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IMPROVING MARKET SENTIMENT SIGNALS A POSITIVE OUTLOOK FOR THE RESIDENTIAL PROPERTY SECTOR

IMPROVING MARKET SENTIMENT SIGNALS A POSITIVE OUTLOOK FOR THE RESIDENTIAL PROPERTY SECTOR

  • Increased demand and activity levels
    • Market activity has increased, especially in Gauteng and the Western Cape
    • The Western Cape is expected to remain the top destination for semigration
    • Johannesburg is a top home location for those seeking better employment opportunities
    • Buy-to-let properties will remain strong, as many individuals are unable to purchase homes at this time
  • Additional interest rate cuts will help boost demand and activity in the property market
    • Johannesburg has experienced no capital appreciation since 2010, creating a buyers’ market
    • KwaZulu-Natal is a buyers’ market, with estates like Zimbali benefiting from high demand for exceptional lifestyle and secure living
    • Cape Town is currently a sellers’ market, largely driven by semigration trends, strong capital appreciation and international buyers
    • It takes on average 11 weeks and two days to sell property

2 December 2024

Johannesburg South Africa

The Group highlights improving market sentiment, rising property demand in Johannesburg and the Western Cape, and the potential impact of further interest rate cuts as key factors contributing to this positive outlook.

The Group highlights improving market sentiment, rising property demand in Johannesburg and the Western Cape, and the potential impact of further interest rate cuts as key factors contributing to this positive outlook.

Jonathan Kohler, Founder and CEO of Landsdowne commented:

“Demand for buy-to-let properties will remain strong, as many individuals are unable to purchase homes at this time and prefer to use their available funds to pay down debt. However, in select areas of Johannesburg and the Western Cape, driven by semigration trends, we are starting to see an increase in buyer activity.”

Kohler said Johannesburg has not seen capital appreciation since 2010, making it a buyers’ market. “This is an opportune time to invest in property in the metro, but many potential buyers are hesitant due to financial constraints and inadequate service delivery,” he said.

An increasing number of buyers, especially young professionals and families, are choosing homes in secure, lifestyle estates, as reflected in the growing demand for these properties.

Buy-to-let investors are picking up value in the market. For instance, a 45m² apartment priced at about R680,000 and renting for R7,000 per month offers net rental yields of 10.27%. Similarly, a two-bedroom, two-bathroom apartment priced at R1.2 million and renting for R9,750 per month yields a net return of 7.36%.

Kohler said KwaZulu-Natal is also a buyers’ market, with established estates like Zimbali capitalising on the strong demand for exceptional lifestyle and secure living options.

The FNB Property Barometer for October highlights a notable uptick in market activity, with Gauteng and the Western Cape seeing a surge, while the Eastern Cape and KwaZulu-Natal recorded more moderate levels of activity. The report also suggests that declining home prices in Gauteng may be attracting more buyers, reinforcing our belief that now is an ideal time to invest in property within the metro, said Kohler.

Semigration to the Western Cape is expected to persist into 2025, as buyers increasingly seek quieter, more peaceful lifestyles. The Western Cape is expected to remain the top destination for semigration, while those in search of better employment opportunities are relocating to Johannesburg. “Many individuals, particularly young professionals, are opting to rent in Johannesburg first before committing to buying property,” Kohler notes.

He said with many households still financially constrained, homeownership is not a viable option for most. As a result, renting continues to be a popular choice, as it offers the stability of fixed monthly expenses, protecting tenants from sharp cost increases.

Cape Town remains a sellers’ market, driven by semigration trends, strong capital appreciation and international buyers. “However, investors should proceed with caution, as the market’s growth is not sustainable in the long term. When a correction occurs, prices may become unaffordable for many South Africans,” he warns.

Improved market sentiment and increased activity have led to shorter selling times, with properties now averaging 11 weeks and two days on the market, down from 12 weeks and two days in the second quarter of 2024, according to FNB. This decline was seen across all regions, particularly in the higher-priced segments.

Kohler added that further interest rate cuts in 2025 will help to further boost market demand and activity, and hopefully, meaningful property price growth.

Aerial view of the landscape

SUSTAINABILITY IS ABOUT BUILDING A RESILIENT, ANNUITY-BASED BUSINESS, SAYS LANDSDOWNE PROPERTY GROUP

  • Landsdowne Property Group has built 10 annuity-based businesses including:
    • Property sales and rentals
    • Off-plan property sales and marketing
    • Property Management
    • Estate Management
    • Financial Services
    • Maintenance
    • Utilities
    • Insurance Brokers
    • Solar
    • Legal
  • Additional interest rate cuts will help boost demand and activity in the property market
    • Johannesburg has experienced no capital appreciation since 2010, creating a buyers’ market
    • KwaZulu-Natal is a buyers’ market, with estates like Zimbali benefiting from high demand for exceptional lifestyle and secure living
    • Cape Town is currently a sellers’ market, largely driven by semigration trends and strong capital appreciation.

