select
|

TIME TO SEIZE THE MOMENT, SAYS DR ANDREW GOLDING

Off the back of the hugely successful Soccer World Cup, never before has South African been presented with such an ideal opportunity to promote the country to foreigners as a prime investment destination, said Dr Andrew Golding, CE of the Pam Golding Property group, speaking at the IPD/SAPOA Property Investment Conference held in Cape Town yesterday (29 July 2010). Dr Golding’s address was on the changing dynamics in the residential property market.

“We need to seize the moment, because if ever there was a time to present our credentials to the international community of investors, it is in the afterglow of such a resoundingly successful World Cup. For the most part, these foreigners will see South Africa as an opportunity and in return, will bring much-needed foreign direct investment and create jobs - potentially on a major scale - in a process which in itself may develop a momentum of its own and become a virtual self-fulfilling prophecy of foreign direct investment, job creation and ultimately GDP growth,” he said.

From a residential perspective, Dr Golding said while the market has improved - in terms of number of transactions - by about 30 percent off the worst levels experienced during the recession, there is very little in the way of real house price appreciation and consumer demand remains dampened by restricted access to finance, which is also hampering developers’ appetite for risk.

However, he said that rather than take the view that the residential property market as an asset class is one to be avoided right now, allowing time to pass for the market to correct itself, it is at times such as these when astute investors capitalise on the situation by making considered acquisitions and achieving significant returns. He said the leisure market, which will clearly take longer than the primary market to recover, was a case in point where prime coastal property for sale currently presents a desirable investment opportunity.

Amid recent debates about the merits of residential property funds, Dr Golding said the current circumstances are favourable for investment in such funds as interest rates are at the low end of their cycle, inventory stock levels – both in private and institutional hands – are high and as a result the propensity for keen purchasing is good, potentially locking in early capital growth. The market is probably nearer the end of the down cycle than the beginning and in fact may have already begun to turn, while rental yields are likely to increase off their current low levels and capital growth of a reasonable nature over the next five to seven years is a real possibility.

“Within the primary residential market, South Africa’s recent infrastructure upgrades have provided new transport nodes and created new residential development opportunities which probably present some of the best options currently available. With ever-increasing traffic congestion and a growing worldwide trend around the convenience of work, living and leisure within the same precinct, these transport nodes must be on the right side of the supply and demand continuum. With the new Gautrain station precincts clear examples of these, it is anticipated that this trend will only increase as these nodes become fully bedded down and the true value and convenience of these transport hubs becomes fully appreciated.

“One interesting niche in the market that is potentially worth looking at, both from an individual perspective as well as collectively is the so-called ‘uber-prime’ market – the top end of the South African residential market which is in the region of in excess of R20 million per opportunity. While trading is naturally thin, the best homes in Cape Town, Johannesburg and Durban, ie the best of the best, are now beginning to compete both in terms of price and perception with homes of a similar nature in St Tropez, London, Paris and New York. These properties are competing with each other and in world terms are still under-priced and may represent buying opportunities for savvy investors,” said Dr Golding.

Issued by Gaye de Villiers


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 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.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
        
    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