In Port Elizabeth, a notable transition from a buyers’ market to a sellers’ market is underway, signaling positive prospects for South Africa’s property sector in 2024. Recent indicators point towards this significant shift, buoyed by the Reserve Bank’s decision to maintain interest rates—four consecutive decisions that instill confidence in a potential rate drop later this year. This anticipated decrease is expected to stimulate an increase in property transactions.

Despite a challenging 2023, which saw a 29% market downturn on average, there are encouraging undercurrents. The Lightstone Report highlights that 38% of all transactions were from first-time buyers, indicating a latent demand for homeownership. National increases in inquiries further support the notion that a transformative change is on the horizon.

The shift commenced on New Year’s Day and will gradually unfold over the next 24 months. Contrary to the negative outlook at the beginning of 2023, the sentiment is now more positive, with economic indicators supporting this shift. Inflation appears to be stabilizing at more acceptable levels, mirroring global trends. The Reserve Bank’s warnings notwithstanding, signs suggest that the global interest rate cycle’s upward phase has concluded, potentially leading local interest rates downward.

Political and economic uncertainties, identified by Lightstone as pivotal factors for stabilizing the property market, are expected to ease during the upcoming election year. This clarity is anticipated to resolve uncertainties and encourage hesitant buyers to enter the market. Additionally, improvements in load shedding and visible progress in infrastructure and service delivery are poised to have a positive impact. Even marginal enhancements in economic growth and employment are anticipated to fuel an upward trajectory.

While KwaZulu-Natal’s market is thriving, Johannesburg is experiencing renewed positivity and increased activity, and the Cape market remains buoyant. Lightstone underscores that 21% of buyers are relocating or downsizing due to lifestyle changes, a trend expected to gain momentum. Moreover, the demand for environmentally friendly homes is projected to rise in 2024, driven by the cost and availability of electricity and water. Homes equipped with alternative energy sources such as solar and water-saving systems are likely to attract buyers, along with a continued emphasis on robust security measures.