Cape prices fall due to constraints
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- Cape prices fall due to constraints
03 Feb 2009
The current low prices in the Cape property market have often come about as a result of cash-strapped people deciding that they must for the next few years do without a holiday home or that they should defer their retirement/opting out plans.
So says Tony Clarke, managing director of Rawson Properties, who adds that "obviously all coastal properties have been affected but those in truly rural areas like Betty's Bay, Kleinmond, Gansbaai, Port Owen and Saldanha have seen prices drop more radically than the better established areas such as Hermanus".
Clarke said that anyone buying in the small coastal areas should make absolutely certain that he can find a tenant. On that basis, he said, such an investment four to eight years from now could turn out to be very profitable.
"I believe that the potential of our small coastal areas is still to be realised. Although it could take five years for the major Western economies to recover fully and obviously this will effect our property market, the local property industry is clawing its way back month-by-month and by mid-2010 values should reach 2001/2004 levels in real terms."
Clarke said that SA has shown itself to be capable of avoiding the full scale recession now ruining confidence in the USA, UK and Europe.
"This is good news for property investors because even a moderate, smallish growth rate is always reflected in the property sector."
For more information contact Tony Clarke on 021 658 7100 or send an email.
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