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Just an observation and speaking to many in the last couple of weeks ...there seems to be a genreral concensus and a vibe from regular clients of mine (mainly Conveyancing Attorneys and Estate agent property proffesionals) all over Durban in particular..... "that the property market has slowed up to put it mildly" ....Is there any one in our forum out there (in the loop) that has got some anwsers as to what and why it's taking place?
The only thing that I know in Durban is that the words "Estate agent" & "property professionals" used together must be an oxymoron.
My guess on the issue would be the usual interest rate increase changes and uncertainty as to its future.
Oversupply in upper townhouse market. (La Lucia, Umhlanga, Ballito, Point)
There is also for some reason that I have not been able to establish a drop off in visitor rates to Durban during August September October every year. I would also imagine that this affects the current buying and selling patterns.
There is also the effects of the threats of placing low cost houses in the middle and upper class suburbs - thank our mayor and city manager for that.
Theres also the point of not alowing overseas investors into the market and frightening them off.
I have seen a huge increase generally on renovation work and additions being done in our area as a cheaper option to moving.
I would also guess that building your own place is still a much cheaper option than buying (although property and building costs seem to be climbing rapidly).
It seems to be latest excuse/reason/marketing ploy(fill your own words in here) to hold on or sell your property based on the 2010 happening. I dont go with this at all but it seems to be the buzz word.
Rand declining could create expectations of a 20/1 rate again so people holding on for that (Doubtful point but could be a factor sometime later in the year). Also Foreign investment point above negates this.
Some other thoughts that drifted in:-
Brain drain is higher than we think - houses given to their kids.
House auctions higher than usual sales methods These sales do not go through the estate agents listings.
Owners are in prison higher than we think and house is waiting for them.
Ok - run out of thoughts with that brain storming session. Need to top up.
Interest rates seems the logical cause to blame. However, I can't help wondering how much longer it could have gone on anyway given the growth in personal credit and affordability issues.
Interest rates seems the logical cause to blame. However, I can't help wondering how much longer it could have gone on anyway given the growth in personal credit and affordability issues.
I am not an expert on this at all, but it appears to me that the high end property market has slowed down but that the middle and lower end property continues to grow (even if it is slower).
My logic tells me that we have a huge black African middle class who need housing and that this market is far from saturated. Whilst the demand is there - the average joe home/flat/area will continue to grow??!
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