The last few days I saw a new side to business especially in the UK property markets. It has come to my attention that a lot of owners are upgrading their homes to the new so called “green standards” now as old as this topic may sound is there any value in making your South African home green?

When we look at our home market systems you will see that most good sized homes goes for round about R800000 to R1000000+ depending the aria and condition of the home. Now these are for the basic home. And I think the words “basic” with the amount of a “million plus” shows that the market is booming despite all the economic “problems”

Now what “if” the green factor hits South Africa? Will property value drop? Homes able to generate their own power and water purifying units are becoming a norm but what about insulation, “new age” materials and most important of all security... Personal security is a basic must but what is security? Is it security door or an alarm system or perhaps a housing-complex? Is your property in a “red zone” and what has that done for its value?

These are the new questions that will face the property market and right now it is not a promising picture. Most “large homes” are between 25 to 30 years of age depending on location and most new properties are rather small and are basically a 2 bedroom flat with a massif price tag?

My argument is: Are South Africans being pushed by the banking systems to go for smaller properties. If so what is the 10 to 15 year benefit if that property is to be sold. What possible modifications can you do to add value to a property that has no space to expand?

The point is: Is a 1 million rand property worth it if it is only a 2 bedroom flat with no possible way to expand and or upgrade? The answer is no it is not so why is property developers so focused on these kinds of developments...

What is your view on this?