The Cape lifestyle and its relatively low crime figures continue to attract upcountry home buyers to all the Cape Peninsula areas that Greeff Properties service, says Mike Greeff, CEO of Greeff Properties – but, he adds, this can call for a significant scaling down on the part of the non-Cape buyer.

“We have had cases where the upcountry person has sold a house in Johannesburg for R3 million only to find that a similar home in a similarly “good” area at the Cape will cost him R5 million. Even those who have done their research and checked on Cape prices often cannot fully accept what Cape homes cost and end up renting rather than buying.”

Taking a long term view, said Greeff, the buyers who do take the plunge can be comforted that if they downscale, at least initially, to secure a home, they will find that they have bought into one of the most stable of SA’s property markets – in which he predicts average house prices will rise by 8% this year.

“As we see it, during 2010 the significant rises will be in the R1 to 3 million bracket. This is where we are currently seeing 80% of our sales occurring, but by 2011 the more expensive homes will have taken off on the back of the world economic recovery. Already we are seeing among our buyers stock exchange “winners” and considerably more UK and European buyers.”

Those who are sceptical, said Greeff, should take cognisance that this January his Southern Suburbs branch has sold 18 houses and the City Bowl, Camps Bay and Hout Bay teams a further ten.

“We are experiencing a completely different market situation to that of 2009,” said Greeff. “What is more, it seems possible that we will get a further 0,5% interest rate drop in the coming months and this will further strengthen demand.”

Article by: www.greeff.co.za