WHERE THE RICH LIVE

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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.”

PHOTO: DOGON GROUP

This six-bed­room house in Clifton, Cape Town, is on the mar­ket for R145 mil­lion, coming with its own cinema and spa

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