Cape – although it is

Weekend Argus (Saturday Edition) - - PROPERTY -

that this can be as­cribed to ‘sem­i­gra­tion’ from up-coun­try. Con­fir­ma­tion of this hy­poth­e­sis can be seen in the traf­fic in Cape Town, which has be­come worse than traf­fic in Joburg.”

Apart from Cape Town, Rode ex­pects house prices to grow at less than the in­fla­tion rate for many years, which will make a house fi­nanced by a high mort­gage bond a poor in­vest­ment.

Ex­plain­ing the rea­sons for pes­simism re­gard­ing the growth in house prices, he ex­plains that, firstly, house prices are still “very high” in real terms and have lots of po­ten­tial to grad­u­ally de­cline in real terms, and, se­condly, that South Africa’s econ­omy is “now on a low growth path”.

“This means the cur­rent re­ces­sion­ary con­di­tions are not a nor­mal cycli­cal affair with a sharp re­cov­ery there­after.

“Rather, it should be seen as a struc­tural malaise which will

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