iAfrica 2 months ago 3 min read
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Despite the uncertainties surrounding the pandemic, the market for prime global residential property is expected to remain active as the long-term appeal of this sector holds strong – as sentiment improves amidst the rollout of the Covid-19 vaccine across the globe, and as the Biden administration plans a massive stimulus package to revive growth in the US, according to Savills World Cities Prime Residential Index.
Says Dr Andrew Golding, chief executive of the Pam Golding Property group, which is the Savills associate partner for the Sub-Saharan African region: “The prime residential forecasts for the 30 cities – which includes Cape Town – highlights the strength and ongoing stability of prime residential property, with average capital value growth for the cities in the index forecast at 1.6% for 2021. Cape Tow
The struggling economy means lower house price growth. (Getty Images)
The biggest obstacle for South Africa s residential property market in 2021 will be a predicted increase in the country s already very high unemployment rate in the wake of the Covid-19 pandemic, according to Berry Everitt, CEO of the Chas Everitt International property group.
He expects the number of distressed sellers to increase this year, bringing more inventory to the market, along with landlords who have been struggling for months with non-paying tenants and have now decided to offload some of their rental properties. There’s more to this story Subscribe to News24 and get access to our