The impact of CT’s drought on the property market
It might not matter to you when looking at property for sale in Soweto, but there was an interesting impact on the property market during Cape Town’s water crisis. We find out what happened as well as what the recovery has been like, as this disaster could be repeated almost anywhere.
Those who are buying property for sale in Soweto may not have any concern about the recent water crisis in Cape Town, but it is interesting to note how their recent drought affected the city, including their property market.
The Mother City almost became the first city in the world to run dry, and this had a massive impact not only on the way the residents had to change their lifestyles, but also on the way people approached the city.
According to Jawitz Properties South Peninsula principal, Harold Kolnik, most of their offices in 2017 were experiencing their own drought in property stock as buyers were put off.
The crisis also hit the tourism market quite hard, with lower holiday rental occupancy during the period. And bouncing back from the disaster is not a simple as one would hope either, with a number of regular visitors still being unaware that the situation has been turning around.
In July 2018, Cape Town’s dam levels had returned to being over 50% full, which ensured at least two years of water security based on the current levels of use.
However, there was a positive note from the situation, with residents in the city embracing the need to save water, as they installed tanks to collect rain water or recycled grey water to become less dependent on fresh water for their daily routines. Not many places in the world enjoy water security for the long-term, and this habit could assist future generations in Cape Town.
Another interesting side note was that despite the crisis being all over the news, foreign buyers remained interested in property options available, and there has actually been a continued increase in foreign property investment over the last few years.
