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What to expect from residential property in 2017

1ea1286612-3-resizeIn 2016 property sales volumes decreased by an average of around 15%, compared to 2015. This is the result of a slow economy, buyer uncertainty and affordability constraints. Will the tide turn in 2017 and what should buyers and sellers know before the rat race begins? We ask those at the helm of the industry

Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa

Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa.

Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa.

“Property price growth will slow again in most areas. However, there will be pockets of brilliance, such as Somerset West which is still providing a great return on investment. Other pockets of excellence, such as Lakeside, provide a lower entry level but will soon shoot up in value due to demand in Cape Town’s Southern Suburbs”

 

 

 

 

Dr Andrew Golding, CE of the Pam Golding Property group

Dr Andrew Golding, CE of the Pam Golding Property group.

Dr Andrew Golding, CE of the Pam Golding Property group.

“Economists and commentators in general are more positive about growth this year, while business confidence has improved, which in turn enhances overall sentiment which is a key driver of the residential property market. Much depends on the performance of the rand, but on balance the general expectation is that inflation will fall quite noticeably by the second half of 2017, hopefully with the Reserve Bank looking to cut interest rates during this latter part of the year. While the prospect of anticipated stronger US growth would support the South African economic growth rate, a stronger US dollar and increase in US interest rates may impact the rand, with implications for inflation and exerting pressure on our own interest rates”

 

Bruce Swain, MD of Leapfrog Property Group

bruce-swain

Bruce Swain, MD of Leapfrog Property Group

“Regardless of what the economy is doing people still need a place to live so demand in the major metros will continue, mostly, unabated – particularly in the R400,000 to R1,2m price range”

 

 

 

 

 

 

Samuel Seeff, chairman of the Seeff Property Group

Seeff chairman, Samuel Seeff.

Seeff chairman, Samuel Seeff.

“A key theme for the property market in 2017 will be smart pricing. We have seen the market contract in 2016, demand has dipped in line with the slower economy, more property listings are coming through and buyers now have more to choose from. As the market pendulum shifts towards buyers, the challenge will be on for serious sellers to realise that they are now competing with other properties and will need to set their asking price expectations at the right level”

 

 

david.steynberg@gmail.com

David A Steynberg, managing editor and director of HomeTimes, has more than 10 years of experience as both a journalist and editor, having headed up Business Day’s HomeFront supplement, SAPOA’s range of four printed titles, digimags Asset in Africa and the South African Planning Institute’s official title, Planning Africa, as well as B2B titles, Building Africa and Water, Sewage & Effluent magazines. He began his career at Farmer’s Weekly magazine before moving on to People Magazine where he was awarded two Excellence Awards for Best Real Life feature as well as Writer of the Year runner-up. He is also a past fellow of the International Women’s Media Foundation.

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