THE OUTLOOK FOR SA RESIDENTIAL PROPERTY PROVIDED INTEREST RATES DO NOT RISE

A recovery could occur by December, says Steward.

 Lanice Steward, MD of the Claremont based agency, Anne Porter Knight Frank, has already said in a public release that there is surprising resilience in the SA residential property market, that sellers are showing a greater sense of realism and are coming round to accepting the 15 to 20% price falls of the last year.

 Asked recently when, if ever, an upturn in home sales could become evident, Steward said that, despite the economic fallout worldwide (“the worst since 1929”) and Mboweni’s warning that a credit crunch now seems inevitable, property marketers are still hopeful that there will be no further interest rate rises.

 “If that is the case,” she said, “the market could turn upwards before the end of this year.  Although the freefall in the world’s stock markets is serious, SA is to an extent protected from it because our credit restrictions, although imposed late, have been effective and, due to the foreign exchange controls (so often seen as a handicap), our banks were not involved by and large in sub-prime lending.  Furthermore, our state finance portfolio was farseeing enough to build up reserves in the boom years, making it possible now to tackle 15 years worth of infrastructural development in five. 

 The impact of the 2010 soccer event, although overplayed in some quarters, will focus interest on SA and will channel a small percentage of (some say 2%) of international property investment in our direction. 

 “The estimated 350 000 plus visitors at this time is just what we need,” said Steward.  “We have already experienced several new enquiries from the USA, a country in which we have had traditionally few clients.”

For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.