Scene set for new growth in property
Economic and political factors bode well for house prices
● Steady house prices through the last half of 2017 and first quarter of 2018 may be just the tonic needed to settle the market and provide a springboard for future growth.
“Lower inflation, interest-rate cuts and a more investment friendly political dispensation bodes well for the industry in future and as a result we are expecting to see more investors returning to the safe haven that is property,” said Roy Lazarus of Park Village Auctions.
“We also foresee the industry gaining traction slowly before gaining momentum later in the year and in months to come.
“Experts predict the national GDP to grow between 0.7% and 1.5% and we believe this will give rise to growth of up to 5.5% on national house prices and even more in the top-performing segments. And, while the high- and mid-value ends of the market can expect growth of between 5% and 7.5% this year, smart investors may look towards the value-end where entrylevel houses are in higher demand than ever before.”
Even so, returns on property investment will remain moderate and Lazarus advises would-be investors to take time to research target properties, establish the area’s investment credentials and to buy at the right price. He adds that auctions usually provide the fairest value, with properties selling nearest to their true market value.
“In order to make the best decisions, buyers should watch the auction pages and pay daily visits to the Park Village Auctions website www.parkvillageauctions.co.za to identify real investment-grade properties. Depending on the location, bidders can either physically attend the auction or log into the live online facility.”
Even so, returns on investment will be moderate