World Cup not a boost to home prices
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.