SA housing market remains strong

2008-01-08 00:00

Growth in house prices has slowed as business confidence declines, but South Africa remains one of the top markets in the world for building supplies inputs.

According to marketing manager of the electrical underfloor heating division of Danfoss, Claus Jakobsen: "South Africa has for the last two years been the top market in the world for growth of the Danfoss underfloor heating.

"This market has shown exceptional strength and resilience."

Growth in house prices slowed to a rate below 10% in November 2007 — but with a tenth of all houses being sold to foreigners and a fifth to those buying second properties, South Africa’s housing market remains one of the strongest in a world fearful of a sub-prime debacle.

And high-quality inputs into existing and new properties are seeing the building products market boom. The slump in the housing market appears to have been caused by a dip in business confidence, which the FNB Residential Property Barometer says has "gone down sharply".

Anticipated high municipal rate hikes, some of which only come into effect in July, are also depressing the market.

Interest rates that have not stopped their climb are also having an impact.

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