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13 Feb 2012PROPERTY: Mindset Change Needed in SA Luxury Homes Market
Recent Gauteng Business News
The company is the exclusive affiliate in Gauteng of Christieâs International Real Estate â the global luxury property arm of the worldâs largest and oldest fine art auction house.
Understanding the State of Mind Towards the SA Luxury Homes Market
âSentiment â not price, interest rates, or mortgage finance issues â is the biggest driver of the luxury homes sector,â says Ennik.
âAnd, as long as attention remains focused on the economic problems of western countries in the Northern Hemisphere, and the fear of collateral damage here in SA, a laager mentality will continue to hold back the market,â he adds.
âBut it is closer to home, right here in Africa, that some of the most promising sentiment-building indicators for our property market are appearing.
âA global poll of institutional investors, conducted by Invest AD and The Economist Intelligence Unit, has shown that Africaâs frontier markets offer the best overall prospects for investment growth over the next decade.â
A Possible Boost for SA Luxury Homes Market
Furthermore, the latest African Markets Revealed report by Standard Bank has indicated that African economies are set to remain resilient, while the International Monetary Fundâs growth forecast for Africa is 5,2%, says Ennik.
That is why South Africaâs incisive message to the recent World Economic Forum in Switzerland was âAfrica is the next great investment frontier, and South Africa is its gatewayâ, says Ennik..
âMeanwhile, we are seeing an uptick in foreign interest in the Johannesburg market. It is being generated predominantly by executives who are continually mobile between London and European capitals, South Africa, and other countries in sub-Saharan Africa.
âThe fact is that the wealthy, internationally, are spending again on luxury property and fine art. With a positive mindset, South Africa could be part of that process and this could really boost the SA luxury homes market,â Ennik concludes.
Business News Sector Tags: Property|
