Those looking at property for sale in the East Rand, and other parts of the country, currently face a tough market that is in a bit of a downward trend.
According to Samuel Seeff, the chairman of the Seeff Property Group, there are a number of factors that have made an impact on the market, including the technical recession, the land expropriation issue and some global pressures.
However, despite the dip, it is important to note that this is not even the most difficult period in the market within the last 30 years. To give you some context, we look at some important moments in the market over that period
- 1980s – Interest rates were surging up to 25% and selling a property in Camps Bay was almost impossible. Nowadays, entry level prices in this area are up to R10 million!
- 1990s – The revolution had been looming and the market was almost lifeless. By 1998 interest rates peaked at a mammoth 25.5%, and this was despite there being growth in the economy. Interestingly, during that time there was a seafront development built in Clifton which struggled to sell at R1.5 million. The same place today will fetch R30 million, while a parking space alone could cost R1.5 million.
- 2000s – This was not the best decade despite an economic boom. The National Credit Regulatory was introduced which saw the ability to get finance made more difficult, while banks were also less lenient. The 2008 Global Financial Crisis then struck that lifted interest rates once again and saw the market tank.
- 2010 – A mixed period so far with the World Cup kicking things off but slow market recovery up to 2014. 2017 saw a bit of a boom, especially in areas with higher demand.
With this in mind, it is still a decent time to be moving in the property market, and as long as you are realistic about price, you could still buy or sell at a point that leaves both parties happy.
