Universally, property is a storage of wealth.

It hasn't been that in SA for the last 15 years. That will change now in 2024. Traditionally, property has always been a cornerstone of anyone's investment portfolio. But an investment demands a return. Since the financial crisis of 2008 residential property has performed very poorly, falling far short of inflation for 15 years.

Memories of how vital an asset class it is in any portfolio have faded. The old days of riding the three-year cycles cleverly (with astute gearing) have long gone. Millennials, now economically active in their 30s, have never experienced the benefits of good property investment.

Yet it will return to become that cornerstone of wealth again.

A pent-up tide

Johannesburg is sitting on a pent-up tide of would-be home buying - particularly among the millennials. And it is simply waiting to roll out. Granted, dinner table talk these days on residential property market has hardly been invigorating. It will take a little while for faith to be restored. But property is so undervalued that the turnaround is inevitable.

Once we all feel the market has turned we will have actually 'missed the boat' (bottom of the curve) by four to six months. This happens in every turnaround. Millennials who are poised to buy a home for the first time are seeking to be convinced that there is a likely return on the investment down the line.

Which hasn't been the case for far too long. A positive change in sentiment will fuel a turnaround. It is likely that a positive outcome will emerge from the election and the involvement of the private sector in state owned enterprises will contribute to a better year in 2024.

Millennials today account for about 50 per cent of home purchases in Johannesburg and they will be a key driving force when the market does, inevitably, strengthen its turnaround. And their faith in property as an essential part of their investment portfolio will return.