Tony Clarke, MD of the Rawson Property Group, explains.

“Property market demand isn’t driven purely by investors – it’s driven by people needing a roof over their heads,” he says. “That need doesn’t disappear just because our economy hits a speed bump, and the resultantly reliable demand makes property a much more resilient asset class during otherwise unstable or volatile economic times.”

That’s not to say the economy has no effect on the property market at all, however.

“People will always need homes, but the economy does influence how they go about achieving this,” Clarke acknowledges. “We tend to see fewer people taking the leap from renter to first-time buyer when times are tough, for example. That’s not necessarily a bad thing for the market, though – property goes through cycles and a dip in one segment often boosts another. In this case, higher rental demand creates great opportunities for buy-to-let investors.”

When it comes to attracting potential buyers and investors, Clarke says South Africa is actually in an enviable position, regardless of the dip in the GDP.

“A solid middle-class is vital for any country to sustain a healthy property market,” he explains, “and in South Africa, we have one of the fastest-growing middle-classes in the world. This is a huge asset when it comes to maintaining market activity, and certainly helps keep our market bullish despite the political and economic hiccups we have from time to time.”

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