PROPERTY NEWS - Property by its nature has and always will require management. Since 1994, South Africa has become a popular choice for foreigners to buy investment properties.
This combined with the past economic growth in South Africa has meant more and more residential properties have been built over the last two decades. This has led to an increase in the demand for quality property management companies.
We believe property makes up the cornerstone of wealth preservation in any country. South Africa is no different. Whilst the appreciation of property was set back considerably by the 2008 global recession, Cape Town has shown continued excellent growth and returns of around 10% per annum. We are firm property “bulls” and feel as an asset class it offers security and is an excellent long-term investment.
SA property market in 2020
Regardless of the economics of the country, the fact of the matter is South Africa’s population is growing. By 2020 a larger, younger movement of citizens will continue to flood into urban cities looking for jobs and a better lifestyle.
To cater for this the cities will need to make provision for more medium to low cost housing, and by doing so would likely keep the existing markets very much buoyant well beyond 2020.
As such the demand will exceed supply and lead to an increase in rental and sales prices over the long term.
Challenges for SA property managers
SA property managers will face challenges related to efficiency and delivery over the next year. There is a lot of competition as the industry has matured and current margins are squeezed. More now than ever property management companies need to become lean.
We believe property makes up the cornerstone of wealth preservation in any country. South Africa is no different. Whilst the appreciation of property was set back considerably by the 2008 global recession, Cape Town has shown continued excellent growth and returns of around 10% per annum. We are firm property “bulls” and feel as an asset class it offers security and is an excellent long-term investment.
SA property market in 2020
Regardless of the economics of the country, the fact of the matter is South Africa’s population is growing. By 2020 a larger, younger movement of citizens will continue to flood into urban cities looking for jobs and a better lifestyle.
To cater for this the cities will need to make provision for more medium to low cost housing, and by doing so would likely keep the existing markets very much buoyant well beyond 2020.
As such the demand will exceed supply and lead to an increase in rental and sales prices over the long term.
Challenges for SA property managers
SA property managers will face challenges related to efficiency and delivery over the next year. There is a lot of competition as the industry has matured and current margins are squeezed. More now than ever property management companies need to become lean.
