Berry Everitt
CEO
Chas Everitt International Property Group
Johannesburg, South Africa
www.chaseveritt.co.za
Tell us about your firm.
We’re a 44-year-old company that’s as nimble as a startup when it comes to developing new technologies, sharing ideas and collaborating creatively to ensure the best solutions for our clients. Our common goal is to make customers happy and retain them for life while also maximizing revenue growth. We’re endlessly curious about our customers’ specific needs and dreams and, in alignment with our values, we place great emphasis on accountability—both individual and corporate. Our approach to negotiation is that it should be principled and rooted in research, facts and logic rather than emotion or personality. This empowers our agents to achieve balanced outcomes that are satisfactory for all parties, positioning them as trusted advisors in the long term.
Please describe your current housing market.
South Africa’s economic recovery is rapidly gaining momentum as a result of the establishment of a Government of National Unity in June, and the real estate sector is poised to follow suit as interest rates continue to come down and it becomes easier to qualify for a home loan and afford the monthly repayments. As it is, there has been growth in both demand and sales since the start of the year.
The national average freehold home price is currently R1.5m (approx. $83,000 USD), while the average price for sectional title homes is currently R1m (approx. $59,000 USD). Prices are stable, however, there’s a shortage of inventory in Cape Town, so prices there are accordingly much higher than in the rest of the country. But there’s resistance now among buyers, and several new developments coming on stream will make this market more competitive. There’s a surplus of stock in other areas, and prices aren’t expected to rise substantially in the short term.
What home features or amenities are especially popular with your buyers?
Green features such as solar power systems, solar geysers and rainwater storage tanks; sleek, modern kitchens with high-end appliances; smart technologies; excellent security provisions; high-speed internet connectivity. Among those buying apartments, there’s also a growing preference for mixed-use developments with retail and other amenities right on the doorstep, and sometimes in the same building.
What are some of the most important trends in your market?
The most important macro trends currently affecting the South African real estate market include:
Rising consumer and homebuyer confidence. The latest Absa Homeowner Sentiment Index shows that overall consumer confidence in the property market has been trending upward for the past year, rising to 84% in the second quarter of this year from 78% in the same period of 2023. The “buy” sentiment showed an even bigger YoY improvement of 12%, with many of those currently renting but planning to buy soon noting that they had already saved enough to afford a deposit for a home.
- Rapid urbanization, especially among the young, which will boost the development and take-up of more affordable housing in city centers and inner suburbs.
- Falling interest rates, which will make housing more affordable and spur the return to the market of first-time buyers, but also assist landlords by reducing rental defaults.
- Huge government and private spending in the medium term on capital projects that will reduce unemployment and enable more people to enter the formal housing market.
- Rising demand for homes in gated lifestyle estates and sectional title complexes, collectively called “community housing schemes” in South Africa.
Are you seeing much foreign investment—and, if so, from which countries? How has this changed in recent years?
Foreign purchasing currently accounts for only about 3% to 5% of home sales in South Africa, but a much higher percentage in terms of the value of sales. Most foreigners prefer to buy in lifestyle estates where home prices tend to be higher, or in more affluent suburbs—and they can afford to do so because of the favorable exchange rate of the rand to dollars, pounds or euros. South African real estate offers them incredible value for money.
At current exchange rates, $1M USD will buy around 192 square meters of prime property in Cape Town, for example, and as much as 500 square meters in Johannesburg compared to 97 square meters in London, 55 square meters in Sydney, 34 square meters in New York, 22 square meters in Hong Kong and just 16 square meters in Monaco, the world’s most expensive real estate market.
The cost of living is also substantially lower in South Africa than in many other countries.
The majority of overseas buyers are still from the UK, Germany, the Netherlands and other European countries, but we’re seeing increasing interest now among buyers from the U.S. and Canada.
Another big change we’re seeing is people who used to come to South Africa only during the Northern hemisphere winters are now living here permanently. The country is also attracting increasing international attention as an excellent (and affordable) retirement option.
What advice do you have for foreign buyers interested in buying in your area?
We suggest that prospective buyers come to South Africa and travel around to see and experience different areas before deciding where they would like to live. They should also only deal with agents from a trusted company like Chas Everitt.
What do you love most about living in your area?
The people. South Africans are rightly renowned for their friendliness, hospitality and sense of humor. We also have a strong sense of community and, due to our unique history, we’re highly tolerant of diversity, which isn’t the case in many other parts of the world.
The weather and our spectacular scenery. Large parts of South Africa are sunny and bright even in the winter, which enables us to enjoy outdoor activities, lots of sport and the country’s natural beauty and wildlife all year round, whether we’re in the mountains, on the beach or in our favorite game reserve.
The food and wine. High-quality, fresh and delicious food is readily accessible at very reasonable prices compared to many other countries. South African wines are also recognized as some of the best in the world.
Low cost of living in world terms. This enables residents of South Africa to enjoy a better quality of life. Education, health services, groceries and housing all cost much less here than in Australia, Europe, the UK or the U.S., for example.
How does being part of Leading Real Estate Companies of the World® support your business?
It’s like having an extension of ourselves in more than 70 other countries.
For more information, visit https://www.leadingre.com/.
