Despite the consistent interest rate hikes meted out by the Central Bank of Eswatini, it appears residential property has not been performing all too badly, especially since the start of April this year.
This was disclosed by Sales Team Leader at RE/MAX Real Estate Specialists Eswatini Ellroy Johnston in a conversation with this publication.
He acknowledged that the residential property market struggled at the beginning of the year due to a number of factors which of course included the rise in interest rates.
Johnston said demand picked up towards the end of March specifically for residential plots.
“Typically, residential plots in most cases perform well and are always in demand, but they must be correctly priced. Plots in the E380 000- E500 000 price range have been doing well.”
When asked about the hot spot areas for these plots, the broker said the Mbabane- Manzini corridor has been behind the resurgence of the market.
He further noted that in their analysis and observation, the people purchasing plots at the moment are mostly high-net-worth individuals or individuals with one or two properties.
“The interest rate hikes have affected several people who want to purchase property but do not have collateral or haven’t raised sufficient deposit. We have noted that buyers who have a property or other collateral are purchasing these plots.”
On the house demand front, the experienced broker noted that properties at the higher end of the market have been struggling.
“Properties in the upper end of the market, particularly those ranging from E2.5 million upwards are struggling to sell. The sweet spot at the moment is properties in the E1.2 million to E1.5 million range, as these normally perform well regardless of the market conditions.”