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What is currently affecting SA’s property market?

18 Jul 2016

International economic turmoil, southern African economic uncertainty and local market fluctuations are influencing homeowners' willingness to sell.

“It is important to keep yourself informed on the economy, but as we always advise, an agent that is up to date and has your best interests at heart will often be able to generate interest - even in the most flat markets,” says Gray.

Richard Gray, Harcourts Africa Chief Executive Officer, says this is according to the Estate Agent Survey released by FNB. The survey reveals that consumer confidence is being suppressed by these economic uncertainties.

Although there is not a whole lot to be inspired by at the moment, Gray says there are still markets defying this trend.

“The survey identifies the City of Cape Town as the city where households are showing the most financial strength,” he says.

“We have also identified this city as an area of growth, and have seen the defying increase within our markets operating in the Western Cape.”

Gray says Somerset West estate developments are in high demand, attracting a lot of investment from local and international buyers.

“The same growth can be seen in the Northern Suburbs, with our offices there reporting stable growth,” he says.

“Coastal regions will always defy inland trends due to their holiday accommodation and property attractiveness. The rand might be gaining ground, but South Africa remains a primary location for international travellers and property investors.”

Gray says sellers need to keep in mind that many of these surveys consider effects like political turmoil and their consequences on the property market from a holistic perspective.

“However, when you have a home that is priced accordingly, marketed properly and partnered with an agent willing to go the extra mile, you’ve still got an opportunity to make a sale. At the end of the day, it is just a trade on a foundational level,” says Gray.

“It is important to keep yourself informed on the economy, but as we always advise, an agent that is up to date and has your best interests at heart will often be able to generate interest - even in the most flat markets.”

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