2019 The shocks in the property sector will not be repeated
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2019 THE 'SHOCKS' IN THE PROERTY SECTOR WILL NOT BE REPEATED
For political and economic reasons which during 2018 he repeatedly identified and explained, says Rowan Alexander, Director of Alexander Swart Property, the property industry experienced many uncertainties and setbacks - and even those companies like Alexander Swart which increased their turnover significantly will look back on the year past as a tough period.
However, says Alexander, the 'low energy, demoralisation and loss of steam' that characterised the property sector in the last quarter of last year have now 'disappeared' - and there is a feeling of optimism and renewed hope about the prospects for 2019, especially in the areas in which Alexander Swart Property operates (Brackenfell, Kraaifontein, Durbanville and Kuils River).
"Very few of the negative conditions which bedevilled the property sector in 2018 and which in some areas like the Southern Suburbs led to 10% to 15% drops in house values have changed this year," says Alexander, "but among the developers, builders, attorneys and other Western Cape estate agents with whom I mix there is a feeling that, having survived 2018, from here on the property market can only improve. Significantly, we can see what lies ahead and we can predict that this year, unlike 2018, there should be no unforeseen 'shocks'."
Among the factors with which the industry in 2019 will have to come to terms, says Alexander, are that one or two interest rate hikes are more than probable.
"With the economy now showing the first signs of a slight upturn, inflation could be experienced and will have to be curbed by interest rate increases.
"In the political sphere which underwent radical changes in 2018 the perception now is that Ramaphosa achieved a great deal in his first year as President - and 2019, with further steps being taken to counter poor performances and/or corruption, South Africa will see a revival of its economy. The serious damages of the Zuma era are, it is now believed, slowly being worked through."
On the property front, says Alexander, the 'adaptations' in expectations and outlook of which he spoke in 2018 will once more be in evidence this year. Chief among these, he says, is that home buyers and developers will in 2019 have to accept that new build homes will now be smaller - in all price categories - because wages and salaries are no longer rising as they did previously. Alexander Swart was one the relatively few estate agencies that kept its offices open over the holiday period and they now report that the level of enquiries in encouraging high for this time of year.
"At Alexander Swart," he says, "we are targeting a further 20 % increase in turnover this year."
For further information contact Rowan Alexander on cell phone number 082 581 3116 or by email rowan@asproperty.co.za.
Author: Independent Authour
