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.”