Monday Mar 30, 2009
Property sales pick up in rural areas
The RealNet property group is reporting sharply increased property sales in its non-metro franchises.
These offices are reporting exceptional sales in stark contrast to the end of last year, when several of our non-metro outlets had few, if any, sales for consecutive months, says Hennie Combrinck, area manager of the groups non-metro region, which includes centres such as Nelspruit, Thabazimbi, Polokwane, Tzaneen and Witbank.
One example is Tzaneen, says Combrinck. The market was very flat in the last four months of last year and the office recorded no sales. But by the end of January, it had facilitated six successful transactions, with another two under negotiation.
Other non-metro offices in the RealNet stable that have reported an upsurge in sales include Rustenburg and Brits in North West and Witbank and Nelspruit in Mpumalanga. Nelspruit has reported a marked increase in the local residential as well as commercial market.
Combrinck adds that increased buyer activity is also reflected in a sharp increase in inter-franchise buyer referrals. On top of that, the ratio of referrals to successful transactions has climbed from 3:7 at the end of last year to 4:6, he says.
It is still too early to predict whether this trend will be sustained, says Combrinck, and at this stage it is only possible to speculate about the reason for the sudden spike in sales.
One possibility is that investors now deem the market to be at its lowest turning point, which creates good investment opportunities, especially in the light of a lower interest rate cycle. This view is borne out by the fact that some recent buyers in our non-metro areas have bought multiple properties.
A second possible explanation is that the lower interest rate cycle is spurring renewed activity among buyers who had previously adopted a wait-and-see attitude. The spike would then represent a sudden release of pent-up demand that is likely to be sustained by further rate decreases that will make property even more affordable.
Issued by RealNet
For further information call
Hennie Combrinck
012 460 4606 or visit
www.realnet.co.za
Posted at 12:39PM Mar 30, 2009 by Editor in Market | Comments[1]
Posted by Simphiwe on March 30, 2009 at 10:58 PM SAST Report this Comment