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
Characters remaining

    Latest Property News
    • 24 Apr 2018
      The thing about the property ladder is that at some point in our lives we all have reason to want to climb a rung or two higher. Sometimes, it’s because we’ve outgrown our previous dream home, or because we want to be in a better neighbourhood that’s closer to work or to schools. Sometimes it’s because our circumstances have changed, and we’re taking care of elderly parents or relatives. Sometimes, it’s just because we want a property that reflects the financial status our hard work has won.
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
    • 19 Apr 2018
      The rental market is a cut-throat sector of the real estate market that waits for nobody. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, first-time renters need to be fully prepared before they even start the process of looking for a place to rent in order to avoid the disappointment of losing out on their ideal property.
    • 19 Apr 2018
      Choosing to buy your first home instead of continuing to rent is a big decision that will usually take some time to put into action, but the sooner you can save up a sizeable deposit, the closer you will be to reaching your goal.
    • 18 Apr 2018
      Selling your home is no small task and as you will quickly find out, there are a lot of misconceptions about the process. Gerhard van der Linde, Seeff's MD in Pretoria East lists the top 5 misconceptions when you are selling your home.
    • 18 Apr 2018
      The Cape Town municipality is now installing water-management devices at properties that have been non-compliant with the new level 5 water restrictions and there are talks of fines between R5,000 and R10,000 for households that use too much water.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us