select
|

South African residential property is still undervalued

Bill Rawson, Chairman of the Rawson Property Group, recently had some advice for those in search of a house, but determined not to pay higher than ‘true market value’ – however that is assessed.

“I have myself on several occasions paid high for a property, especially where I could see a real value and where the seller was obviously in a position to hold on for a high price, even if it meant he had to wait a year or two.  The good news, however, is that within two or three years (sometimes less) on most of these high priced properties the market did, in fact, catch up and the price paid then began to seem reasonable.  Furthermore, from there on the value of such properties has usually increased steadily because, having been carefully chosen, it does have certain merits which are widely recognised.”

“The second fact that should be borne in mind,” said Rawson, “is that despite much talk of the revival in property values (which by and large is true), South African home prices are in my view low, especially in relation to international market prices.”

Certain of the Cape Peninsula’s outlying precincts, said Rawson, (he mentioned Fish Hoek, Noordhoek, Kommetjie, Bloubergstrand and Durbanville), still offer excellent value for money.

“I believe that prices in these areas right now are set to rise by at least 10% per annum over the next five years.  With interest rates still at affordable levels, it makes no sense to delay a property purchase, even if you do have to go a little above what you consider to be its true market value.  In Cape Town, or for that matter certain Johannesburg outlying suburbs, I maintain prices are still exceptionally reasonable and although demand has picked up we are not yet in any way in a price bubble situation.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 20 Feb 2018
      Owning a home is a milestone that most South Africans aspire to. Becoming a homeowner is a step towards growing personal wealth and owning an asset that appreciates in value over time, provided of course that the correct principles are applied during the buying stage of the process, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Feb 2018
      The suburb of Greenstone in Johannesburg east came to be over the last two decades. “In the beginning, it was literally just a hill with not so much as a shopping centre,” says Michael Levy, Property Consultant at Jawitz Properties Bedfordview. Today it has plenty shopping facilities and is fully built, boasting high-density, upmarket housing and residential estates, though still has a few pockets poised for commercial development.
    • 20 Feb 2018
      A major shift in the ageing paradigm has precipitated an equally dramatic transformation in the retirement sector, with modern accommodation options worlds away from the conventional model.
    • 19 Feb 2018
      Possibly one of the biggest sources of contention between landlords and tenants surrounds the rental deposit. “Most tenants rely on getting their rental deposits back when moving, so that they can use it to pay a deposit on their new home. Having it withheld or even having large amounts deducted can lead to a lot of distress,” explains Bruce Swain, CEO of Leapfrog Property Group.
    • 19 Feb 2018
      Situated approximately halfway between Johannesburg and Pretoria, Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of the major business hubs in the country with major pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
    • 19 Feb 2018
      The PayProp Rental Index Annual Review of 2017 shows that the rental market suffered from much volatility during the year. It kicked off with rental growth spiking in January with weighted year-on-year growth (YoY) growth peaking at 8.3% before dropping to 6.34% in July, dipping down to less than 5% in November and then experiencing a slight uptick at 5.75% in December.
    • 19 Feb 2018
      While most homes in cluster complexes, estates and other gated communities come with at least one garage or carport, residents would often like additional permanent parking or storage areas for things like trailers, bikes, boats and caravans.
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
        
    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