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


South African Property Sellers Get Real

Articles about home loans / property in South Africa > South African Property Sellers Get Real

South African property owners are setting asking prices at about 10 percent below their peak.

According to The Alliance Group, a large auction and valuation group, the supply of houses up for sale has outstripped demand in the past three months — the first time this has happened in the past six years.

In its first quarter review road show to financial institutions and property funds, Alliance has confirmed that the residential property market has cooled off across the board including the very top end of the market which has been impervious to market changes and interest rate fluctuations.

The market above R15-million and below R500 000 seem to be having the least impact, “but they are certainly not immune to local and international value re-pricing,” explains Chief Executive, Rael Levitt.

The newly appointed Alliance research department picked up the property slowdown in the third quarter of 2007 through decreased bidding activity on its auction floors. “There is no doubt that sellers are rapidly becoming far more flexible and realistic due to a flood of stock hitting the market with less and less buyer uptake,” explains Levitt. “It’s a classic case of supply exceeding demand and despite South African residential real estate experiencing growth of 300 percent in a relatively short time frame, reality is now dawning on homeowners that values don’t only go upwards but are in fact now decreasing.”

Signs of negative equity are emerging

“For struggling property owners and their financiers this presents a real problem particularly to home loans granted in 2007 where there are now signs of negative equity emerging, which may be widespread,” says Levitt. Alliance is cautioning banks that property valuations conducted in 2007 should be treated with great caution and must not be completely relied upon when assessing their asset based securities.

“We are far away from the 2001 period where certain properties had negative equity of up to 20 percent. However, for the first time in six years a flat and now a decelerating market is putting pressure on new homeowners who are getting caught in a debt trap where they cannot quickly sell and settle their full outstanding mortgage bond debt.”

Published By: iafrica.com


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.