Why is NOW the best time to buy in Simonstown?
April 30, 2007 – 1:56 pm | by JohanNew Here? You’re Invited To Simon’s Town News Updates Subscribe here.
Simonstown: Scarcity and house price inflation go hand in hand.
Although the South African property market is healthy at a predicted 11.6% average year-on-year house prices inflation for 2007 will be dramatic in 2008 due to “scarcity” and will directly influence the Simonstown residential property market.
According to FNB Property Strategist John Loos the residential property inflation during the boom years was due to “demand-pull” caused by the interest rates but are now changing to a strong “cost-push”. Click on the property graph below.
Due to increases in commercial property and government projects there is a sharp inflation in building cost and a short supply of skills and services. Not only the building cost inflation but also the economic growth, more disposable household income and the rapid growth in middle class numbers will lead to rapid growth in housing demands and inflate the value of more expensive homes. Even properties outside of the metro-poles like Simonstown will feel the effect.
Loos also sees the land scarcity in the metro poles and the inefficient infrastructure like transport to play a major role in the property price inflation.
As some people move closer to work and school other groups move to places like Simonstown to get away from the chaos and crime of the cities of the cities. During March 2007 most of the property bought in Simonstown was by people from Gauteng.
You as a fellow Simonstown resident you are already aware of the 27% premium payable due to scarcity and exclusivity of property in the Simonstown area. But you will also be aware of the better infrastructures and the proximity to Cape Town.
Taking in consideration the predicted house price increase in 2008, the building cost inflation, the scarcity of land, the percentage of “foreigners” buying in Simonstown and the international media coverage during 2010 the time to buy in Simonstown is NOW!
Johan Horak
P.S. I am not suggesting that you purchase a property to make money from rental income during 2010. All I propose is that your Simonstown property will inflate dramatically due to the scarcity of land, skills and infrastructure due to 2010 and due to the way people plan to live. And Simonstown is a unique choice for people like you and me.
Tel: 082 870 2004
SimonsTownRealty: Sell, Buy A Simon’s Town Property? Phone Today 021-7864028 or 082 870 2004
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