04 November 2024

Johannesburg South Africa

Landsdowne Property Group (“Landsdowne” or “the Group”), one of South Africa’s largest residential real estate managers and estate agency companies, believes that sustainability is about building a resilient, annuity-based business.

Founded in November 2006 with just one employee, Landsdowne grew to 170 employees by 2024 and has established 10 annuity businesses since the launch of Landsdowne Property Management in 2010.

Jonathan Kohler, Founder and CEO of Landsdowne commented:

“As we celebrate our 18th anniversary, we remain committed to aggressive growth through exceptional service, referrals, and innovative sales strategies. Our goal is to become the largest real estate service provider in South Africa.”

“We will continue to expand by acquiring businesses related to real estate, such as property management and financial services, to ensure the long-term sustainability of our operations and the well-being of our employees.”

Kohler said rather than relying solely on revenue from sales and rentals, the group has diversified its income streams. This approach not only ensures the financial sustainability of the business but also provides a consistent flow of revenue.

Originally established as Landsdowne Investment Properties, the business began its journey in Kohler’s sister’s garage in Morningside. The name “Landsdowne” is derived from Kohler’s family home, which shares the same street name in Bryanston, Johannesburg.

To celebrate its 18th anniversary, Landsdowne Property Group relocated its head office from Bryanston to Sandton and opened new office in Paardevlei, Cape Town in November.

In 2007, the company secured its first client, managing properties for investors purchasing real estate in South Africa. By 2010, it had launched Landsdowne Property Management and was appointed managing agents for its first Body Corporate, overseeing a 30-apartment building in Parktown North. That same year, the group acquired offices in Lonehill and took on its first Summercon development.

In April 2012, the group launched Landsdowne Estate Management, leading to various appointments to manage estates, including the prestigious Steyn City and Eagle Canyon Golf Estate in Johannesburg. Since 2015, it has also gained extensive experience in managing commercial properties.

In March 2023, Landsdowne was appointed as the managers for Orlando Estate Towers, Soweto’s first sectional title lifestyle development, featuring apartments priced between R600 000 and R980 000. The estate, which is being developed in phases, will ultimately comprise 568 apartments upon completion.

“We see significant growth potential for sectional title management in Soweto, driven by increasing demand for secure lifestyle environments and new urban living models in the townships.”

In November 2018, the group introduced Landsdowne Financial Services, offering tailored financial solutions to help residential estates operate efficiently. This includes providing short-term loans for special projects or addressing levy arrears. That year, the group was also appointed as rental managers for developments by JSE-listed Balwin Properties in Olivedale and Calgro M3 in Roodepoort.

When the COVID-19 pandemic struck and strict lockdown measures were implemented, the group seized the opportunity to launch Landsdowne Maintenance in March 2020. “We identified a growth opportunity in the market and adapted our offerings accordingly, and this business continues to thrive,” said Kohler.

In 2022, the group introduced Landsdowne Utilities and Landsdowne Insurance Brokers in collaboration with Telesure Investment Holdings. In July 2023, they launched Landsdowne Solar, followed by Landsdowne Legal in June 2024.

The other two annuity businesses include property sales and rentals, as well as off-plan property sales and marketing.

With offices in Johannesburg, Steyn City, Cape Town, and KwaZulu-Natal, the group has won 10 International Property Awards. These accolades include the title of Best Letting Agency in South

Africa at the African and Arabian Property Awards, as well as Best Lettings Agency in South Africa and Best Lettings Agency at the International Property Awards.

Kohler expressed hope that lower interest rates will stimulate demand and activity in the market. While there is positive sentiment surrounding the Government of National Unity (GNU), he emphasised that concrete actions are essential to drive the market forward.

In contrast, he noted that Johannesburg has not seen capital appreciation since 2010, making it a buyers’ market. “This is an opportune time to invest in property in the metro, but many potential buyers are hesitant due to financial constraints and inadequate service delivery,” he said.

KwaZulu-Natal is also a buyers’ market, with established estates like Zimbali capitalising on the strong demand for exceptional lifestyle and secure living options.

Cape Town is currently a sellers’ market, largely driven by semigration trends and strong capital appreciation. However, Kohler advises investors to exercise caution, noting that the market cannot sustain its growth indefinitely. When it eventually corrects, prices may become unaffordable for many South Africans.

