Good buys in homes market

2011-08-05 00:00

DESPITE talk of the so-called death of the residential property market, there is still life left in this key sector.

Property heavyweights and a respected property economist have noted that although activity remains subdued, demand strength is evident in certain categories of the market.

Seeff chairperson Samuel Seeff noted this week that although the market is depressed, it is not dead.

“The market is moving slowly and prices are under pressure, but there is still activity,” Seeff commented.

“While the winter months are historically a time of lower trading volumes, this is a good time for smart buyers, especially first-time buyers and those looking to buy up or acquire investment properties to get their hands on excellently priced stock in the market.”

FNB property strategist John Loos said yesterday that relative demand strength is apparent in lower-income areas, categorised by properties valued at about R600 000.

Respondents to the FNB home-buying estate agent survey for the second quarter of 2011 were relatively upbeat about the prospects of this segment of the market. Responses for the lower-income end of the market rated demand strength at 6,21 out of 10, compared with levels of between 5,35 (high net-worth areas) and 5,97 (middle-income areas) recorded in other segments.

More first-time buyers have also entered the market this year.

Furthermore, Loos said, the middle-income sector of the buyer-profile is currently in the best financial shape.

Much has also been made of the fact that real house prices, as judged by FNB and Standard Bank, are falling to the tune of between 1,5% and 1,8%.

Adrian Goslett, CEO of real estate giant REMAX of southern Africa, said statistics are vitally important for investors and that proper analysis is required in order to determine the value of a property.

“Property buyers would want to know whether they are making a wise investment choice, and this can only be decided once they have researched and obtained the actual numbers and undertaken a comparative analysis with regard to pricing and types of properties that have been sold in a specific area,” said Goslett.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.