Search engine data shows a recent rebound in web traffic to property portals in the country since lockdown, says Siphamandla Mkhwanazi, FNB property economist.
“While it’s too early to definitively draw conclusions, this could be an early indication of burgeoning bargain hunting by investor buyers and/or pent-up demand from first-time buyers looking to capitalise on the market,” he says.
Charles Thompson, director of Devmco Group, offers the following advice to those who are wanting to buy: “Location, location, location” should be the first factor to consider, especially locations that offer a blended lifestyle, such as those in estates.
Property which is priced at R2.5 million, with a 10% deposit, can earn capital gains of 8% per annum and a potential 5% to 7% overall on the value of the entire asset, he says. Off-plan property also offers a low initial capital investment.
Potential for growth on the market value of asset is there, especially between deposit and on transfer – a period in which you can gain capital appreciation without having to put down the full bond value.