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WHILST the property market in SA is enduring a difficult period with property values stagnating, opportunistic investors are actively cherry-picking plots and properties "at an ever-increasing rate", according to local property developer Realcor Cape.

"A buyers market it may well be at present, but above-interest property values have been a source of income for property owners for more than 25 years," says company CEO Deonette de Ridder.

Encouraged by the views of some economists who suggest an improvement in the industry within the next few years, she says property investors "will reap the benefits over the next five years" for holding onto their stock.

"Riding the wave will undoubtedly have a positive effect on the property market as a whole and assist in reducing stock and increase demand. An increased demand will only have a positive outcome on investment revenues," De Ridder says.

"It is true to say that the increase in interest rates has had a detrimental effect on the fluidity of the market and has been instrumental in the pervasion of the current uncertainty."

Interest rate hikes, viewed by some as a stick to beat the consumer, have been necessitated not only by the endless demand for credit, but by many other global influences. The once strong Dollar has lost much of its value and the consequences are yet to be fully felt.

"In itself, a weakening Dollar should not directly affect property values in Rand terms, but it can have a destabilising consequence that creates volatility," De Ridder says.

"Canny investors will continue to invest in this apparent "buyers market" and appreciate the benefits in just a few years, likewise property owners that can, should batten down the hatches."

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