JOHANNESBURG – Although second home buying in South Africa does not appear to have fallen through the floor, a survey done by the FNB Estate Agent Survey points to the estimates in recent quarters dropping slightly as a percentage of total home buying.
The demand percentage for the buying of second homes in South Africa was mildly lower in the third quarter than in the second quarter. That was the second successive quarter of decline.
There was a quarterly decline in the percentage of investment home buying.
According to FNB household and property sector strategist, John Loos, this is a mild increase in the offloading of investment properties, and the pricing power of sellers of these homes appears reduced.
Loos explained, “Perhaps it is to be expected that, in these tougher economic times, secondary home buying overall would be placed on the backburner by many, given its non-essential nature, and that the levels of such home buying would be mediocre at best.”
The main category of buying a second home is the ‘buy-to-let category’. There was a great decline that showed in this category in the estimated percentage in the latest survey.
In the survey, the respondents estimated buy-to-let buying at 8.23% of total home buying, to be slightly down on the 9.77% of the second quarter.
The estimated holiday home buying percentage, has not shown a decline.