Do you think property prices in South Africa will continue to rise?

Question

There's been all this chat about slowing down of property prices and your average person evnetually being able to afford a property again in South Africa. What do you think?

Answer 1

I predicted in December 2004 that there will be a sharp slowdown in property prices in early 2007.
My next prediction is that this trend will continue; prices will rise again in 2010, slow down in 2011 and start declining in 2013. That is, in foreign currency, not rand. (coz the rand will also decline sharply from 2012)

Answer 2

There is currently a 'slowing' down in the property prices, they are still increasing but at a lower rate than in the previous couple of years.

The indication is that the market will be slow for the next 2 years and then have a boost again until after the 2010 world cup (if we can hold on to hosting it).

The problem for the people like me is that even though the prices have slowed down it is not coming down and I can't see the prices dropping in the near future. with the current cost of building and the almost impossible job of securing cement prices are most likely to rise and rise and rise.

Where I am currently staying there is no property available for under R1 mil (unless you are really lucky and are interested in 1 bedroom flats). The bond payment on R 1 mil being approx. R10,000 p.m that means you need a Household income of R 30,000 p.m to be able to get a bond approved. What average persons has this kind of money, especially the young people find it hard to break into the property market.

Answer 3

Hopefully it will happen. Houses and property are priced fairly high at the moment. Over the past 20 years property prices have steadily increased. There have been periods where the market has evened out after an increase but the prices did not significantly drop below the prior increase. The trend has been for the prices to rise again after having evened out for a while. If it follows the trend of the last twenty years it looks set to keep on rising.

Answer 4

It is a false economy and prices should continue to rise because of the shortage of building materials and the huge number of people without proper housing. However, with their attempts at social engineering the ANC will cause a drop in the value of houses in what the Tourist Industry euphemistically calls the "rich areas." Already Hout Bay is under threat of low cost housing projects being built next to multi million rand properties which will cause a drop in their value. However, the main problem remains the lawlessness that pervades South Africa and as more and more Whites are driven out of the Country to be replaced by incompetents then the Countries wealth will dissappear with them. Stick around for 10 years and you will probably pick up a valuable property for next to nothing if you are at the front of the queue.

Answer 5

I will be very surprised if the prices continue to rise after this proposal is implemented:
http://www.news24.com/News24/South_Africa/Politics/0,9294,2-7-12_2083108,00.html

I am in agreement with what Vango has predicted.
Once South Africa is out of the worlds eyes again (although even in the worlds eyes they don´t seem too shy about implementing radical policies) you will see the ANC fast tracking existing ANC land reform policies.

I believe that the best window for converting your South African assets into foreign currency (i.e. when immigrating) has come and is on it´s way out - I do not see the rand strengthening much again, and land prices can only decrease with land reform policies.
This is all part of the ANC´s strategy to make housing more affordable to all, as they have stated many times.

The question should perhaps be: Do you think the ANC will be successful with their strategy to lower property prices?

Answer 6

The prices will rise slowly over the next year and a half and then show a sharp acceleration leading up to 2010, thereafter the South African property market will crash when the communist ANC government begins implementing their land grabs and fascist property laws.
This is not a racist opinion, it is a predictable fact.

Answer 7

nicely you should likely use statistics particularly than your mate from South Africa no count number how unhappy his tale may be. Crime expenditures are lowering heavily in South Africa on the prompt yet they did spike in the Nineties. besides basically because the white community stopped oppressing the black community did not recommend that they had the wealth, means and training to fulfill there nicely placed center classification human beings in living criteria. like a number of unfavourable and deprived parts global there's a lot of crime. frequently the victims of those crimes are black human beings and not in any respect privileged white human beings. they can't have the funds for protection gaurds both which shows how apartheid truly lives on in some procedures. fortuitously in spite of the undeniable fact that their more beneficial obscene privileges are lengthy gone and they ought to work out the culmination of the poverty and inequality that society replaced into made on.

Answer 8

Yes. Ever up for the prices. Get some property and hold onto it.

Answer 9

Yes unless the government intervenes, some areas are just over priced and not value for money that is the real apartheid in our country.

Answer 10

South Africa being what it is today, especially with a high degree of political stability, people from neighbouring affluent countries do get attracted to that place for their own reasons and some of them go there for good, thus giving a boost to inflation, including housing!