The Johannesburg real estate market has seen an influx of major capital since the May elections and the formation of the Government of National Unity (GNU).
According to Chas Everitt, billions of rands have been flowing into the Johannesburg real estate market since the start of 2024, especially since the formation of the GNU in early June.
Rory O’Hagan, principal of the Chas Everitt Hyde Park and Sandton branch recorded more than R800 million worth of home sales in Johannesburg’s northern suburbs just in the the past seven months.
“We have noted increased property demand in our area, and actually right across Gauteng since the beginning of the year,” he added.
There is a correlation between this data and the latest Absa Homeowner Sentiment Index (HSI).
The index showed that overall confidence in the Gauteng property market rose from 64% in the second quarter of 2023 to 72% in the same period of this year.
The GNU’s influence
O’Hagan argued that the GNU has boosted interest among both local and foreign investors and resulted in a significant upturn that has taken their office from a monthly average of R100 million in sales earlier in the year to over R150 million a month in June and July.
Business confidence also began to recover in June and July after a sharp decline in the led-up to the elections.
The South African Chamber of Commerce and Industry (SACCI) showed that its business confidence index rose to 109.1 in July, up from 109.0 in June and 107.8 in May.
SACCI also acknowledged the positive impact the GNU has had on SA’s Business Confidence Index.
“The broader representation and accountability in government have created an opportunity for efficient economic expansion, more employment opportunities, and increased inclusiveness,” SACCI said.
It’s a buyers’ market in JHB
O’Hagan said that it is certainly a buyer's market at the moment in Gauteng with an abundance of “stock”.
He also noted that buyers have the luxury of being able to broker and arrange a price that fits their pocket.
“At the moment it is a buyers’ market, with lots of stock, sellers willing to negotiate and prices at 2018 or 2019 levels, thanks to below-inflation growth for the past five years,” he said.
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