Insights from the South African Property Transfer Guide (SAPTG) research team reveals changing trends in property buying that property professionals and investors should consider when formulating their respective marketing and buying strategies.
Finally, some (cautionary) good news
Conceding that the property market has, in many respects, suffered the brunt of the financial crisis, Deppisch concludes on an upbeat note. “The significant decline in insolvencies growth, decreasing debt-to-income-ratio, expansion in the retail sector, strong public-sector spending, falling inflation, low interest rates boosted by the 2010 positive sentiment will generate in property buyers, indicates a bottoming out in the current cycle.”
However, he maintains: “While we are not out of the woods yet, given reduced tax revenue, job losses and volatile commodity prices adding to a list of ongoing risks, it does mean that we can anticipate that the situation won’t deteriorate any further. Buyers remain skittish and it may take 6 months or more for the impact of lower interest rates to filter through to the real-estate market in general. Indeed we expect the cyclical movement to a seller’s market to begin in the first quarter of 2010. Meanwhile cash buyers will continue to benefit from lower property prices as many sellers still drown in debt. Prudent management of personal finance has never been more necessary given the ongoing risks we face in this unfolding drama we call the South African economy!”
Click here to read Part One on Property Buying: Changing Trends
Property Buying: Changing Trends - Part Three
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