 Investing, buying or selling property. Now, more than ever, information is power, and timing is everything. And it all starts with the numbers, how many, who, why and what for. By knowing where value lies and how to access it, we can turn more purchases into investments. Because that's where, how and why Lightstone's valuation reports add value. It can happen so fast or a little too late. Timing is everything. When nowhere is this as true as in the residential property market, we are living in the strangest of times. COVID-19 has ravaged economies around the world and is taking its toll in South Africa. And so it's more important than ever to know your numbers before buying, selling or investing. Finance Minister Tito Humbuveni expects our economy to contract by just over 7% its largest shrinkage in nearly 90 years. As it happens, the Great Recession of 2008-2009 brought about the last pre-COVID-19 dip in the South African property market. That recession in South Africa lasted nine months, although its impact on the property market filtered through in 2010 when we recorded the lowest number of transfers since 2001. Still of course, the COVID-19 induced recession. Generally, recessions tend to reduce buying power as unemployment rises and consumers become more cautious about spending money. Property prices also tend to correct downwards and while this is bad news for those who might have over-invested and who need to sell, it's definitely good news for those looking to enter the property market or purchase larger properties or second homes. While the recovery in volumes was relatively modest and has not yet reached the pre-2008 numbers, the total investment in residential properties rose from around $140 billion in 2010 to above $240 billion in 2014 and was edging towards $250 billion when COVID-19 hit. The data in the third quarter of this year shows an improvement on the second quarter. Perhaps more importantly, we may already be seeing the first signs of the post-COVID-19 realignment of choice of place to live. More and more families seem to be looking to swap the hustle of the big city living for the coast where nature, family and lifestyle come first, especially if working from home is now an option. Estate agents are reporting better than expected interest in popular coastal areas such as the northern KZN and the southern Cape Coast. And this mirrors a trend in other countries where those who no longer need to be in the cities are opting for safer, more relaxing nostiles in smaller towns or villages. Those who are relocating are creating opportunities in the cities for existing homeowners to buy up and first-time homeowners to enter the market. Time will tell whether what we are seeing now turns into a real trend. Mid-value houses dominated residential purchases in 2019, followed by high value and then low value. This is consistent with previous years. In fact, it was as far back as 2011 when low-value home sales outstripped high value sales. Overall, though, house purchases have been declining for the last few years and this will definitely be the case this year. Unsurprisingly, it's the 24 to 40 age group which buys most homes, followed by the 40 to 49 and 49 to 64 age groups. This trend has been consistent over the last 10 years and is unlikely to change. Rehold remains the most popular property type, followed by sectional title and estate living. The gap between the types has remained fairly static over the last 10 years. So, where are people buying? We've fixed up on a few indicators to give you a flavour. The top 10 suburbs with the highest number of first-time buyers. The top 10 suburbs in the mid- and high-value ranges. Top 10 high-growth suburbs in the country over the last 12 months. Let's have a look at second properties. And interestingly, mid-value homes dominated this category prior to the 2008-2009 recession. But since then, it's high value homes which lead the category. This graph looks at the categories in a different way and shows the relative rise of the luxury category to join second with mid-value properties in 2020. Along with the consistency of the super-luxury category, the growth of the luxury category in 2020 suggests that the wealthy are relatively unscathed by the current recession. And that it is the mid-value category that is, relatively speaking, most affected in the second home category. While freeholds' second property purchases have been more or less constant, around 54% to 57% from 2010 to 2019, estate sales have notched upwards from 17% in 2010 to 21% in 2019. Conversely, sectional title sales have dropped sharply from a high of 27% in 2013 and 2014 to 21% in 2019. Both estates and sectional title living tend to offer greater security than freeholds. But estates typically offer the benefits that come with freehold home ownership but with security benefits typically associated with sectional title. By far, the majority of second properties are in fact bought in the same province as the owner's primary residence. Those in the western cape appear to have a real affinity with the province as 91% owned second homes within provincial borders, followed by the eastern cape at 87% and Hardsang at 85%. Besides an affinity for the province, it could also speak to people investing in property for rental generation reasons, as being in the same province makes it much easier to manage. People are buying second properties at a relatively young age and in the figures have been more or less constant since 2010. The leading group at between 51% and 56% is the aged 24 to 40 age group. Next is the 40 to 49 age group with the 49 to 64 age group declining from 20% in 2016 to just 15% in 2020. Our data helps all those in residential housing to make better decisions. Looking at our prediction of valuation versus purchase price shows how close in terms of a percentage the milestone valuation was to the purchase price at the time of purchase, irrespective of whether the valuation was over or under. In 2019, 73% of the residential properties purchased milestone predicted within 85% to 100% of the actual purchase price. And we are at 70% in the unprolictible market of 2020. So you can be confident that we are not over or under predicting on the value. Using our milestone valuation reports will give you access to information like size of the stand, even the ability to measure the area under roof. You have access to essential information like previous sales prices, how many times the property has been sold and who has owned it before. Insurance related information like previous crime and fire incidents are also available through Lightstone's property reports. You can access information about the area like other property sales that have taken place in the vicinity, the age of owners, the period of ownership and amenities in the area like hospitals and schools. All Lightstone predicted valuations include confidence scores and gives you a view of municipal valuations. So whether you are buying, selling, investing or working in real estate, Lightstone information, valuations and markets intelligence will help you make the right decision for what will probably be one of your most important decisions.