Are Simon’s Town Coastal Property Prices Also Weak?
Dec 24th, 2007 by Johan
This article on South African coastal properties it may have been written for Simon’s Town Property owners specifically:
South African coastal property prices remain weaker than the more primary-residence-driven non-coastal properties, new data showed recently.
Lightstone’s Residential Property Index showed that coastal property – homes within 500m from the coast – registered a 12.54% inflation rate in August, which is up from 11.98% in July. By comparison, the non-coastal property inflation in August was 14.25%, which is a slight drop from 14.47% in July.
“Interestingly, if one considers y/y inflation, non-coastal areas have seen a considerable drop of 4.00% from August 2006 when inflation was at 18.00%. Coastal areas have had a much lesser drop-off of 0.76% from August 2006 when inflation was 13.30%,” said Andrew Watt, a business development director at Lightstone Risk Management.
The lower coastal belt inflation rate, compared with the non-coastal inflation rate, is driven by holidaymakers, who are able to hold back in adverse times such as during the interest rate hiking period. – I-Net Bridge
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