A GOOD CREDIT RECORD IS A POWERFUL TOOL FOR TENANTS, EMPOWERS THEM TO SECURE FAVOURABLE LEASE TERMS

A GOOD CREDIT RECORD IS A POWERFUL TOOL FOR TENANTS, EMPOWERS THEM TO SECURE FAVOURABLE LEASE TERMS

  • Having a good credit record helps potential tenants to:
    • Secure quality rental properties
    • Negotiate favourable lease terms
    • Pave the way for future financial opportunities for home or personal loans
  • There are effective ways to improve or enhance a credit score
    • Pay bills on time
    • Pay more than the minimum due monthly
    • Reduce debt
    • Limit new credit requests
    • Check your credit report regularly

09 October 2024

Johannesburg South Africa

Landsdowne Appointed to Manage Devonbosch: A New Luxury Development in the Cape Winelands

Landsdowne Property Group (“Landsdowne” or “the Group”), one of South Africa’s largest residential real estate managers and estate agency company says having a good credit record is a powerful tool for tenants, and it empowers them to negotiate more favourable lease terms.

In a competitive rental market, a strong credit history helps tenants secure quality properties while also paving the way for future financial opportunities, such as home or personal loans.

Jonathan Kohler, Founder and CEO of Landsdowne commented:

“Rising living costs and prolonged high interest rates have significantly impacted tenants’ ability to afford rent, with many now spending as much on debt repayments as on rent. In our portfolio, we observed a decline in rental agreements last month, reflecting the strain on tenants’ financial situations.”

Last month, the Reserve Bank reduced interest rates by 25 basis points to 8% annually, leading to consumers now paying a prime rate of 11.50%. While this is a positive development and suggests the possibility of further rate cuts, Kohler said that the benefits of lower interest rates will take time to reach financially constrained households.

The PayProp Rental Index for the second quarter of 2024 reveals that the average tenant spent 46.7% of their income on debt repayments and 30.3% on rent, leaving only 23.0% for other expenses. A common guideline for rental affordability suggests that tenants should ideally spend no more than 30% of their income on rent.

“Increased tenants’ obligations result in downward pressure on the rental market, prompting savvy tenants to seek more affordable properties to maintain their creditworthiness,” said Kohler.

Kohler said without a credit history, it makes it challenging to secure home loans and rental properties, as creditors cannot assess an individual’s payment history and affordability. A credit record is typically established through various forms of credit, such as cellphone contracts, store accounts, or loans from banks.

When evaluating potential tenants, landlords and rental agents focus on net monthly income—the tenant’s salary after taxes—to determine affordability, often relying on credit checks conducted by bureaus like TransUnion.

Credit bureaus calculate a credit score based on an individual’s payment history and overall debt. This score reflects how effectively one manages existing credit at the time of application.

According to TransUnion, a credit score is categorised as favourable (614-680), good (681-766), or excellent (767-999), with higher scores indicating better creditworthiness. Conversely, a poor or below-average score signals the need for improvement in one’s credit risk profile.

Here are five effective strategies to build and enhance credit:

Pay bills on time: Timely payments are crucial for improving your credit rating, as late payments can remain on your credit report for up to five years. If you miss a payment, make sure to settle the balance as soon as possible.

Pay more than the minimum: Paying more than the minimum due not only reduces the total interest paid but also helps you pay off debts faster, especially smaller balances, which can lower monthly expenses.

Reduce debt: High debt levels can negatively impact your credit score. Aim to pay off and close some accounts or credit cards, consolidating to just one or two if possible.

Limit new credit requests: To effectively build or improve your credit rating, avoid taking on additional
debt, such as new personal loans or credit cards, during this period.

Check your credit report regularly: Monitoring your credit report is essential for tracking progress and
identifying areas for improvement, helping you to boost your credit score over time.

Jonathan Kohler Landsdowne CEO

RECOVERY IN RESIDENTIAL PROPERTY MARKET WILL TAKE TIME DESPITE MOOTED INTEREST RATECUTS, JOBURG PROPERTY MARKET SHOWING DEEP VALUE

  • Interest rate cut could potentially be the start of a mind shift of rejuvenation
    • Supported by the formation of GNU, end of load shedding, a stronger currency and
      lower inflation numbers
  • Lower inflation would lead to a stable property market
    • Increase demand for property
    • Home loans will be more affordable
    • Consumer confidence will improve
  • Significant headwinds remain
    • Households are still significantly stretched financially
    • Ongoing rates and utility increases
    • Looming water-shedding
  • Rentals remain a good option
    • Fixed rate and predictability with some overheads absorbed by the landlord
  • Johannesburg offering deep value for prudent investors
    • Especially the Johannesburg market will benefit from a series of rate cuts
    • Little to no capital appreciation over past decade makes it a buyer’s market
    • Prudent investors can lock in some value, especially if rate cut cycle continues

18 September 2024

Johannesburg South Africa

Landsdowne Property Group (“Landsdowne” or “the Group”), one of South Africa’s largest residential real estate managers and estate agency
company says recovery in the residential property market will take time, although interest rate cuts, lower inflation and other external factors are major catalysts for a start of a mind shift of rejuvenation. 

