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The simple answer to that question is yes, most definitely. There are opportunities in all phases of the market - you just need to look out for them. 

If the South African property market were a person, it would be a boxer who has taken some hard knocks but keeps getting up and looking for the championship belt. As any boxer worth their weight, the market has taken the blows squarely on the chin, and there is still opportunity out there for sound property investments for those keep an eye out for it.

While many may see the market as a separate entity from themselves, it is in fact made up of buyers and sellers. So its people - people who are trying to buy low and sell high. If you want to understand the market, you have to understand people and how their feelings and sentiment will impact on real estate performance and demand. Although external factors may influence certain aspects, it is the consumers themselves that will largely dictate buying patterns and trends. Once investors understand how people react to specific cycles in the market, they will be able to determine when buying or selling is the most advantageous.

Understanding patterns and interpreting the signs of an evolving market will equip investors to prepare themselves better and gauge where the opportunity lies. Some signs to look out for include the following:

  • The overdevelopment of certain areas has led to many properties in those areas standing empty, which normally leads to investors being able to buy them at reduced prices. 
  • Prices that have shot up in an area too quickly will affect demand in that area negatively if buyers know that they can get more value for their money elsewhere. Once demand decreases in an area, so will the property prices which means that opportunities will begin to present themselves.
  • Movement of major corporations can lead to property investment opportunities as when large corporations relocate, they usually create a strong demand for property in that area.
  • Aside from financial gain, nothing drives migration to an area more than the pursuit of a safe and enjoyable lifestyle. 

While watching trends and buyer sentiment can give us an indication as to what the future may hold, it is impossible to predict with any real certainty. Perhaps the only real certainty in any market is that it is constantly changing.

Author: RE/MAX Midlands

Submitted 05 May 17 / Views 553