Property Market To Remain Steady in 2009 - 12-18-08

December 18 - As a number of top property market experts give their predictions regarding the industry for the new year, Gerhard Kotze of ERA property group decided to offer his own opinion about what is in store for us.

Kotze believes that the property market will remain generally steady, with no "speculative/investment element that drove the market to dizzy heights three years ago." Instead, Kotze thinks that the usual elements will dictate supply and demand in the market. And while he predicts that nothing drastic will happen, Kotze does not see the property experiencing any type of revival before the last part of 2009.

"The numbers tell the story," he explained. "Public sector spending amounting to R180 billion in 2009 on the likes of roads, rail facilities and ports that will prime the economic pumps. And World Cup spending is only 5% of this and the Gautrain 2%, so there's unlikely to be a post 2010 hangover, suggesting that the property market will continue a steady climb out of the doldrums over the coming years."

Kotze compared the South African economy to other developing countries and showed that in relation to the rest of the globe, South Africa was in a better position than most. "In nearly all other measures, the country has performed well in recent years and notwithstanding much political posturing, the lives of millions of South Africans have improved by virtue of 2.6 million houses built and with water, sanitation, electricity delivery all very much improved, boding well for social stability."

Kotze pointed out existing problems, including growing crime rates, and corruption but he believes in the grand scheme of things, the property market will steadily improve over the course of next year.