Positive market sentiment after elections

A survey of Dormehl Property Group SA franchisees shows very positive market sentiments following the peaceful general elections and inauguration of President Jacob Zuma, says Kevin Proctor, principal of the Table View franchise.

"There has definitely been an increase in inquiries on our website and after more than a year of slowed market activity, most sellers have adjusted their expectations to more realistic prices and many of them are still prepared to negotiate. This really is progress as properties are now selling and not just ending up as stale, overpriced stock," says Proctor.

Dormehl Property Group's KwaZulu-Natal principals were similarly upbeat. Thelma Marx, the franchisee servicing Durban's Morningside, says there has been a growing number of visitors through Sunday showhouses.

More and more people are putting pen to paper, and buying property after having already got substantial deposits together as required by the banks.

Tony Denyschene, joint principal of the Umhlanga Rocks franchise, says there is a very positive atmosphere in the area with the Lions Rugby Tour, the Confederations Cup and the 2010 World Cup which will create worldwide exposure for South Africa and bodes well for the future property market.

Gauteng's Kempton Park franchise principal Stefan Beetge reports an increased number of inquiries from ex-patriates from central Africa, the UK and Europe who have been earning dollar-based incomes and want to return to live in Gauteng. Most of these inquiries are for houses priced at about R1.3 million.

Adina Harmse and Pamela Smit, joint principals for Dormehl Property Group's Rustenburg North West Province office, say a combination of the peaceful elections plus the lower interest rate and the considerable improvement in the rand/dollar exchange rate since the end of last year have all resulted in more and more buyers being drawn back into the market. "We also foresee a very bright future for South African property with the country featuring on the world's stage by hosting prestigious international sporting events," says Smit.

Sunday Argus

Posted at 07:59PM Jun 07, 2009 by Editor in Market  |