Gauteng trumps coastal prices
Posted by propertysouthafrica on December 31, 2007
The high interest rates environment is expected keep property prices in coastal regions lower than those in Gauteng due to a higher degree of non-essential investment and holiday buying in the coastal markets, a property strategist said on Tuesday.“Activity levels, as viewed by estate agents in various regions, are lower in the coastal regions compared with the Gauteng market,” said John Loos, property strategist at FNB.
He added that it was no surprise, as coastal regions had a far greater component of holiday and investment buying activity, which was more sensitive to interest rates and economic cycles.
But Gauteng’s market is dominated by less cyclical and primary residential demand, making it essential for buyers to come into the market despite a higher interest rates environment.
Loos noted that property prices in KwaZulu-Natal were the weakest among major coastal cities, while in Gauteng, Tshwane was setting superior capital growth and activity levels compared to other major metros in the province.
- Tiisetso Motsoeneng, I-Net Bridge
