Real Estate news - Worst slump since '86
THE 2010 Soccer World Cup is drawing closer and the extensive global exposure of SA is expected to result in an increasing number of visitors to the country and ultimately a hugely increased investment in property.
As we start approaching the six-month build-up prior to the World Cup, it is likely that the hype and enthusiasm generated will have a positive effect on all segments of the market supplemented by the favourable and significant infrastructural spend, Pam Golding Property group CE Andrew Golding says.
The biggest impact of 2010 on the property market in Johannesburg will be the significant increase in the value added to homes in and around the huge infrastructural development that is being put in place for the event, says PGPs MD for Gauteng, Ronald Ennik.
The huge R700m urban renewal programme being rolled out in the Ellis Park precinct and a R170m upgrade of the bordering Hillbrow and Berea areas are expected to bode well for home values in the area. The developments are also expected to provide a stimulus for homeowners to upgrade their homes.
Homes close to or within the high-density nodes that are planned for the areas around the stations of the R20bn Gautrain rapid rail project are likely to benefit from added value. The multibillion-rand rapid bus service will have the same effect on the homes on or near its route.
Laurie Wener, MD for PGP in the Western Cape, says as the new stadium in Green Point takes shape, including infrastructural improvements such as a new network of roads, there is no doubt that in the medium to long term the area will have been substantially improved to the benefit of local residential properties.
In Durban, PGP area manager Carol Reynolds says the greatest influence of the event has been regarding the sale of B&Bs and guesthouses, where there has been a marked increase in inquiries.
In Polokwane, PGPs Linda de Witt says the World Cup is already bringing in an unusual number of people to the area, including contractors working on infrastructural improvements such as roads, and specialists for the stadium itself. This is creating a huge demand for houses to let.
In Bloemfontein, Hennie Aucamp says 80% of suburbs are within easy reach of the stadium, and houses in the R700 000 to R850 000 price range are in high demand, as these properties will earn a good return on investment.
In Nelspruit, Sakkie van Rooyen says while he believes the greatest spin-offs of the event lie in the hospitality industry, his focus is on the rental market where homeowners can let their homes out on a daily basis to World Cup visitors.
Source: Business Day
Article from: www.eprop.co.za