27 Mar 24

Western Cape property outlook with Jenny Rushin, Regional Manager at BetterBond

What are the current trends in the Western Cape residential market and what is its short-term outlook?  Stefan Botha, Director at Rainmaker Marketing, discusses this and more in our latest podcast, joined by Jenny Rushin, Regional Manager Western Cape at BetterBond.

Listeners are afforded a front-row seat to the expertise driving the future of property investment as Jenny and Stefan look at the Western Cape property market.

In the heart of South Africa’s picturesque landscape, the Western Cape emerges as a beacon for families, professionals, and investors seeking stability and growth in the property market. As we navigate the complexities of today’s real estate trends, the latest episode of the Rainmaker Marketing podcast offers invaluable insights into trends, areas of growth in Western Cape, bank lending tendencies and interest rate predictions.

A legacy of expertise

Jenny Rushin, with over two decades in the home loan industry, represents the largest mortgage originator in South Africa, BetterBond. A born and bred Capetonian herself, Jenny lives and breathes the Western Cape, with a deep knowledge of its property market.

The Western Cape property market

Considered one of the most robust and radiant property landscapes in the country, the Western Cape stands out for its continued high demand across all sectors, from high-end to entry-level homes. This region is not just keeping pace, but it is outperforming other provinces, a testament to its allure and potential for both local and international investors. Banks and mortgage originators, closest to the pulse of the market, echo this sentiment, highlighting the Western Cape as a hotspot of property activity.

Emerging trends

Several key trends underscore the dynamic nature of the Western Cape’s property market:

–  Top-end real estate: The luxury segment is experiencing a surge, which is expected given the higher interest rates.

–  Semigration: Within the last six months, 35% of the semigration trend is driven by individuals that are not residents from Western Cape, and particularly from KwaZulu-Natal and Gauteng.

–   Rental market strengthens: The robust rental market underpins property demand, especially as more people flock to the Western Cape to reside. This offers stability to property investors.

–  Younger movement: Professionals are increasingly drawn to Cape Town, attracted by its vibrant lifestyle and opportunities. The average buyer used to be between 36 and 39 years of age, but now we are seeing purchasers of 34 and younger emerging.

–   Keen European interest: The region has become a haven for European buyers seeking stability and value, further internationalising the market.

–   First-time buyers: The Western Cape remains appealing to first-time homebuyers, with banks keen to support this segment due to the area’s infrastructure, quality of life and potential for growth.

Property hotspots within the Western Cape

Jenny Rushin delves into areas within the Western Cape witnessing significant growth, these include but are not limited to, Southern Suburbs, where areas like Claremont and Constantia are booming. The Atlantic Seaboard remains a perennial favourite for high-end Johannesburg buyers and foreign investors. While the City Bowl continues to attract both investors and end-users with premium sectional title opportunities.

Beyond Cape Town, regions such as Stellenbosch, Paarl, Wellington and Durbanville are seeing a significant shift. Residential property developments are coming to market soon to address the demand and the upcoming build of the new Winelands Airport will bring catalytic change. Lastly coastal towns, like Hermanus, have been seeing constant increased interest over the last two years.

Commercial space

From the empty office spaces we saw during the COVID pandemic to buzzing business hubs nowadays, the commercial space remains a great investment. Interestingly enough, there is a shortage of commercial property in the Western Cape with very few to no rental opportunities available. The commercial sector in the Western Cape is experiencing a surge, especially with call centres and international businesses setting up shop within this region.

Interest rate predictions

Nobody can really be sure of what the markets will be like each quarter, but there is an immense positive outlook that the first half of the year will remain stable and interest rate levels gradually dropping from the third quarter. Stefan Botha mentions that with having reached a plateau, individuals feel more confident and comfortable taking home loans and pursuing their property purchase.

Bank lending remains competitive

It goes without saying that the lending rate from banks has remained in favour of the purchaser. The lending landscape is more favourable than ever, with competitive rates and a willingness among banks to secure their share of the market. BetterBond plays a crucial role in this, offering consumers the opportunity to compare rates and secure the best deals for their property investments.

Understanding that the financial aspect of homebuying is often the most daunting, BetterBond aims to secure the best possible home loan deal for you. By submitting your bond application to various banks, including the one you already bank with, BetterBond leverages its wide network to negotiate an unbeatable interest rate on your behalf. This comprehensive approach ensures that you receive the most favourable terms available, tailored to your financial situation.

This episode of the Rainmaker Marketing podcast is not just a discussion; it’s a gateway to making informed decisions in the Western Cape’s property market. Whether you’re a family looking to lay down roots, a professional seeking opportunity, or an investor eyeing growth, Jenny Rushin and Stefan Botha provide the guidance and insights you need.

About BetterBond

With 20 branches across the nation, BetterBond’s footprint in the property market is wide, underpinning the quality insights shared on this podcast.

BetterBond simplifies the homebuying journey, removing the complexity and stress traditionally associated with acquiring a new home. From the outset, BetterBond is dedicated to making your offer more attractive to sellers by ensuring you’re pre-approved for a mortgage. This critical step not only showcases your serious intent but also positions you a step ahead in the competitive homebuying market.

This exceptional service is offered at no cost to you. BetterBond’s commitment to your homebuying success is reflected in its hassle-free process, designed to provide peace of mind and financial benefits.

Listen to the full podcast here. Take in the insights and ensure your next step towards securing your home in one of South Africa’s most sought-after regions.

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