How national elections can affect the property market
Buyers' and sellers' decisions can be swayed during general elections, as opposing political parties influence how municipalities are run. Historically, the real estate market has experienced varying degrees of change during elections. When uncertainty is rife, markets tend to see many morehomes listed for sale or rent. As things start to settle and a clear outcome is expected, the market rebounds and returns to normal.
A hesitant state
Whilst buyers and sellers might be on the fence when picking a political side, this can spill over into their decision to move to a certain neighbourhood or remain in their current one. Consumer confidence is key when managing a realistic outlook on the future of real estate. Property purchases cannot afford to be delayed or in a stagnant position for too long, as this decreases morale and can negatively affect price points in different areas. Fluctuating interest rates due to unprecedented government policies and market expectations can also be a reason for an unstable period in real estate. Buyers and sellers will be looking at borrowing costs in terms of property purchases. High interest rates can lessen affordability and price out numerous consumers from sought-after areas.
On the right side of regulations
Policy changes may come about as a result of municipalities coming under new management. This can result in first-time buyers being especially cautious with purchasing properties near election times. Economic stability is of utmost importance when making a huge financial decision. National elections can provide an environment for volatile markets and economists usually advise against making permanent or long-term decisions during this time. Consumers who keep their finger on the pulse of financial news will understand that elections can be both positive and negative for the development of residential areas.
Projects that focus on new infrastructure, the creation of convenient amenities and improved public transport routes in the area can significantly increase property values. Consumers will find a location more attractive depending on what it has to offer them and how it will upgrade their quality of life.
Foreign interest and property gold mines
Political shifts and investment opportunities may sway foreign investors’ perceptions. Lower property prices may encourage them to buy in more affluent areas, as these houses will appreciate once more once the elections are over. Foreigners generally have the advantage of a strong exchange rate and wield buying power in South Africa. With considerable foreign investment, the flow of capital to a country’s economy is a great injection into the economy.
Regional varieties
As with all elections, regional votes and divisions of municipalities will result in the property market varying across provinces. Local conditions can affect rates, housing supply and price demands by sellers. Depending on policies instituted by the new government’s legislature or the current party’s updated addendum, property agencies should make every effort to ensure their practitioners are up to speed with innovative ways to continue marketing to buyers during this time andencouraging sellers to list with their company.
REALGLEN Properties understands that with a political climate such as ours, you would be wise to test the waters before jumping into a property with both feet! However, our goal is to guide you to the ultimate dream home or rental opportunity where you can enjoy the best areas in the country. With our specialised area of expertise being Gauteng, the city of Gold beckons to all those who want to excel and live in the fast lane. Speak to one of ourexpert property managers today.