select
|

Property market indicators turn positive

Many different indicators are pointing upwards for the property market, suggesting that the worst may really be over.

 

“It’s not quite time to break out the champagne yet, but key aspects of the market are now looking good and we are hopeful of recovery,” says Gerhard Kotzé, CEO of the ERA South Africa property group.

 

He refers firstly to Absa’s recent comments that although house prices are expected to decline further for the rest of 2009 and possibly into early 2010, the pace of the decline will slow.

 

“And research company Lightstone goes even further, noting that its National Repeat Sales House price indicator is still slightly negative year-on-year, but has nevertheless shown a month-on-month increase since January this year.

According to Lightstone annual house price inflation is now effectively moving sideways.”

 

Kotzé says there is admittedly still a risk that various extraneous factors could upset the proverbial applecart, sending the market lower once again.

 

“We are somewhat at the mercy of global as well as regional economic and other influences and there is still an over-supply of unsold property stock due to slack demand and repossessions. Consumer confidence is also still relatively low according to the latest reports. 

 

“However, the world economy does seem to be coming steadily out of recession and although SA is lagging in this respect by about three to six months, we have managed to weather the general storm far better than most countries, so the dip in our property market has not been as severe as elsewhere.”

 

He cautions, however, that as things start to look up, care needs to be taken to avoid an over-reaction that sends property prices soaring once more in a short space of time, risking another painful downward adjustment and certainly attracting inflationary speculation and higher interest rates again.

 

 

Issued by ERA South Africa



  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Nov 2017
      Property valued at approximately R1 billion is on High Street Auctions’ sales floor during the month of November, including the much-anticipated sale of the Tshwane Mayoral Residence and the land occupied by one of South Africa’s oldest operating gold mines.
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK