There are many optimists out there who predict that house prices will start to recover by the end of 2009. Let’s think this one through.
The past few years have seen the winds of change blow through the property market, dramatically shifting the directions taken by investors and other property owners. The 2009 Rode & Associates annual conference and breakfast events have thus been tailored to help the industry weather the storm and plot a viable course for the future.
Health of building industry requires intensive care says latest <em>Rode’s Report on SA Property Market</em>
Good news in the latest Rode’s Report is that office rentals have, thus far, remained fairly resistant to the scourge of the economic slowdown.
The most recent residential property indices released by Lightstone indicate that the latest victim of the market downturn could be the one segment that has until now withstood the fallout.
The first law of investment is that returns are relative.
Cement sales, which have been declining since the beginning of 2007, continue to reflect the contraction in the building industry.
With demand for offices slowing down, a moderation in rental growth in this sector is a likelihood that must be considered. This is according to the latest Rode’s Report on the state of the South African property market in the first quarter of 2009.
During the fourth quarter of 2008, real GDP contracted by nearly 2% (annualized quarter-on-quarter), and the outlook for 2009 continues to look bleak. And you had better not expect any growth in 2009.
Interesting reading regarding the overall health of the building industry has been the deceleration in building-cost inflation.
The last scheduled electricity load-shedding may have happened as far back as April 2008, but we’re not yet out of the woods, considering the thin reserve margin of Eskom – not only now but for many years into the future. This margin is so thin that it puts a ceiling of about 3% annual growth on the South African economy for about seven years to come.