Jonathan Kohler, Founder and CEO of Landsdowne commented:

“During the past year, activity in the property market has stalled as consumers remain under significant financial pressure on all fronts. Disposable household income not only had to contend with a higher-for-longer interest rate environment but was further eroded by significant increases in electricity rates, food and transport costs.”

The South African Reserve Bank is likely to reduce interest rates by 25 basis points, which would lower the benchmark repo rate to 8%, at the conclusion of its upcoming monetary policy meeting on Thursday. This anticipated cut follows a decrease in inflation to its lowest level in over three years, coupled with ongoing sluggish economic growth.
Recent data from Statistics South Africa shows that inflation fell to 4.6% year-on-year in July, down from 5.1% in June, marking the lowest rate since July 2021.

In its July meeting, the central bank’s monetary policy committee (MPC) revised its inflation forecast for the year to 4.9%, down from a previous estimate of 5.1%. The MPC also expressed concerns about persistently high global interest rates, including those in the United States, noting that rates might remain elevated longer than markets had expected.

“The good news is that most of these risks have receded, buoyed further by a revival in positive consumer sentiment on the back of the formation of the Government of National Unity (“GNU”), an end to loadshedding, as well as a stronger performance by the Rand, which led to consistent reductions in the cost of fuel as a welcome spin-off,” explained Kohler.

He added that lower inflation rates will support demand for property, as well as homeloans becoming more affordable as banks relax their lending criteria.

Kohler, however, warns that it will take time before we see the start of a sellers’ market any time soon, and that some significant headwinds remain.

“Although we’ve seen an increase in appetite from prospective homebuyers, their buying power is still limited. The respite of a marginal interest rate cut will have minimal impact, and even a 0.5% drop in interest rates will take time to reflect in demand for new homes, as consumers will likely first settle more expensive credit cards and other debt,” he said.

Kohler says prospective homebuyers will also need to factor in ongoing rates and utility increases and looming water-shedding that will require additional capital outlay to overcome.

For this reason, he believes that some consumers will continue to prefer renting as opposed to buying a property, as the monthly expenses are largely locked in, protecting the tenant from significant upswings.

The table below demonstrates the impact of various interest rate cuts on a R1 million homeloan bonded over 20 years, where a 0.25% reduction in the prime lending rate will leave homeowners with R173 per month extra. A 0.5% reduction will result in additional disposable income of R345 per month.

Loan amount (no deposit) Interest rate Monthly bond repayment Monthly saving on current prime rate
R1,000,000 11.75% (current prime) R10,837  
R1,000,000 11.50% (0.25% reduction) R10,664 R173
R1,000,000 11.25% (0.5% reduction) R10,492 R345

Source: Landsdowne Properties

Kohler says there are pockets of excellence with transactions still taking place though volumes are down. Especially Johannesburg, which offers exceptional value for discerning buyers.

“Johannesburg will most likely benefit most from a series of interest rate cuts,” he says. “Over the past decade, there has been little to no capital appreciation in the city, making it a buyers’ market at the moment,” Kohler said.

He believes prudent investors can unlock some value, especially if the rate cut cycle continues, supported by ongoing positive sentiment around the country and Johannesburg macro-outlook.

Jonathan Kohler Landsdowne CEO

Rate Cuts to Boost Joburg Property Market

Landsdowne Property Group (“Landsdowne” or “the Group”), one of South Africa’s largest residential real estate managers and estate agency company says a cut in interest rates would stimulate the residential property market. The group said despite high interest rates, northern Johannesburg suburbs including Bryanston, Sunninghill and Paulshof offer good value for savvy investors.

Jonathan Kohler, Founder and CEO of Landsdowne commented:

“Property prices in Johannesburg are sitting at levels last seen 14 years ago and we believe now is a good time to buy property in the metro. Courageous investors who take a long-term view will be rewarded when the market turns.”

Kohler said one bathroom and one bath apartments in Johannesburg north offer very good value with net rental yields of 10.27%. This is based on a 45m2 apartment priced at about R680 000 and rented out for R7 000 per month.

