Seeff Eswatini’s Licensee, Anthony McGuire says despite an increase in the prime lending rate to 8.5%, the property market is still favourable. The company states that the residential market is seeing the highest activity for housing below the E2 million bracket, and for vacant land below E500, 000. McGuire notes that residential buyers in the current market tend to be young professionals, with Nkoyoyo, Ezulwini and Hawane being the major hotspots at the moment.
Photo Credit: https://www.seeff.com/branches/eswatini/5782/\
Article Supplied by Seeff Eswatini
Much like the rest of the world, Eswatini has seen some economic stagnation over the last two years and the Kingdom now looks forward to growth and increased activity in the residential and commercial real estate sectors.
On the upside, we are particularly encouraged by numerous construction and infrastructural projects, some already underway and others due to commence later in 2022 and in 2023. These will bring much needed employment and economic stimulation, the benefits of which will include the property market.
The current prime lending rate is still at 8.5% percent (mortgages tending to be 0.5 to 3 percent above this dependent on client profile), but this is expected to increase and ultimately line up with that of South Africa. Nonetheless, it remains favourable for local real estate.
While the real estate market is still recovering, there are green shoots. Seeff, for example, recently sold a house for E6 million in Ezulwini which, is a rare occurrence in the current market and is encouraging.
Residential property market overview
The residential market is seeing the highest activity for housing below E2 million and for vacant land below E500, 000. Higher priced properties tend to sit on the market and unless sellers are extremely flexible on their pricing, they tend not to move.
Residential buyers in the current market tend to be young professionals. Ezulwini remains in demand and we have noted that Nkoyoyo and Hawane are hotspots for those looking to get into the market now with a view to capitalizing on long-term future growth and increased residential demand.
People are mostly selling due to financial pressure, looking to downsize, or because they are leaving the country. Very few are selling with the view to upscaling. We do, however, expect the market to gradually improve over the next 12 to 18 months.
There are currently a tremendous number of options on the market for buyers, and sellers therefore need to be mindful of price and be realistic if they are genuinely wanting to sell. Overpriced properties simply do not sell. If your property has been on the market for as long as 90 days, has received sufficient exposure and has still not sold, he says you would unfortunately then need to seriously consider price, or withdraw your property from the market until a later stage.
Residential rental market stabilizes, opportunities for landlords
The rental markets are slowly picking up with an increase in foreign nationals returning to the country to work for various organizations which has seen the resurrection of a struggling sector of the rental market.
That means higher demand for houses in the E15, 000 to E25, 000 price ranges. These are upmarket houses in Mbabane and Ezulwini and we are struggling to meet demand for well built houses particularly in the Ezulwini area. People who are interested in leasing homes that would fit an executive profile are asked to contact Seeff on 24163205.
Aside from the upper end of the market, the majority of demand is in the lower to mid-range between E4, 000 and E10, 000. There is definitely a gap in the market for developers for well-constructed and finished apartments along the Mbabane Manzini Corridor.
There are still many tenants who are struggling in the current economy with more tenants defaulting over the last 18-months. Landlords are therefore best advised to retain good tenants and to consider a reduction in escalations to assist those who are experiencing difficult times.
Landlords also need to carefully vet tenants to avoid finding themselves in trouble. We recommend using a reputable professional agency attached to the Eswatini Association of Estate Agents.
Commercial property market update
In the commercial sector, Seeff has noted a pickup in demand for vacant commercial land along the Mbabane Manzini corridor. Demand for well-priced industrial property also remains high, particularly in the Matsapha Industrial site.
Buyers in the industrial and commercial sectors are typically companies and those looking to speculate on increasing vacant land prices as supply dwindles. Industrial buyers are more often than not buying for their own use. There are also businesses who want to move to their own space due to rental rates escalating to a level where it now makes financial sense for them to own their own premises rather than renting.
Aside from residential, Ezulwini is also a hotspot for commercial property and vacant land for speculation purposes while Matsapha is sought-after for industrial property.
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