COVID-19: Property prices to fall this year

File: FNB’s latest property report says properties valued at less than R750,000 should be more resilient.

File: FNB’s latest property report says properties valued at less than R750,000 should be more resilient.

AFP/Eric Baradat

JOHANNESBURG - The economic impact of COVID-19 will see property prices fall by about 5 percent this year.

But FNB’s latest property report says properties valued at less than R750,000 should be more resilient.

Interest rates have been cut by 275 basis points so far this year to cushion against the impact of COVID-19.

READ: SA lockdown: High-end property owners downscaling

But consumers are still struggling. On average, for all South African properties, the final selling price was 12 percent below the asking price between May and June.

About 60 percent of properties in the bracket below the R750,000 mark fetched their asking price or more.

Source
eNCA