A two-bedroom, two-bathroom apartment in Johannesburg priced at R1.2 million and rented for R9 750 per month offer net rental yields of 7.36%. Landsdowne is a sales and rental agency with over 40 000 apartments and freestanding clusters under management.

The group is seeing increased demand for properties in the suburbs including Bryanston, Sunninghill and Paulshof.

Centrally located close to the Sandton and Randburg CBDs and other areas with excellent schools, medical facilities, shopping and entertainment facilities, Bryanston remains a sought-after suburb to buy property. It offers entry level apartments to luxury family homes and residences.

Areas of Interest for Property Owners

According to Lightstone data, in 2021, Bryanston emerged as one of the top 10 locations for people owning multi-properties and was one of the top selling suburbs in the country in 2023. Paulshof and Sunninghill are well-located close to amenities and schools and offer buyers a wider range of properties to choose from.

It is possible to find a one-bedroom apartment in Paulshof for R730 000 making it a great buy-to-let investment property. Kohler said higher-for-longer interest rates coupled with high inflation and rising cost of living are putting pressure on affordability to buy or rent property.

The South African Reserve Bank (SARB) started hiking interest rates in November 2021, and since May 2023, the bank has held rates steady at 8.25% following a cumulative 475 basis points increase. Market consensus is that the Bank would hold rates steady with the first cut expected in September.

Kohler said last month, the group recorded a decline in deals whether in sales or rentals. There are more people wanting to buy or rent property , but their credit records are tainted. “A rate cut would benefit struggling consumers and stimulate activity in the residential property market,” added Kohler.

Devonbosch

Landsdowne appointed as exclusive managers of upmarket DevonBosch Precinct in the Western Cape

  • Devonbosch is a mixed-use precinct being developed by SquareTurn Developments
    • It will take 10-20 years to complete the development, depending on demand
    • Each precinct will have its own sectional title scheme but forms part of the master homeowner’s association
    • Apartments are priced from R2.495m
    • Future development plans include a hotel, schools, universities and medical facilities
  • The appointment positions Landsdowne as specialists property managers of mixed-use precincts
    • The group already manages other high-end precincts including Steyn City in Gauteng, and Conradie Park and Paardevlei in the Western Cape
    • Unlike managing a normal estate, mixed-use precincts require specialised management skills to balance the interests of the developer and residents
    • Landsdowne will also manage the commercial precinct at Devonbosch, handle tenant billing as well as manage budgets as, and when development phases are rolled out

4 June 2024 

Johannesburg, South Africa

Landsdowne Property Group (“Landsdowne” or “the Group”), one of South Africa’s largest residential real estate managers and estate agency company has been appointed as managing agents of the new luxurious development, Devonbosch in the Western Cape.

Devonbosch, situated near Stellenbosch in the Cape Winelands is a bespoke mixed-use precinct which comprise designer apartments and penthouses, co-working offices, retail and light industrial spaces with proposed future projects including a hotel development, schools, universities and medical facilities.

The precinct is differentiated by its focus on quality of life and integration with the pristine natural surroundings of Stellenbosch.

Jonathan Kohler, founder, and CEO of Landsdowne commented: “This appointment further entrenches Landsdowne as a leading specialist precinct manager, alongside other high-end clients such as Steyn City in Gauteng, Conradie Park, and Paardevlei in the Western Cape.

“Our deep knowledge and expertise in managing mixed-use precincts, as well as our willingness to partner for the long-term, balancing the interests of both the developer and residents is what gave the developer significant comfort.

“Devonbosch is a major project that will only be built out in the next 15 to 20 years, depending on the rate of sales, and being able to balance the evolving interests of all stakeholders is key to its success.”

Reghard Goussard, Executive Director for Sales and Marketing at SquareTurn Developments, the developer of Devonbosch, commented: “Like any successful development company, we are only as good as the company we keep and how well we all respond to the market demands.
“We look forward to a mutually beneficial working relationship with Landsdowne as the development of Devonbosch shapes up.”

The difference between a precinct specialist and other types of managers is their understanding of the intricacies in how the Master Homeowners Association is governed and how the governance of the various body corporates under the Sectional Title Act ties in with the constitution of the Master Homeowners Association.

The main purpose of a Master Homeowners Association is to oversee and manage the affairs of a large community or development, and ensure shared spaces and amenities are well-maintained for the benefit of all members. These include security entry points, lifestyle centres, parks and play areas, pavements and roads.

“More residents will be appointed as Trustees to the various homeowner associations as the developments are built out and Landsdowne has the experience in balancing the interests of the developer and residents,” Kohler explains.

