With the 2010 World Cup flowing smoothly along and visitors to our shores singing praises of a beautiful and friendly nation the trend in the property market signals positive growth albeit at a steady pace. Although the demand for property remains weak there is a shift towards positive territory. There are reports of an increase in property sales in the past two months. Statistics indicate that the market is bottoming out. It faces a long, steady recovery. Industry projections indicate a 6-8% growth this year. Together with stable interest rates means more buyers willing to put pen to paper. There are certain risk areas that will still impact on recovery and this includes the crisis at Eskom as well as affordability levels since many are still reeling from issues of affordability and lending criteria as determined by the financial institutions.
Technology is advancing rapidly and there is no exception in the real estate industry. Buyers and investors especially are geared to access data and information at the click of a computer button. This places them in an advantageous position. They are able to access the latest trends and market related prices making the market highly competitive. Sellers overpricing their properties and demanding hugely inflated prices will experience much resistance and loss of sales as buyers will seek other options and buy what will appeal to them at a more realistic price.
The World Cup is unlikely to boost buyers from abroad as many of the visitors have just experienced a recession in their own countries. They will tread cautiously in terms of buying property in South Africa although they are enchanted with the beauty of this country with its moderate climate and the warmth of its people. However, the unity of our nation has had a dramatic boost in race relations and this may boost property sales locally.
It is still a buyer’s market and property investors have plenty of choices to make an informed decision. Sellers that are deeply indebted in loan repayments may be forced to sell and cut their losses if they want to see another day. By holding on only exacerbates the unpleasant situation and leads to further stress and trauma. Whether you are buying or selling make sure that you equip yourself with the latest up to date information.
For further information contact Ebrahim at Wendy Machanik Properties 072 322 1779 or 011 852 0944. Email: Ebrahim@wmp.co.za
21 June 2010