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

Author

Listed:
  • Japhta O. Maboko
  • Partson Paradza
  • Benita G. Zulch
  • Joseph A. Yacim

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.

Suggested Citation

  • Japhta O. Maboko & Partson Paradza & Benita G. Zulch & Joseph A. Yacim, 2024. "Exploring the Effects of Interest Rates on the Residential Property Market: A Case Study of Weltevredenpark Suburb in Johannesburg," AfRES afres2024-017, African Real Estate Society (AfRES).
    • Handle: RePEc:afr:wpaper:afres2024-017
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Interest rates; Johannesburg; Property Market; Residential; Weltevredenpark;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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