PROPERTY NEWS - RE/MAX of Southern Africa has reported impressive growth figures at the end of March, showing resilience in a challenging market. 

Registered sales for the brand are 6.9% ahead of the same period last year, while reported sales have surged by 10.5% compared to the previous year.

“YTD, our network’s commission income is also up 3.9% over same period 2021, which was our prior highest earning year YTD. That means, as at March, we're in the best commission earnings position we've ever been. This is largely because rental commissions have contributed more than in the past. Rental markets across the country have remained active ever since the post-pandemic interest rate hiking cycle started which made renting more attractive than buying,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.

Now that interest rates have come down, Goslett predicts that it is likely that we might see activity begin to shift back slightly towards homeownership. 

“The fact that our registered and reported sales figures have both seen impressive growth in the last month is an encouraging sign of what’s to come. While there was no interest rate cut at the last MPC meeting, it does seem as though interest rates have come down enough to stimulate greater activity within the local housing market,” Goslett notes.

Although the looming VAT increase will most likely slow down this growth, Goslett remains cautiously optimistic about what the year ahead has in store for the real estate market.

“Overall, the risks to growth within the property market seem largely balanced. As things currently stand, an interest rate hike is not forecasted for 2025. This should help with affordability challenges and help sustain activity in the property market,” says Goslett.

While the potential for growth remains strong, Goslett also cautions that the VAT increase will impact the cost of buying and selling property, as VAT is charged on agents’ commission fees. 

He advises real estate professional to encourage buyers to act sooner rather than later to avoid the higher costs.

“Those who purchase now will also benefit from the years of slowed house price appreciation that resulted from high interest rates. Now that interest rates are lower, house prices are likely to show stronger growth, so the sooner you can move out of the rental market and into homeownership, the better,” Goslett concludes.

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