Wednesday, June 11, 2008

The Outlook for the SA Property Market

A war of words has broken out between estate agents and bond originators as news of a pending property crash gathers force, with price drops from 10 percent to 40 percent predicted.

While some agents insist homeowners should not be swept up in the panic, others are frank that the property market is in serious trouble.

On Monday, the Cape Argus received an e-mail marked "urgent" from ooba, formerly Mortgage SA, which charged that "recent alarmist forecasts by property market commentators" had caused homeowners "undue concern". Homeowners, they urged, should not be swept up in the "scaremongering" because the current weakness was only a "short-term situation".

The fracas started with a letter from Lew Geffen, head of Sotheby's International Realty South Africa, to his franchise owners in which he predicted the pending crash at a 40 percent decrease, adding that there were 60 percent fewer buyers in the market now than at the same time last year.

These stirrings in the property industry are indicative of the problems now faced. With individual sales and transactions, Mc Naught and Company have the experience and expertise to help with each property sale and re-introduce certainty and reliability with each transaction being handled by our offices. We also offer guidance to estate agents' on customised clauses to help strengthen a sale agreement.

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