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Monday Sep 10, 2018

Looking back on three decades in SA’s property market

Estate agency boss, Seeff’s Samuel Seeff, recounts the highs and lows of 30 years in property:

1983-1987: The interest rate was in the 20%-25% range and you could not sell anything in Camps Bay. Just five years ago, you could still buy in Camps Bay for R6 million. Now the entry-level price is R10m.

1992/3: South Africa was under major threat of a revolution and the market was practically dead. For most of the 1990s the interest rate was 18%-20%, peaking at 25.5% in 1998.

1994: First democratic elections and a new era for South Africa, but the interest rate was still at 16.25% and remained high throughout, peaking in 1998 , despite 2.5%-3.5% economic growth.

1998: A slump in economic growth to just 0.5%, picking up to 2.5% in 1999 before the economy started its serious uptick towards the 2000-2007 boom phase. Prior to 2002, South Africans weren’t buying, but foreigners were, seeing the value of property in Cape Town.

2000-2007: Economic boom with growth rates in the 4%- 5.5% range, yet interest rate was still in the 13%-15% range, only coming down to 10.5% (the current level) in 2005.

Read more on Property360...

Bonnie Fourie

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