Reece Daniel
Serenity Hills Developer
In 2024, the South African housing market experienced overall positive growth. Several factors contributed to this improvement: implementing new government policies, a move towards a more stable economic climate, and a recent interest rate cut. These developments have been favourable for the market. On the KZN South Coast, property demand has been on the rise. Reece Daniel, a developer from the eco-friendly estate Serenity Hills, offered some insights into the anticipated trends for 2025.
“We have observed an upward trend in the property market, with both local and international buyers gaining confidence after the May elections,” said Reece Daniel. “The South African Reserve Bank’s decision to cut the interest rate by 25 basis points in November, reducing the prime lending rate to 11.25%, has further boosted demand. In the latter part of the year, we’ve seen several interesting trends in property demand and buyer behaviour. We expect this positive trajectory to continue into 2025.”
Trend #1: Demand for land
Daniel said there had been a significant increase in buyers choosing land sales over pre-developed properties: “With the recent reduction in interest rates and discussions about potential further cuts, clients are showing strong enthusiasm for our land parcels, which offer exceptional value for money as they come platformed, and with connection to all utilities within a residential estate.”
Trend #2: Buying land for cash
“Clients are also choosing to buy land as it allows them to manage their expenses more effectively,” continued Daniel. “By securing the land with cash and financing the construction through a home loan, they have more flexibility to design and build their dream home without facing the financial strain of a large, upfront investment.”
Trend #3: Buying for the future
Another notable trend is the interest of buyers aged 40 and above. “Rather than buying a home for now, these land purchases are more strategic, with buyers looking to build a home in the future or as an investment opportunity.”
Trend #4: More first-time buyers
Daniel said that the interest rate cut has poised the South African housing market for a much-needed recovery, with more first-time home buyers likely to invest: “Homeownership is now more accessible to first-time buyers as there are lower monthly repayments on home loans. This is the right time for investors waiting to enter the property market.”
Trend #5: Self-sufficient estates
Finally, Daniel said that while the stability of the national grid has secured investor confidence, future-focused buyers are still looking for secure estates that offer the foundations for getting off-grid, both in terms of electricity consumption and water use.
“The semi-gration trend towards coastal towns such as Margate is only set to continue as people seek that holiday lifestyle,” says Daniel. “Demand will continue to grow for estates such as Serenity Hills, which meet this need while incorporating self-sufficient elements. This includes energy efficiency built into the design so buyers building a property can factor in off-grid living. There are also water retention options and on-site reservoirs to supplement water supply to residents – aspects the modern buyer is looking for.”