Value trumps volume when it comes to the resurgence of the property market

Want to know where the South African property market is at, now that we're over two years passed the hard lockdown/s of COVID-19? According to Lightstone data, the market is recovering, just not in the way you may have expected.

It would seem that value trumps volume when it comes to the resurgence of the property market.
According to Hayley Ivins-Downes Head of Digital at Lightstone, automotive and business assets, total transfers for Q1 and Q2 in 2022 amounted to 129 642, marginally down from 2021 when 130 102 transfers took place in Q1 and Q2.

However, she says the total purchase price soared to R156b in 2022, well up on the R69b recorded in 2020 and the R112b in 2019.
The data suggests the property market was continuing its recovery from Covid-19 and showing signs of growth - despite both local and global economic and political challenges.
While the total number of transfers had fallen marginally, there had been a sharper decline in the volume of bonded transfers, 10.8% down in Q1 of 2022, and 5.9% down in Q2. Ivins-Downes says bonded transfers in 2022 dropped to 68 731, 53% of all transfers, from 74 986, 57% of all transfers in 2021.
The total purchase price of all properties had increased from R153b in Q1 and Q2 of 2021 to R156b in 2022. The total purchase price of bonded properties declined from R104b in 2021 to R101b in 2022.

While Gauteng accounted for 37% of all transactions in Q2 of 2022 compared to 24% in the Western Cape, sales values were the same in both provinces at R31b (36%) of total sales. This suggested that sales in the Western Cape were commanding higher values.

In terms of provincial mix, Ivins-Downes says most transactions took place in Gauteng, with the Western Cape second and KwaZulu-Natal third.