The residential market in 2020; Gauteng edition
Category Property News
Gauteng is the economic powerhouse of the country - it is home to the biggest residential and commercial markets, and takes the crown as SA's wealthiest province. Due to its leading position, it is no surprise that when residential trends for the new year are predicted, Gauteng plays a central role in influencing these predictions, and discussions around the residential outlook for SA usually start with this province.
So with this in mind, let's take a look at the residential trends expected for Gauteng in 2020:
1. Affordable housing market
Through 2019, the affordable housing market saw incredible demand - properties priced for sale under R900 000, and rentals priced between R4 500 and R12 000pm were the most sought-after and were quickly snapped up. In 2020, this is expected to be the dominant trend for Gauteng as homebuyers and tenants will continue to choose more affordable properties.
2. First-time buyers grow
Driving the affordable housing market are first-time buyers, or more specifically, Millennials. This group, born between 1981 and 1996, formed the majority of first-time buyers in 2019 and this will continue into the new year. There are various reasons leading to heightened "first-timer" activity, such as government support through subsidies such as FLISP, and the complete removal of transfer duty costs for properties under R900 000.
3. Urban expansion
Cities that have affordably priced properties can expect a major population boom in 2020 as residents from around the province relocate here. Suburbs to look out for include; Pretoria, Midrand, Kempton Park, Germiston and Centurion. Another point to note is that as the population grows so does development. For example; the population boom in Midrand is transforming the town and it is now home to the award-winning Waterfall mixed-use precinct which has recently been named the Best International Mixed-use Development for 2019-2020.
4. Retirement homes
People are living longer now than ever before. This is a fact. What's more, they are also living healthier and more active lives. In order to match this lifestyle, retirement homes are transforming into state-of-the-art real estate with an incredible range of facilities such as heated pools, walking trails, restaurants, and hair and beauty salons. The medical offerings are also exceptional and include, medical consulting firms, assisted-living units, frail-care facilities and home-care services.
Over the years, Gauteng has brought a number of these modern retirement properties to the market such as Bronberg Retirement Estate and The Retreat Retirement Estate. In 2020, we can expect to see a higher demand for retirement estates as more people reach retirement age. Increased demand also means we can expect significant developer interest which will push up supply and diversify the market.
5. Technologically smart homes
Turning our focus to technology and real estate, technologically smart homes will see significant interest among homebuyers in 2020. The rise of smartphones and the constant need to stay connected will drive this trend as more homes become integrated with fibre connectivity, smart-technologies, and app-driven appliances.
6. Green homes
"Greener" homes that are environmentally-friendly, sustainable, and resource-efficient have become an essential part of Gauteng's residential market. This type of property is growing in demand as the mindset among homebuyers and developers shifts to one of environmental protection and preservation. In 2020, we can expect to see more homes with waste reduction facilities and renewable energy technologies such as solar and wind power. And a growing number of residential developments will be constructed using resource-efficiency in its design, construction and operation.
With 2020 less than a month away, the residential market in Gauteng will see many of the same trends that were experienced over the last few years, but on a much wider scale and in an environment that is more technologically advanced than ever before. For all your residential needs in the new year, CSi Property Group will continue to be your property guide.
Author: CSi Property Group