from blinds and lights to appliances - makes modern living easier and simpler, and a prime choice for professional couples.
- Electricity costs and loadshedding has seen a significant swing to solar-powered homes. Getting off the grid is no longer something for a log cabin in the woods, but a growing trend throughout business operations and the suburbs. Equally popular are homes with boreholes, and any other green features that help to reduce utility costs.
Small/micro housing
This is a fast-growing trend and is set to really impact in 2023. Single people, plus couples without children, young professionals, retirees, etc, are increasingly seeking lock-up-and-go minimalist lifestyle. Less expense, less upkeep, less maintenance is the way this new trend is viewed. There is a growing movement towards mixed developments that offer convenience along with security. Housing units are being built with easy access to restaurants, shops, gyms, entertainment and sports facilities - and often within close proximity to working opportunities. If there's one major trend to watch in 2023, it's this one.
Extended family living
As a result of the economic decline felt in SA before the pandemic, followed by lengthy shutdowns of business, many families have had to pool resources and live in extended family groups. This trend will continue while the global economy for the foreseeable future remains uncertain. The need for larger homes for this group of buyers is becoming more prevalent. Not only do they seek properties that are divisible, but also homes that have the land space for extension. Those properties with flats attached or garden cottages are set to become premium in the coming year.
Technology
The use of technology to manage, sell, and buy property is creating rapid change and innovation in the property market. This trend will continue through 2023. Although the personal touch of estate agents will still be vital - the process associated with their work will no doubt be reinvented in faster and less complicated transactions as the year progresses.
The year ahead
- A buyer's or seller's market in 2023? For the foreseeable future, the jury is still out on this. Although there are falling prices in the sought-after Western Cape, the region remains a seller's market. However, until there is some concrete positivity in the economy and a reduction in interest rates, the market remains tilted overall in favour of buyers.
- Luxury still on point. With the end of the pandemic and business beginning to return to more normal levels, the luxury property market is building new resilience even in a time of interest rate hikes. This upwards trend can only gain momentum in 2023. It's expected to be a big year for foreign buyers who are keen to invest in the luxury property market, strengthening through to 2024, with the Western Cape still remaining the most favoured area.
- Rentals - a continuing vital market. Renting is still seen as an alternative to buying for those who do not see their budget stretching to a bond, rates payments, and the associated responsibilities of owning a home. Ongoing rate increases and challenges within the economy through 2023 will present rental as a first choice for many. On the other hand, renting property for financial return may present some difficulties going forward for the next year or so. It's a delicate balance between renters affordability and owners' need to raise a profit on their properties. Not much will change in this situation in 2023.
- The fall of 100% home loans. There is a definite trend in the reduction of 100% home loan applications. The reason being that more people are waiting until they have a worthwhile deposit to hand, understanding that this positive plan will reduce monthly payments, and also improve the interest rate on their loans. The value of a deposit is becoming more respected, and this will hopefully be a continuing trend as 2023 progresses.
Leapfrog Property Group
Leapfrog Property Group offers a fresh and innovative approach to buying, selling, renting and property investments, ensuring the best property deals for clients across South Africa. Our agents are qualified, trained, experienced; our approach bold and spirited, driven by heart, generosity and honesty. It is our mission to advise, eliminate obstacles and save you unnecessary expense. Trust is our watchword. And value our motto. Armed with our combined credentials, we are the bright face of excellence in the South African market.
Author: Leapfrog Property Group
