PROPERTY MARKET IN 2009
2009 has been a tough year for property. Plett has not been as badly affected as the rest of South Africa, with the exception of some vacant land (currently in oversupply). The graphs to the right give an indication that total value and number of sales have dropped right off, and the steady increase in average prices is levelling off. The last bars on the graphs represent 2009 (purple is all sales, blue is freehold and yellow is sectional title), but obviously not all sales have registered yet, and there is still a quarter to come. We have seen an increase in interest over the past month, as prices continue decreasing.
2008 was down by almost half of the peak years value and units, and it appears that 2009 will be worse. On a positive note, property is moving again in Guateng, even though prices are still declining, which means that we should feel these positive effects over the summer season, as this is where majority of our buyers come from.
We do not expect there to be an upswing for a few years, because there are still a large number of bank properties in possession that have to come on the market locally, and the global market is unlikely to improve while the USA still has serious mortgage issues to work through.
Seller's need to price right if they want to sell, or else rather take the property off the market for a couple of years so that it does not go stale while waiting for the upswing. Buyers are picking up excellent investments.