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Over the past 9 weeks, since the implementation of a nationwide lockdown on 27 March due to COVID-19, sales contracts worth more than R200 million were signed at Val de Vie Estate, including a record price for a residential property of R35 million. These figures are on par with the R1.2 billion in property sales in 2019.

When home-loan interest rates fall as much as they have this year, home owners often start to think about using the equity in their properties to consolidate debt and enjoy the convenience of making only one repayment a month - but they should be very cautious when taking this step, says Gerhard Kotzé, MD of the RealNet estate agency group.

The recent interest rate cut announced earlier this month, as an attempt to curb economic decline as a result of COVID-19, has brought South Africa’s cost of lending to the lowest level on record. South Africa’s prime lending rate is now sitting at 7,25%.