Landsdowne will manage the finances of the Master Homeowner’s Association and all sub-homeowner’s associations as well as body corporates within the Devonbosch precinct. An on-site estate manager has been appointed to ensure the smooth running of operations.

In addition, Landsdowne will manage the commercial precinct, handle tenant billing as well as manage budgets as, and when development phases are rolled out.

“As an asset manager, you need the right skillset to support and enhance the massive investment by the developer and ensure residents live in a well-managed and maintained environment,” added Kohler.

Devonbosch is a mega precinct, measuring 220ha in size, with 20ha of Phase 1 development rights already approved. It will boast more than 600 luxury apartments when completed, with an additional 3 000 homes planned. On completion, the mixed-use precinct will create employment for over 10 000 people.

The phased development will take 10-20 years to complete, depending on demand. The apartments and penthouses with mountain views measuring from 56m2 are priced from R2.495m.

Devonbosch features amenities including modern European designs, state-of-the-art security, rooftop terraces, underground parking, back-up power and park-like green spaces. Each precinct will have its own sectional title scheme but forms part of the Master Homeowner’s Association.

Western Cape Skyline

Semigration into the Western Cape bodes well for the residential property market, says Landsdowne

  • Western Cape is experiencing increased property activity than other provinces
    • Semigration contributes to sales and rental activity
    • Households relocate to the Western Cape as the region is perceived to have better-run municipalities and offer quality lifestyles
    • Buyers are finding good value for money properties
    • High demand for properties in secure estates and gated communities with lifestyle amenities
  • Demand for rental properties 
    • Limited rental stock leads to rental growth in some instances
    • One-bedroom apartments considered good buy-to-let investments
    • Low risk of tenant default  

16 April 2024 

Johannesburg, South Africa

Landsdowne Property Group (“Landsdowne” or “the Group”), one of South Africa’s largest residential real estate managers and estate agency company says semigration to the Western Cape remains strong as people search for ‘quieter’ lifestyles.

The group continues to see increased sales and rentals in the Western Cape compared to other regions as many households in provinces like Gauteng and KwaZulu-Natal sell their properties to move to the Western Cape.

Jonathan Kohler, founder, and CEO of Landsdowne commented: “Semigration remains one of the key drivers in the Western Cape property market. Increasingly, more people, and businesses move to the region as it is perceived to have better run municipalities, have reduced load-shedding stages, and offer unrivalled lifestyles away from the hustle and bustle of Gauteng for example.”

Semigration – the movement of people from one province or city to another has been a trend even before the Covid-19 pandemic in 2020. With flexible working models enabling people to work from anywhere, many people saw this as an opportunity to move to other areas.

Data from Lightstone shows that the Western Cape continues to benefit from semigration as ratepayers seek better-governed municipalities with good infrastructure, governance, and unrivalled lifestyles. During 2019 and 2023, sales of properties priced between R100 000 and R20 million rose from 23% to 27%, while Gauteng saw sales fall from 43% to 29%. The Western Cape also recorded the highest increase in sales activity in smaller towns compared to Gauteng and KwaZulu-Natal.

Landsdowne is a sales and rental agency with over 35 000 apartments and freestanding clusters under management. As demand for property increases, the group reported successful property sales in areas including Blouberg, Sandown, Parklands, Parkland Norths and Sunningdale.

Kohler said these areas attract buyers and investors due to the lifestyle offering with sandy beaches, spectacular views of Table Mountain, good infrastructure, various amenities including schools, hospitals and medical facilities, entertainment, and shopping centres.

“Buyers are increasingly purchasing properties in secure estates and gated communities offering ‘quieter’ lifestyles to raise their families. We expect this trend to continue into the foreseeable future,” Kohler added.

In these suburbs, the group has sold one-bedroom apartments priced from R795 000 in Cape Town and achieved up to R3.195 million for three-bedroom spacious family homes in Sunningdale. Some of the properties have a cottage or flatlet for additional income.

Kohler said that it’s currently a buyers’ market and savvy purchasers and investors are snapping up properties that are priced in line with market conditions. Though interest rates are still high and keeping many potential buyers out of the market – those buying in the Western Cape are now getting better value for money.

He said the price a seller achieves in Gauteng may not necessarily be enough to buy the same house in the Western Cape. However, when the market improves, the Western Cape will likely recover more quickly than Gauteng.

“Capital appreciation or how much your property will increase in value annually is important when buying property. Apart from location, buyers should seriously consider areas expecting a lot of development in the next few years, as this will drive prices” Kohler advised.

