Only one-third of South African estate agents met their sales targets in 2024

Only a third of estate agents in South Africa reached their sales targets in terms of volume and value in 2024, slightly down from 2023, but expectations are high for 2025, according to the property market intelligence company Lightstone Property.

Lightstone business development executive Estani Marx said their latest survey showed that 86% of estate agents anticipate they will reach volume targets this year, and 85% believe they will reach value targets.

“Estate agents say younger buyers will play an increasingly important role in South Africa’s residential property market in 2025, as will unemployment and political certainty,” he said.

Lightstone’s recent annual sentiment survey also found that while economic uncertainty remained a priority issue, it was viewed as marginally less important than 12 months previously, perhaps indicating increased confidence in the Government of National Unity’s stewardship of the economy.

Marx said estate agents had also placed greater emphasis on the role foreign investors would play, while the tourism industry remained an important factor in residential property sales.

The past 12 months were challenging for most estate agents, with nearly two thirds (61%) saying they did not meet their sales targets in terms of volume in 2024, significantly up on 45% in 2023. Similarly, the numbers were almost the same when measuring the value of sales.

Despite underachieving in 2024, their expectations to reach volumes and value targets were well up on the 73% and 72% expressed 12 months ago.

“The South African Reserve Bank (SARB) cut interest rates twice in 2024 and expects to make further cuts in 2025, which should help boost the property market. The continued success of the GNU will provide stability and confidence,” said Marx.

Last year, lifestyle and amenities, and security topped the wish list of home buyers, but the categories had traded places, with 33% (25% in 2023) saying lifestyle and amenities were most important, with security next at 19% (33% in 2023). Working from home was constant at 19%, while buy-to-rent increased sharply to 11% from 6%.

“Downscaling property size because of lifestyle changes was the main reason for sellers wanting to move on, followed by downscaling due to financial difficulties and relocating to another province (16%) or city or town (11%). Sellers emigrating dropped from 16% to 9%,” said Marx in the survey.

BUSINESS REPORT