World Cup not a boost to home prices

Business Day - Home Front - - HOMEFRONT -

CAU­TIOUS OUT­LOOK South Africans are cau­tious about the im­pact of the 2010 FIFA World Cup on prop­erty prices with more than 80% of re­spon­dents to a Prop­er­tyGe­nie poll, hosted on be­half of ooba, say­ing they do not ex­pect an in­crease in prices as a re­sult of the soc­cer tour­na­ment.

Of the re­spon­dents, 44,6% said they do not ex­pect the World Cup to have any im­pact on res­i­den­tial prop­erty prices, 36,7% said they ex­pect prices to fall af­ter the tour­na­ment while 18,7% said they will rise.

Ac­cord­ing to Saul Gef­fen, CEO of ooba, while con­sumers are prob­a­bly right not to ex­pect an im­me­di­ate ef­fect on prop­erty prices as a re­sult of the World Cup, in the medium term it is likely to have a pos­i­tive im­pact. Gef­fen says the mas­sive in­fra­struc­ture drive by the govern­ment to im­prove the coun­try’s roads, pub­lic fa­cil­i­ties, trans­port net­works and air­ports for the World Cup should con­trib­ute to­wards higher prop­erty val­ues in sur­round­ing ar­eas. He says these im­prove­ments were nec­es­sary in any case but the event has fa­cil­i­tated these up­grades tak­ing place in a frac­tion of the time they might have taken oth­er­wise.

He says re­cent prop­erty in­di­ca­tors have shown the hous­ing mar­ket is well into pos­i­tive price growth.

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