Hope and anticipation are fueling business and consumer confidence

What is that I hear? Is it a collective sigh of relief for those supporting the newly formed government of national unity and coalition structure that has been put in place for KZN. With the 80 seats available in KZN split 39-41 this is as close as you get between two opposing political views being split down the middle.

The financial markets re-bounded and Rand exchange rate surged ahead once this news broke. The threat of amending the constitution and undermining property rights, which are the very foundation of a free-market economy, were very real and evident. The newly elected representatives now have an incredible opportunity to make a difference and put South Africans first. We expect far better financial discipline and control and improvements in service delivery. This hope and anticipation are fueling business and consumer confidence, which is all important when people make long-term investment decisions like buying a home.

Even in the absence of immediate interest rate relief the property market is expected to surge ahead. It cannot be long before we experience the first interest rate cut which will reverse the trend line and indicate a near term future of lower interest rates.

This will start to ignite general economic activity and in particular mortgage bond extensions as affordability levels improve. There is an excitement in the air which is translating into more people committing to property purchases. As estate agents we have never been more ready for an improvement.

As a seller it is all good news, and we may even see the switch from a buyer's market to a seller's market in the near future. KZN has received a series of unfortunate events since Covid that has weighed heavily on the demand for real estate. With the holiday season soon to start, the seduction of our perfect winter weather and the beauty of our coastline will predictably entice our up-country visitors to consider investing.

The value proposition of our Dolphin Coast properties is so compelling at the moment with some areas at least 30-40% undervalued. If you are a buyer and have been considering your timing of an investment, now would be the last window of opportunity to lock-in the competitive pricing.

For sellers it offers the opportunity to prep their home for sale. Showroom condition is what buyers expect and demand. This takes a bit of capital investment to get a property to the ideal presentation state, but will pay dividends in terms of buyer interest and eventual price point achieved. The best news for sellers is that Seeff are offering a R1m cash prize to a seller who sells through a Seeff agent on a sole mandate, regardless of the price of the property. This is a first for our property industry and likely to get attention in the market.