Agent pre­dicts 8% growth in Cape

Weekend Argus (Saturday Edition) - - PROPERTY -

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.

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