Property Investor Sentiment Improves - 09-02-08

September 2 - Two weeks after the South African Reserve Bank decided to keep interest rates at their present level and not go in for another increase, property experts across the board are reporting that sentiment in the property investment arena has definitely improved.

The results can clearly be seen on the auction floors of both commercial and residential properties up for sale, as more buyers than ever attend these events.

Speaking for his company, Rael Levitt, the Chief Executive Officer of the Alliance Group said that interest  in property investment has not been so strong in more than a year. "And our success rates and bidding activity have literally changed overnight," he enthused.

Levitt said that the governor's decision not to increase interest rates had led to a feeling of relief among property owners who realize that South Africa is "most likely at the top of the interest rate cycle".

The Chief Executive Officer of the Claremart auction group, Jonathan Smiedt, said that they predicted that interest in property investment would pick up dramatically following the announcement by the Reserve Bank a fortnight ago. "We knew as soon as the governor stayed the increase in interest rates, this would show a semblance of governance and would pull the buyers back into the market again," he said.

According to Smiedt, a clear indication that things are getting back to normal is the fact that his group received over 100 calls regarding a particular property in Cape Town. This was practically unheard of in the past year as the property market took a sharp dive.