2016 from the same period in 2015 , to around ZAR 1.27 trillion . An increase of financial pressure on SA households due to the expected fallout following the country ’ s downgrade is likely to increase this figure in 2017 .
Natalie Muller , Regional Head of Rentals for Jawitz Properties Western Cape , predicts that , as far as rentals go , high risk tenants will become more exposed and landlords might start to see more tenants starting to default on their payments . South Africans are being encouraged to pay off as much high-interest rate debt as possible , and to become more frugal in their spending . This does not equate to buying property or taking on more mortgage-related debt .
What ’ s next ? The jury is out on the continued growth of the Cape Town property market in the months to come . Will semigration to the WC continue , despite higher rental and property prices in the region ? Will more families decide to rent , choosing to delay their first property investment purchase further ? And will planned spending on urban renewal and infrastructure development in the City continue or will it need to be put on temporary hold ?
Time will surely tell .
INCREASED DEMAND ON INFRASTRUCTURE
A recent Baker Street Properties article highlights that City ’ s capacity to roll out infrastructure to support demand in housing is also being outstripped by the rate at which Cape Town is welcoming new residents .
“ Expect more time in your car or transport , increased parking fees and a rising premium on sectional title living close to main commercial nodes such as the CBD , Seapoint , Claremont , Century City and The V & A Waterfront ,” the article concludes .
According to Rob Kane , chairperson of the Cape Town Central Improvement District ( CCID ), “[ t ] he values of private property in the CBD , even of underutilised commercial buildings , are now such that it has become difficult for private developers to construct affordable housing ”. Kane points to a public-private partnership that could successfully enable this to occur .
RESOURCES
2016 State of Cities Report , Lew Geffen Sotheby ’ s International Realty , Seeff , MoneyWeb ,
Business Tech , PayProp , Baker Street Properties , Sygnia Asset Management Company , IOL , News24 ,
Fin24 , Global Property Guide , Jawitz Properties , Chas Everitt International ,
www . reimag . co . za MAY 2017 SA Real Estate Investor 15