WHERE THE RICH LIVE
Durban’s property rankings dropped into the bottom 10 worldwide with a negative growth of -5.1%, which Pam Golding CEO Andrew Golding says is an unfair generalisation. “I think that Durban, like many of the cities on that list, has many pockets that are great performers, so to throw a blanket over a whole city isn’t really a great indicator. But, in fairness, the Western Cape has been outperforming everywhere else, and in 2016, Joburg and Durban have certainly been lagging behind,” he says.
“The reason is that Cape Town sees an above-normal migration of people owing to the perception of the lifestyle it offers. Another important factor is that it benefits the most from foreigners who invest there.”
But all this might change after the recent economic downgrades. “Our experience of what’s happening in the market was [before the] downgrade. We haven’t been able to assess the market yet, because March is a good month for the residential property industry and April is a slower month because of the holidays. By the end of May, we’ll have a much better picture,” Golding says.
Golding says property investors now need to make wise choices. “Smaller factors such as the street that you’re on could make a significant difference in the value of your investment. There is an uptake in sectional-title properties and a trend towards inner-city living. Security demands are driving a section of the market significantly and first-time owners are getting older, which is drastically affecting the rental market.”
This six-bedroom house in Clifton, Cape Town, is on the market for R145 million, coming with its own cinema and spa