Luxury homes are often the trickiest to sell but the latest Re/Max National Housing Report indicates this market is showing some positive signs of growth.
These homes are priced over R3 million, says Adrian Goslett, regional director and chief executive of Re/Max of Southern Africa.
Historically, the luxury market makes up the smallest portion of all transactions recorded at the Deeds Office, with just 3 094 of the more than 57 000 property transfers in the first quarter of 2019 being in this market.
So buying in the right suburb is key to generating a return on your investment when dealing in multimillion rand properties, Goslett explains. But he adds: “Properties over R3 million grew to account for 5.4% of all transactions this quarter, which is the largest this segment has been since the third quarter of 2017 at 5.62%.
“As investors become more certain that things will remain stable now that the elections are over, we are likely to see a slow but steady increase in market activity, causing long term price appreciation that keeps up with buyers’ growing demand. Investors who purchase real estate now therefore stand to be the envy of those who wait too long for the market to swing back in favour of sellers,” he says.