2983 current property buyers
Quick Property Search
Property reference no:
Town or Suburb:
Town:
Suburbs:


Can’t
find a rental or private sale?

Contact +99 estate and rental agents with one click.
apply here

Are you an estate agent?
You are not allowed to list on Private Sale or contact sellers. However, we will alert you of an Open Mandate.
apply here

Are you a Bond Originator?
Contact us for free leads
apply here

Are you a Conveyancing Firm?
Contact us for free leads
apply here


Power cuts good for property in South Africa?

Articles about home loans / property in South Africa > Power cuts good for property in South Africa?

While the energy crisis being experienced by the country will be negative for the economy and thus negative for property it might prove to be a "double-edged" sword in that it might be negative for property development but positive for property returns, according to FNB Home Loans Property Strategist John Loos.

Loos says that while the potential impact is almost impossible to quantify due to the amazing ability of humans to adapt – "so take the various financial estimates of the Eskom effect with a pinch of salt" - it is fair to say that there has to be some negative impact on business and economic growth.

However, because South Africa is relatively new to demand management both for electricity as well as for space, Loos says his feeling is that the business growth ceiling that Eskom places on South Africa is perhaps a little higher than what the alarmists would have one believe, for the time being at least.
"As a result, my view is that the 'Energy Crisis' will have a greater negative impact on the supply of new property stock in next few years than on business and economic growth. "The net effect of all of this, I believe therefore, will be positive for both commercial and residential property returns," he contends.

"From a property development point of view, however, I am far less optimistic, and the negative impact on the supply of new stock could be significant. This doesn't necessarily mean negative growth in new developments but merely slower positive growth than would otherwise have been the case," he says.
"Not all would be lost for the building construction industry, however, as a greater focus on alterations and additions to existing buildings could be stimulated by the power issue, as the drive towards 'greener' buildings and better space utilisation is stepped up," he adds.

Published By: Property 24

Back to Private Sale Property in South Africa Articles



Home | Gauteng | Western Cape | Kwazulu Natal Property | Eastern Cape Property | Free State Property | North West Property| Limpopo Property | Sitemap | Privacy Policy | Terms and Conditions |

© COPYRIGHT NWSE Properties CC t/a No Agent - Private sales and rentals of property in South Africa :: All rights reserved
Diclaimer: All information deemed reliable but not guaranteed. All properties are subject to prior sale change or withdrawal. Neither the listing franchisee, office, agent nor noagent.co.za shall be liable or responsible for any typographical, misinformation, misprints and shall be held totally harmless.