South Africa’s property is yet again to grow this year to 7.2% compared to 2014’s rate of 6.72%, investors have predicted.
A South African based property specialized risk management firm Lightstone Property, through their analytics manager Paul-Roux de Kock, has said lower- to middle-segment property market prices grew owing to increased demand in formal housing.
According to Paul-Roux de Kock this is an estimation price growth of 7.2% – though more realistic growth may hit at 5.8% in 2015.
Still, the property market will need to counter the effects of insecurity and labor unrest, among others, as these will discourage low- and mid-value market buyers’ purchasing power and risk appetite.
He has also said that the property market will finally be in good shape in the long-run if the country succeeds to grow large numbers of people into a financial position to afford formal housing, as well as developing a wealth-building group to drive the higher-value markets.”
He added that the price value growth in the year 2014 was the highest after the last mortgage crisis in 2008.
The formal housing in South Africa and Africa as a whole has showed a constant growth therefore drawing attention from investors to the industry. He has stated that luxury estate property market price growth will be determined by their aesthetic appeal and other local factors such as their accessibility to major business centres and schools, road access and security.
His prediction is that growing demand in the lower-value markets there would be a longer term with positive impact on the luxury lifestyle.
There is an estimation of about 318000 residential properties which are insecure and much more have gated communities with a value of US$250m per property. Gauteng has recently reported a surge for luxury property according to Pam Golding Properties group chief executive, Dr Andrew Golding.