Property market stabilising
2007-02-22
WELCOMING the Reserve Bank’s decision to hold the repo rate steady, Dr Andrew Golding, CE of the Pam Golding property group, said the recent spate of interest rate hikes was still taking effect, given that there is a lag before they impact on the property market.
He said it is hoped that the interest rate upward spiral is at an end for the foreseeable future.
“The residential property market has stabilised to a more sustainable situation where we are experiencing steady growth, with values of properties continuing to rise, albeit at a more conservative pace.
“Generally we find the market is seeing low double-digit growth in property values with exceptions in some areas where there is a particularly high demand, or those coming off a very low base.
“While the top end of the market remains active, the segment of the market which is really outpacing the rest at present is the middle market, fuelled by the growth of the emerging black middle class with its growing spending power.
“New entrants are coming into the market at an increasing pace, as more and more members of this group opt to invest in their own homes, whether it be within the townships or putting down new roots in the suburbs,” said Dr Golding.
“As a group, Pam Golding Properties has had a busy start to 2007 - with December and January traditionally very busy trading periods, particularly for coastal cities and towns. At present, the company is over 30 percent ahead of residential sales for the current financial year over the previous year.
“With the market having consolidated, we advise home buyers and sellers to do their homework when pricing properties.
“In other words, if you are selling ensure that you put your property on the market at the right price, and if buying - research the marketplace in order to compare prices of homes in the relevant area/s, obtain sound advice from an experienced and professional real estate agency and ensure you do not over-extend yourself in terms of credit.
“We have a robust economy with inflation held in check. Given the current economic and other fundamentals, the outlook for the economy and for real estate in South Africa remains upbeat.”
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