Dear {{contact.first_name}}
2026 has burst out of the blocks and is going for gold!
Nowhere more so than the physical gold market that has been on a historic run the last 12 months.
In January 2025, gold was trading around $2600 per ounce.
Fast forward a year and the gold price more than doubled to a historic high of $5608!
Gold has always been viewed as the most conservative investment available and the price viewed as an indicator of the level of uncertainty and risk in the world economy.
With a crazy political and geopolitical 2025, the gold price is showing just how uncertain investors feel about the economic future of the world.
At the same time our South African stock market, the JSE, has been on a historic bull run with the market up over 35% year on year. This has been driven primarily by mining companies that saw their share prices more than double for the most part, some up to over 200% in a single year.
Although the stock markets are booming, the general economy languishes for the most part resulting in a flat economy.
Where does this leave the property market and its outlook for the year?
According to John Loos he feels the property market, and particularly so in the Western Cape, is entering a new golden era.
While South Africa has been in the news for all the wrong reasons last year, the fundamentals have been quietly improving in the background.
The market in general will benefit greatly from lower interest rates, a stronger rand, leading to South Africa being removed from the financial grey list, experiencing a lower inflation rate and improved buyer / consumer sentiment.
These changes combine well with good governance, excellent forward planning, consistent investment in infrastructure and a steady reduction in the crime rate which has been the case in the Western Cape.
Market runs happen when trust is high because of consistency in results and delivery in an area or sector creating a stable market.
Combine that with a general improvement in the factors that drive demand then suddenly demand starts to outstrip supply and prices begin to rise.
First slowly and then faster as supply continues to lag behind demand and the returns and growth start attracting more attention and more buyers who don't want to miss out.
Is this the start of a new Golden Era in property?
We think it is for the Western Cape and hopefully other parts of South Africa that show consistent and reliable service delivery, responsible governance and improvements in safety and security.
Keep your eyes on the municipal elections to identify other possible hotspots for the years ahead.
Yours in Property
Jacques Grove
Principal and Dreamer
