"Investors in the high- and mid-value market can expect growth of between 5% to 7.5% this year"
Steady house prices in the last half of 2017 and first quarter of 2018 may be the tonic needed to settle the auction property market and provide a springboard for future growth, says Roy Lazarus, of Park Village Auctions.
“Lower inflation, interest rate cuts and a more investment-friendly political dispensation bode well for the industry in future, with investors returning to the safe haven of property. The industry is likely to gain traction slowly before gaining momentum later in the year.
“Experts predict the national gross domestic product to grow between 0.7% to 1.5% and we believe this will give rise to growth of up to 5.5% on national house prices, and even more in the top-performing segments. Investors in the high- and mid-value market can expect growth of between 5% to 7.5% this year, and entry-level houses are in higher demand than ever before,” Lazarus says.
However, returns on property investment are likely to remain moderate so he advises potential investors to:
* Carefully research target properties.
* Establish the areas’ investment credentials.
* Buy at the right price.
“Properties sell closest to true market value on auction.
To make the best decisions, buyers should watch newspapers’ auction pages and visit the Park Village Auctions website www.parkvillageauctions.co.za daily to look for property investment opportunities. Depending on the location, bidders can either physically attend an auction or log into the live online facility,” Lazarus says.