Demand for residential property worth below R3 million is recovering, according to Samuel Seeff, Chairperson of the Seeff Property Group.
(Related article: Property guru Samuel Seeff bares his soul about money)
“The interest rate is, clearly, the big factor,” Seeff told eNCA’s Jane Dutton.
“I’ve been in the industry for 35 years and I’ve never experienced rates at this level before,” said Seeff.
South Africa’s typically conservative Reserve Bank slashed interest rates by 275 basis points so far in 2020 to 3.75% - a level last seen 50 years ago.
The prime lending rate of 7.25% is at a 47-year low.
For some properties, it may even be cheaper right now to buy than to rent.
“At 7.25%, relative to renting a property; you could actually own,” says Seeff.
“It’s really great to see!”
For more detail, watch Dutton’s interview with Seeff below.
According to Seef, the property market has emerged under #lockdown #level3 with high demand for real estate priced under R3-million. @janedutton spoke to Samuel Seef from the Seef Property group about why this is the case. #eNCA Courtesy #DStv403Posted by eNCAnews on Tuesday, 7 July 2020
This article first appeared on CapeTalk : 'Demand for property below R3 million is starting to recover'