Exploring the Effects of Interest Rates on the Residential Property Market: A Case Study of Weltevredenpark Suburb in Johannesburg

Japhta O. Maboko, Partson Paradza, Benita G. Zulch and Joseph A. Yacim

AfRES from African Real Estate Society (AfRES)

Abstract: Interest rates have a direct effect on the performance of the real estate sector. This study aims to investigate the impact of interest rates on the residential real estate market in Weltevredenpark, Johannesburg (South Africa), focusing on home loans. This study delves into the effects of interest rates on the residential property market in Weltevredenpark, Johannesburg, providing valuable insights for real estate investors, agents, risk avoidance, local real estate market dynamics, and policymakers. The study employed the qualitative method and utilised semi- structured interviews to collect data. The study reveals that interest rates play a crucial role in determining the performance of the residential real estate market. This means interest rates affect real estate properties' affordability, demand, and supply. We recommend conducting more research to identify the specific issues associated with the impact of interest rates on all property classes. Real estate agents specialising in the Weltevredenpark suburb market provided the data. The main limitation of this exploratory study is that it was based on a small sample of real estate agents in Weltevredenpark.

Keywords: Interest rates; Johannesburg; Property Market; Residential; Weltevredenpark (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2024-01-01
New Economics Papers: this item is included in nep-ure
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