Real Estate Trends to Take Note of in 2023
Category Property Trends
As we push ahead into 2023, the trends that began to take shape in 2022 are set to take root this year, with some new movements beginning to settle on the local landscape of the industry. From the consistent growth of semigration to a drive towards estate living, we look at some of the Real Estate Trends for 2023.
Semigration
Semigration is certainly nothing new, with Cape Town arguably the largest recipient of the trend, with the Mother City a popular move even before the Covid-19 pandemic ramped things up.
According to Lightstone, semigration numbers are up to 35% for the past year, compared to 31% in 2020, with most people making the move between the ages of 49 to 64.
Further to this, 'silver semigration' is also on an upward curve, with older buyers starting to snap up smaller - but more valuable - properties in smaller towns along the Garden Route, Cape Overberg and Cape Winelands.
Sectional Titles still on the money
We saw in 2022 that sectional titles were becoming more popular, and this shows little sign of slowing down in 2023.
The Lightstone data is showing an increase in interest in sectional title properties, with a drop in transfers of freehold homes over the past five years.
This is something The Agency spoke of in 2022, noting the rise of sectional titling and sub-divisions making it more affordable for younger - and older - buyers to enter the market in the Southern Suburbs.
With the rise of remote working, the area has grown in popularity, with buyers now able to enjoy the unique lifestyle aspects it offers while not having to deal with a drive into the city.
With more affordable properties, spurred on by this trend, it is likely to grow this year and beyond.
Going green
Load-shedding and an increase in electricity costs have contributed to homeowners looking for more sustainable practices. But even without the threat of load-shedding, taking your home off the grid is a forward-thinking move and a trend that shows no signs of slowing down.
While it can be costly, a move to solar energy will not only future-proof your home, but will also save you money in the long run. It will also help with the resale value of your property, with many buyers putting an emphasis on sustainability.
Take a look at our guide on going off the grid, and the costs of making the move.
Estate Life is sought after
Another trend to really take shape last year was the allure of estate living. Much like sectional titles drove an upward tick in the southern suburbs market, The Agency saw the same for estate living in the area.
With the lock-up and go lifestyle and estate security a big drawcard for many buyers - and rentals - there was a limit on stock, with the market ask high for estates in areas like Zwaanswyk, Steenberg and Tokai.
The pandemic was again a driver of this trend, with buyers realising the importance of being able to enjoy a safe, secure lifestyle, with a lot of recreational and lifestyle opportunities close at hand. This is particularly true for buyers with families as they look for more controlled environments to enjoy time with their children.
Going small is getting bigger
While buyers with families are moving out, there is also a growing trend in micro-living, with young professionals seeking mixed-use apartments in the city centre and surrounds.
In Cape Town, there are plenty of options available to those looking to make the move with a lot of new developments catering to those wanting a secure, slick, well-serviced apartment or a lock-up and-go.
With remote work largely accepted as the way forward, and companies around the country changing their attitude towards having employees in the office at all times, workers are taking advantage. It is no different for this market, as buyers / renters look to set up shop in locations that provide them with what they need.
Real Estate continues to embrace tech
Digital technology will continue to drive real estate market, with buyers continuing to move into an online space when buying property.
With more consumers choosing to operate online, investment into 'proptech' has grown considerably, with agencies (and agents) also needing to keep up to date with the latest tech.
Here are some of the key proptech trends we can expect to see this year.
Increased Use of Artificial Intelligence and Machine Learning:
Artificial intelligence (AI) and machine learning are becoming more prevalent in the real estate industry, as they help automate processes and improve decision-making.
Focus on Sustainability and Green Building
Sustainability is becoming a more important consideration for consumers, and the real estate industry is no exception. We can expect to see more proptech companies in South Africa focusing on sustainability and green building practices, such as energy-efficient buildings or using environmentally friendly materials.
Emergence of Blockchain-Based Solutions
Blockchain technology has the potential to transform the real estate industry, with its ability to create secure, transparent, and tamper-proof transactions. We can expect to see more proptech companies in South Africa exploring blockchain-based solutions for everything from property transactions to property management.
Overall, as these proptech trends take hold, we can expect to see a more efficient and sustainable real estate industry, benefiting both buyers and sellers alike.
Looking to invest / buy property in Cape Town? Get in touch with our team today.
Author: The Agency Property Group
