Outlook gloomy for property
THE full effect of SA’s flagging economy has yet to fully filter through to the property market.
That’s the news from PVA’s Jaco du Toit who explains that currently, the property market is fairly well balanced but that some weakening is expected.
“As things stand, the property market is still fairly healthy, but is gradually weakening in line with a broader economic slowdown, which has been four years in the making,” Du Toit said.
“People’s salaries just aren’t keeping up anymore, which impacts purchasing appetite and property price growth.
“To put things into perspective, house price growth has already dropped from 8% to 6% and will probably decrease further in the near future.”
As for whether or not the weak rand has buoyed foreign buyer
“People’s salaries just aren’t keeping up any more
interest, Du Toit said that there hasn’t really been an increase in activity on this front.
He says this could be attributed to the fact that the global economy is not performing well, which could be holding back investors.
Du Toit added there are pockets and areas which always do well no matter the economic climate.
Western Cape is a case in point.
Properties in the province are currently performing fairly well, which industry observers attribute to “semi-gration”, a phenomenon whereby residents (mostly from Johannesburg) are moving to Western Cape but commute regularly between the two areas for work.
The fact that Western Cape is perceived to be well run and offers an enviable lifestyle is also boosting the local property market.
As for the auction property market, Du Toit said that things are continuing apace.
PVA continues to be instructed with quality properties across the spectrum and a number of really notable properties are in the pipeline.
He added that buyers and bidders always make a plan to purchase well-priced properties in good locations that offer great value for money.