22 Dec 2010
While the levels of optimism in the property market remained prior to the 2010 World Cup, these quickly declined after the post-match euphoria and returned to more sombre levels claims Rael Levitt of Auction Alliance.
In his review of the property market for the year, Levitt says that constrained bank funding, a drop in property trading and a fall in house prices contributed to the lack-lustre performance of the market.
Despite these factors, Auction Alliance ended the year 22% better than budget, selling properties and assets worth R5,2-billion and recorded some of the highest-value transactions ever bought at auction.
“Buyers with access to capital have been out in full force finding low-value deals and these speculators have been able to make some serious money this year,” he says.
“Throughout the year, distress levels continued among owners of vacant land, property developers with incomplete developments or golfing estates,” he says.
“It will take years for this market to reach stability, clear out the distressed inventory and start to show signs of positive growth once again,” Levitt says.
“We have seen banks, liquidators and legal entities selling record numbers of assets on auction and property speculators have streamed back into the market,” he adds.
Levitt claims the World Cup had a negligible impact on the property market. This year property worth just under R10-billion a month was sold in South Africa and analysts expect sales levels to fall further in the coming year.
Readers' Comments Have a comment about this article? Email us now.
About the Author
House for sale in Westville R 1 795 000
Apartment / Flat for sale in Ashley R 495 000
Townhouse for sale in Uvongo R 750 000
House for sale in Norkem Park R 1 150 000
Farm for sale in Koster R 9 000 000
Apartment / Flat for sale in Pretoria Central R 180 000
Vacant Land / Plot for sale in Dullstroom R 290 000
House for sale in Hartenbos Heuwels R 2 295 000
House for sale in Pringle Bay R 3 900 000
House for sale in Hermanus R 1 650 000
If you are using Internet Explorer 8 or higher, please verify that your Internet Explorer compatibility view settings are not enabled.
For the best browsing experience update to the latest Version of Internet Explorer or try out Google Chrome or Mozilla Firefox.
Please contact our Customer Service Centre for further assistance. Tel. +27 (0)861 111 724