Interest rate reduction would have provided further confidence boost

“The housing market continues to experience an over-supply of stock and while bank lending approvals have improved, access to credit remains a key factor which is impacting on concluded transactions. However, from the outset of 2012 there is a sense of increased positive sentiment evident in the marketplace, and Pam Golding Properties reports that group sales in December (2011), traditionally a quieter month than most, saw an upturn in sales turnover of 19 percent over December 2010,” says Dr Golding.

“PGP sales activity has increased from a national perspective, particularly in the metropolitan areas where there is good infrastructure and access to quality educational facilities and which is within easy reach of the workplace. There is also a sense that those buyers who have been waiting on the sidelines for conditions to improve are becoming active, particularly in the middle to lower house price ranges. However, the uptake of the over-supply of stock currently available is hampered by some sellers who remain resistant to realistic, market-related pricing.  There remain, however, good buying opportunities which present sound investment potential, for those with finance and sufficient funds for a sizeable deposit, or a high cash component.

“With the global economic outlook still uncertain, it remains to be seen to what extent such macro-economic factors will impact on South Africa during the course of the year, and ultimately on our housing market. However, PGP remains optimistic in regard to the long-term benefits of investment in residential property in the country, which continues to compare favourably in regard to other forms of investment,” says Dr Golding.

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