Rentals

Kohler said high interest rates have benefitted the buy-to-let market. Demand for rental properties is high as many people cannot afford to buy property now. In some instances, this has resulted in rental growth, especially in the Western Cape where demand exceeds available supply.

According to the PayProp Rental Index for the fourth quarter of 2023, the Western Cape recorded year-on-year rental growth of 3.9%. Average rentals reached R10 118 – a R382 increase from 2022 – making the Western Cape the most expensive province to rent property.  Tenant risk is also low with more than half of applicants falling within the minimum-risk bracket compared to 37.7% nationally.

Kohler said one-bedroom apartments in Cape Town make for a great investment with net rental yields of about 10.8%. “Generally, these types of properties are great buy-to-let property investments in South Africa as they are affordable and offer good value for money.”

In Sandown for example, we have successfully let one-bedroom apartments priced between R8 200 in established complexes to R11 500 per month for a unit in a new development, he said.

“As the search for better lifestyles continues, we expect the Western Cape will be a beneficiary of semigration – this will help increase sales and rental activities in the region,” added Kohler.Landsdowne Property Group (“Landsdowne” or “the Group”), one of South Africa’s largest residential real estate managers with over 35 000 apartments and freestanding clusters under management, says cutting interest rates would help stimulate the residential property market.

The South African Reserve Bank’s (SARB) started hiking interest rates in November 2021, and since May 2023, the bank has held rates steady at 8.25% following a cumulative 475 basis points increase.

Commenting on today’s interest rate decision, Jonathan Kohler, founder, and CEO of Landsdowne says: “The property market needs a cut in interest rate to stimulate and increase sale volumes.

“We continue to see increased activity especially in the Western Cape, mainly driven by semigration as many homeowners relocate from Gauteng and KwaZulu-Natal in search of quieter lifestyles.”

Data from Lightstone shows that the Western Cape continues to benefit from semigration as ratepayers seek better governed municipalities with good infrastructure, governance, and unrivalled lifestyles. During 2019 and 2023, sales of properties priced between R100 000 and R20 million rose from 23% to 27%, while Gauteng saw sales fall from 43% to 29%.
Kohler said buyers are increasingly purchasing properties in secure lifestyle and gated communities. “We are also seeing rising demand for rental properties – and this bodes well for the buy-to-let market.”

Landsdowne, which was recently appointed as asset managers for Orlando Towers Estate, the first sectional title and lifestyle development in Soweto, says many residents at this estate are first-time buyers which speaks to the importance of home ownership even in a difficult market.

“There is huge demand for property especially from first-time buyers – an interest rate cut will see an influx of these and other buyers back into the market.”

Contents of a home

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Home contents insurance covers the items inside your home. This ranges from furniture and appliances to clothing and electronics. In the event of theft, damage or loss due to fire or water damage, your policy steps in to provide compensation for the replacement or repair of your possessions.

Financial Protection for Your Belongings

Imagine coming home from work only to find that your valuables have been stolen or that a burst pipe has damaged your electronics beyond repair. Without home contents insurance, the cost of replacing these items can quickly add up. This can put a significant strain on your finances. However, if you have the right policy in place, you can rest easy knowing that your belongings are protected, and any covered losses will be reimbursed by your insurer.

Coverage Tailored to Your Needs

One of the key benefits of home contents insurance is its flexibility. You have the freedom to tailor your policy to suit your specific needs and lifestyle. Whether you own high-value electronics, jewellery, or collectibles, you can add additional coverage to ensure that your most prized possessions are adequately protected.

Peace of Mind for Every Homeowner

Home contents insurance isn’t just about replacing material items. It’s also about preserving your peace of mind. When you know that your belongings are covered in the event of theft, damage or loss, you can relax and enjoy your home without constantly worrying about the what-ifs.

Don’t Leave Your Belongings Unprotected

Your home is more than just a structure. It’s filled with memories, comfort and valuable possessions that you’ve collected over the years. Don’t wait until it’s too late to protect what matters most. Invest in home contents insurance to safeguard your belongings and secure your peace of mind. Are you ready to protect your home’s story?

Get a quote from any of the SA’s leading insurance providers by clicking on their logo below.

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Orlando Towers Estate

Landsdowne Property Group says a cut in interest rates will stimulate the market

  • Landsdowne sees increased buying activity in the Western Cape
    • Semigration continues as homeowners move out of Gauteng and KwaZulu-Natal
    • Buyers seek better managed municipalities and lifestyles
  • Demand for property
    • Buyers increasingly purchasing into secure lifestyle and gated communities
    • Huge appetite from first-time buyers

27 March 2024 

Johannesburg, South Africa

Landsdowne Property Group (“Landsdowne” or “the Group”), one of South Africa’s largest residential real estate managers with over 35 000 apartments and freestanding clusters under management, says cutting interest rates would help stimulate the residential property market.\

The South African Reserve Bank’s (SARB) started hiking interest rates in November 2021, and since May 2023, the bank has held rates steady at 8.25% following a cumulative 475 basis points increase.

