Through an auctioneer's lens: turning market challenges into investment advantages

Source: Roy Lazarus of Park Village Auctions.

Despite ongoing economic challenges, the South African property sector remains resilient, supported by insights from the South African Reserve Bank and the FNB Property Barometer.

Lazarus highlights how this dynamic landscape presents opportunities for investors who approach it with careful planning and market knowledge: Economists are projecting modest property growth of approximately 4%, reflecting an increase in buyer demand despite a slowdown in overall market activity. In other words, buyers haven't lost their appetite for properties that offer genuine value."

Regional variations remain pronounced, with Lazarus pointing out the Western Cape's outstanding performance against other provinces, driven by its robust local economy and continued "semigration" trends. Gauteng remains a firm favourite for investors targeting high-density residential developments optimally located near business districts as its promising job market continues to attract ambitious up-and-coming professionals.

"Affordability is the byword leading into the new year," notes Lazarus. He continues, "While further interest rate cuts can stimulate the market, rising fuel prices and the cost of living will have buyers seeking out 'deals' to lower their principal investments—a trend we have witnessed in the auction segment.

"Interestingly, despite traditional property sales slowing, auctions are enjoying increased participation from investors looking to acquire properties at market-related prices, especially those arising from bank sales, estate liquidations, or urgent sale scenarios."

Lazarus further attributes the heightened engagement to online bidding improvements, which have "democratised the property acquisition process, allowing investors from diverse geographical locations to participate."

For those seeking to capitalise on current market conditions, Lazarus offers some practical advice.

"Do your homework and be ready to move quickly when the opportunity arises. Investors who have cash reserves, comprehensive market research, and the ability to make swift, informed decisions will be the ones who turn market complexity into a personal advantage."