The current property market plays a significant role in determining a property's value.
In Gauteng’s sales market, buyers are spoiled for choice - thanks to ongoing semigration to coastal hotspots, a sluggish economy, political uncertainty, and global inflation placing pressure on household budgets.
A buyer’s market means an oversupply of properties, forcing sellers to lower their asking prices. Banks become more competitive, offering favourable bond terms to win over clients, while qualified buyers feel confident enough to make cheeky offers.
Sellers often attach personal value to their properties - both emotional and financial. This makes it difficult to objectively assess a property's true market worth, often resulting in unrealistic pricing, missed sales deadlines, and homes that sit unsold.
Factors such as what the seller paid for the property, how much they’ve spent on renovations, their emotional attachment, or what they need for their next purchase have little bearing on market value. Buyers assess a property based on current market conditions and comparable sales, not the seller’s personal investment.
In addition to market sentiment, economic factors also play a major role in shaping property values.
When interest rates fall, property becomes more affordable, encouraging tenants to enter the market as first-time buyers and enabling homeowners to upgrade. This increased demand can drive prices up.
Other considerations, such as location, property condition, age, layout, and prevailing market trends, also significantly affect a home’s value.
Overpricing a property in a stagnant market can result in it sitting unsold for an extended period - a stressful and costly scenario, especially if the property is vacant and not generating rental income.
A listing that remains on the market for too long often signals to buyers that it is either overpriced or has underlying issues - deterring interest even further. This can lead to the dreaded “stale listing” effect, where properties linger on the market and are overlooked, even after price reductions.
Eventually reducing the asking price may also create the perception that the seller is desperate or that the property is worth less than market value, inviting offers well below its true worth.
To accurately determine a property's value, reputable property practitioners rely on a Comparative Market Analysis (CMA).
This approach assesses:
The goal is to establish a realistic and marketable asking price - aligned with what buyers are currently willing to pay. Knowing your property’s market value helps set a fair and competitive price that will attract the right buyers.
In a market where buyers are well-informed and sales stock is high, pricing your property objectively and competitively is key to standing out. Work with a knowledgeable agent, stay aligned with local trends, and remain open to reasonable offers to ensure the best possible outcome.
In a market where buyers are well-informed and sales stock is high, pricing your property objectively and competitively is key to standing out.
Work with a knowledgeable agent, stay aligned with local trends, and remain open to reasonable offers to achieve the best possible outcome.
Stay informed with our Randburg Area Report Q2 2025
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