Commenting on today’s interest rate decision, Jonathan Kohler, founder, and CEO of Landsdowne says: “The property market needs a cut in interest rate to stimulate and increase sale volumes.

“We continue to see increased activity especially in the Western Cape, mainly driven by semigration as many homeowners relocate from Gauteng and KwaZulu-Natal in search of quieter lifestyles.”

Data from Lightstone shows that the Western Cape continues to benefit from semigration as ratepayers seek better governed municipalities with good infrastructure, governance, and unrivalled lifestyles. During 2019 and 2023, sales of properties priced between R100 000 and R20 million rose from 23% to 27%, while Gauteng saw sales fall from 43% to 29%.
Kohler said buyers are increasingly purchasing properties in secure lifestyle and gated communities. “We are also seeing rising demand for rental properties – and this bodes well for the buy-to-let market.”

Landsdowne, which was recently appointed as asset managers for Orlando Towers Estate, the first sectional title and lifestyle development in Soweto, says many residents at this estate are first-time buyers which speaks to the importance of home ownership even in a difficult market.

“There is huge demand for property especially from first-time buyers – an interest rate cut will see an influx of these and other buyers back into the market.”

Landsdowne-Property-Esate

Landsdowne Property Group eyes international expansion to diversify its business

  • Landsdowne looks to initially enter the Middle East and Dubai real estate markets
    • Strong return on investment
    • Tax incentives
    • Growing economy and population
  • Awarded Best Lettings Agency in Africa as well as Best International Lettings Agency at the International Property Awards for the second consecutive year

25 March 2024 

Johannesburg, South Africa

Landsdowne Property Group (“Landsdowne” or “the Group”), one of South Africa’s largest residential real estate managers with over 35 000 apartments and freestanding clusters under management, is eyeing international expansion opportunities. This follows the company winning prestigious international property awards for the second year running.

Landsdowne was awarded the coveted Best Lettings Agency in Africa as well as Best International Lettings Agency at the prestigious annual International Property Awards, held at the Savoy Hotel in London last month. 

Jonathan Kohler, founder and CEO of Landsdowne commented: “I am so proud of the Landsdowne Property Group team. These awards show our consistency and unwavering commitment to not only being the best in Africa, but the best in the World. 

“It underpins our ambition for international expansion in 2024 and align with our vision to provide the world’s best property services, positively impacting our clients’ lives and optimising their asset values.”

Kohler added that Landsdowne is eyeing expansion opportunities, particularly, Dubai and the Middle East which offer strong return on real estate investments, tax incentives, a growing economy and population. Dubai has a robust tourist economy, and this bodes well for residential rentals.
According to the Deloitte Middle East Real Estate Predictions 2024 report, the Dubai residential market recorded 18% and 26% increases respectively for sales and rentals in 2023. Gross rentals rose from 6.8% in 2022 to 7.2% due to high demand in various areas.

“We see huge opportunity in lending our property management skills and expertise in international markets while continuing to leverage and tap into new markets in South Africa,” Kohler said.

The International Property Awards, now in their 32nd year, honour outstanding projects and professionals across 45 residential and commercial categories worldwide. Awards span Architecture, Development, Interior Design, and Real Estate, covering nine regions including Africa, Asia Pacific, Arabia, Canada, Caribbean, Central & South America, Europe, UK, and the USA. A rigorous judging process involving over 90 independent experts assessed more than 2 000 entries from 126 countries to determine the winners.

Entries underwent meticulous evaluation, considering criteria such as design layout, quality, architecture, services, security, innovation, originality, marketing, and commitment to sustainability.

Landsdowne was recently appointed as Orlando Towers Estate, the first sectional title and lifestyle development in Soweto.

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Landsdowne Property Group

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Landsdowne Property Group

Landsdowne is an independent property service company in Johannesburg that provides both financial and operational property services to investors and owners wanting a specialised investment, property management, sales and rental service under one roof.

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4 Sandown Valley Crescent, 4th floor, Sandown, Johannesburg, 2196

4 Sandown Valley Crescent, 4th floor, Sandown, Johannesburg, 2196

+27 (0) 87 711 1285

+27 (0) 87 711 1285

<a href="mailto:connect@landsdowne.co.za">connect@landsdowne.co.za</a>

connect@landsdowne.co.za

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