Distressed sales in the South African residential property market involve selling properties quickly at prices below their market value due to the seller's financial difficulties, providing buyers with cost-saving and investment opportunities, while helping sellers in financial distress expedite property disposal. Awareness of legal complexities and property conditions is crucial for both parties.
In this episode of The Property Corner with Rowan Alexander, we explore the topic of distressed sales and how they are rising in South Africa. We unpack a report by Lightstone which states that distressed sales in South Africa have risen by 1.7% between May 2022 and May 2023.
Lightstone’s property report on distressed sales: https://www.lightstone.co.za/newsletters/property/2023/Oct/A4Oct23
00:00 Introduction
00:20 Lightstone report figures of distressed sales in South Africa
01:10 What the rise in distressed sales indicates for property in South Africa
01:17 How sales and execution were measured in the past
01:30 Bank processes to help consumers sell homes prior to getting into default where legal action is taken
01:50 How specific bank processes benefit both sellers and the banks
02:10 First buying trend measure that Lightstone identified to determine whether distressed sales are rising and how they found this information - Buying and reselling within two years
02:23 The figures that Lightstone is using to identify distressed sales
03:00 What factors cause “buyers in distress”
03:26 Second buying trend measure Lightstone has identified - The loan to value & number of bonds people are applying for
06:08 Is the motor vehicle trade in South Africa experiencing the same trends as the residential property market
Subscribe to be notified of our next episode where we will be talking about how property owners in distress can avoid getting to a point of having a sale and execution.
Find property for sale in Cape Town or explore our property development on our website www.asproperty.co.za
