PROPERTY: Time to Get Excited About Property
Recent Gauteng Business News
In many ways, 2010 is going to be an exciting year for real estate in SA. In the first place, says Berry Everitt, CEO of the Chas Everitt International property group, it is exciting that homebuyers and investors seem to be regaining their confidence by the day and that the oversupply of stock that has plagued the market for many months is rapidly being absorbed, which will underpin a recovery in prices.
“As the result of the tight rein that the banks are still keeping on credit extension, we do not expect to see the massive gains that were common during the 2003 to 2007 boom, but we do foresee that an improving economy and spreading empowerment will ensure that the demand for homeownership keeps expanding, and that this will have a positive effect on property values going forward.
“We certainly expect price increases to exceed the rate of inflation in the coming year.”
Meanwhile, he says, the year is also set to see one of great and exciting changes for the real estate industry, and for its customers.
“The number of estate agents contracted by more than 50% during the economic downturn and despite improving sales, more are expected to leave the industry over the next two years with the approach of the deadline for obtaining the new agent qualifications required by law.
“The implication of this for real estate consumers is that they can increasingly expect highly professional service since only the top performing and best qualified agents will remain in the industry. And this will be further enhanced as the industry moves to address the new consumerism that has grown out of the recession and a renewed focus on ‘the things that really matter’ – the ethics and values of the organizations with which one does business."
The year will bring the excitement of the Football World Cup and the much-discussed positive effects it will undoubtedly have on the local property market.
“The most immediate benefit of the World Cup, of course, will be the injection of billions of rands of soccer tourist money into the economy this winter. We are looking longer term, though, at the expected permanent increase in tourism as a result of the global exposure SA will receive during the tournament, because we believe that the job creation this will bring about is where the real and lasting benefits of the tournament will lie for our property market.”
Business News Sector Tags: Property|