Local property market takes strain - light at the end of the tunnel

International economic turmoil, Southern African economic uncertainty, and local market fluctuations are influencing home owners' willingness to sell. This is according to the Estate Agent Survey released by FNB. The survey reveals that consumer confidence is being surpressed by these economic uncertainties and although there is not a whole lot to be inspired by at the moment, there are still markets defying this trend.
Local property market takes strain - light at the end of the tunnel
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The survey identifies the City of Cape Town as the city whose households are showing the most financial strength. Harcourts has also identified this city as an area of growth and have seen the defying increase within our markets operating in the Western Cape.

In Somerset West, estate developments are in high demand and 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.

Coastal regions defy inland trends

Coastal regions will always defy inland trends due to their holiday accommodation / property attractibility. The rand might be gaining ground but South Africa remains a primary location for international travellers and property invesors.

Sellers also need to keep in mind that many of these surveys consider effects like political turmoil and that their consequences on the property market are from a holistic perspective. However, when you have a home that is priced accordingly, marketed properly, and you've partnered with an agent willing to go the extra mile, then you've got an opprtunity to make a sale. At the end of the day, it is just a trade on a foundational level.

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.

About Richard Gray

Richard Gray is CEO of Harcourts Real Estate South Africa. He joined the group in September 2010. Gray brings extensive experience in IT, project management, corporate operations and financial services provision, having been CEO of mortgage originator Bond Choice, to the table. He believes that the key to the group's prospects are the strong brand, industry-leading value proposition, talented people, and the benefits of being part of a powerful international real estate group.
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