Property market still seeing good profits amidst slow economy
While our economy is likely to remain slow throughout 2018 due to further cost hikes and the high price of petrol, our property market is still having good growth in both turnover and prices, according to Stuart Manning, CEO of the Seeff Property Group.
What remains a concern aside from the economic pressure, is the political commotion and policy uncertainty around land expropriation. Several buyers have become hesitant as a result of this, particularly those at the higher end of the market, both local and foreign buyers alike.
Despite the economic challenges, the market is still seeing good profits. While things are slower, there has still been price growth and several reasons to invest in property. There are many areas who have had excellent trade with especially the lower to mid-market sectors being quite active.
Manning says while downmarket conditions are often characterised by speculators searching for good buys, it also brings buyers who are serious, but one has to obviously know the difference. There are a lot of sellers who are still closing good deals as they adapt to the changing conditions. They may not be seeing huge profits, but they are still making money.
