You can also listen to this podcast at iono.fm.
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Welcome to The Property Pod, South Africa's leading property investor podcast. This weekly podcast show features insider insights from leading executives, analysts, developers and entrepreneurs in SA's real estate industry.
Soweto is South Africa's largest town and a historic region of the country given its apartheid past. Today, the district is even bigger and more vibrant. The grounds are even busier.
Read: Orlando Towers Estate looks set to enable Soweto residents to invest in real estate
It is also home to famous landmarks such as Kliptown, where the Freedom Charter was drawn up, the Hector Pieterson Monument, and Vilakazi Street, once home to the late President Nelson Mandela and Bishop Desmond Tutu, and is a popular tourist destination in metro Joburg. It's also an area. , both Nobel Peace Prize winners.
According to property company Seef Property Group, Soweto is one of the most dynamic property markets in the country and the fastest growing market in Gauteng.
To share more insight into this and what's going on in Soweto's residential property market, Kosi Sibiya appears on this latest podcast. Sibiya is one of the licensees of Thief's Soweto branch of the business, along with her partner Findim Phalele.
Highlights of her interview are below. You can also listen to the entire podcast above or download it from iono, Spotify, and Apple Podcasts.
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According to Lightstone, Soweto has about 37 suburbs and more than double that number, or about 168,000 properties. [those in] 1994. This is significant growth. What do you think is behind this continued growth in Soweto?
“[It’s] Because Soweto is still popular. Many buyers also have families here. It's also a good investment. Lightstone shows property values are growing noticeably faster compared to other areas of Johannesburg…
“Rising interest rates have left buyers struggling, but Lightstone research has recorded well over 2,000 property transactions in excess of R1.1 billion in Soweto in the past year. It’s a great place for people on the price side and first-time home buyers who can sell or rent later, buy something bigger or move to a better suburb.”
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Is it an election year hiatus or the effects of rising interest rates in the SA housing market?
As a Seeff Soweto franchisee, what other trends have you noticed in that market?
“As I mentioned earlier, rising interest rates are creating difficulties for buyers. They end up renting instead of buying. But for those who can afford it. [to buy], now is the time to buy. ”
So do you think Soweto is better for the rental market at the moment?
“Yes, because we still sit in our office.” [between] 108 and 200 files [on] This is a property that our company manages for rental. ”
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However, it is very interesting to note that despite the high interest rates, there were sales or transactions worth over R1 billion in Soweto alone. What are some of the prices achieved?
“The price is almost R1.2.” [million or] Lower, but affordable ones range from R500,000 to R950,000. Therefore, there are buyers eligible for these amounts.So, if [prices are] Above R1 million, the issue of ineligible purchasers arises. ”
What do you expect to happen when interest rates start to fall later this year, preferably into 2025?
“To be honest, the market is going to boom because the customers who are renting right now can't afford it.” [to buy]But if interest rates drop next year, you'll be eligible to buy. ”
“So it’s going to be a good market.” [in 2025]Then the market will be booming. ”
Before we go to Kosi, would you like to share a little about yourself and your business partner, Soweto licensee Findi? How long have you been in the real estate game?
“[I’ve been] I've been in this industry for 20 years. In 2005, she joined Property Realty and later joined another company. Thief wasn't on my mind at that time. I worked for him at Realty and then joined another company in 2007.Now [with] I've been a thief for about 14 years, but 10 years ago I worked as a real estate agent. ”
“Then in 2019 I decided to become a licensee. Seeff is a well-known company and a good brand for me, so I had no intention of changing to another brand. I know them as “Kosi Thief”… They don’t even say my last name. They say 'Koshi working at Thief' and we are delighted to be part of this famous brand. ”
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“We won't see a residential real estate boom for much longer.”
Do you have any tips for aspiring entrepreneurs who want to someday become a real estate agent or licensee of their own branch?
“You know, I usually tell other agents that, because before I became a licensee, other agents said to me, 'Cosi, you're in trouble. , all of our principals train us because we work so hard.' [using] your name. So what are your tips?
I told them that being in this industry requires discipline. You need to be honest with your customers and provide good service to earn their trust…”
“We have eight employees and we have a partner, Phindi Mphahlele, who we work with. We support each other, so we are happy to have her on board. . She's also a good worker. So so far we've been doing very well.”
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