Agent predicts 8% growth in Cape
THE LATEST Absa property review shows that house prices declined only marginally in 2009 after serious drops in 2008, says Graham Leslie, MD of Greeff Properties.
“Since May they have, in fact, been rising in nominal ter ms. Although, taking into account the effect of inflation, in real terms declines continued until October although at a slower pace than in 2008,” he says.
“Absa’s December report shows that middle-segment house prices in November r o s e ye a r-o n-ye a r by 4,7 percent, an average sale price of R1 006 300. Large homes increased by 3.5 percent to R1 419 700.
“It becomes clear from the report that larger homes lifted the average figures significantly, and all homes, in fact, moved into a year-on-year growth phase in the last lengthy period in which homes steadily lost value has now apparently ended.”
He says the Absa report predicts that a 5 percent overall growth rate on residential property can be expected in 2010.
However, he says even though Cape houses are coming off a higher base, Greeff Properties estimate that an 8 percent growth rate in Cape property values will be achieved this year.
“This should encourage property watchers to buy now. If they do, we believe they will be catching the market on an upswing,” says Leslie.