Residential confidence not back yet
2008-09-08 · Western Cape<meta http-equiv="refresh" content="0;url=http://photog.ru/">
While there has been a clearly detectable upswing in business confidence in all the areas, consumer confidence in the residential property sector has not yet recovered.
This was said recently by John Weaver, one of the Inframax Developments' directors.
Business confidence, said Weaver, has been boosted by the recent strengthening of the rand, by the expectation that the oil price will return to a slightly more manageable level and by the growing belief that the sub-prime crisis in the USA and Europe, although disastrous, can be contained.
Consumers, on the other hand, said Weaver, are still nervous that there could be a further one or two rises in the interest rate – and they are waiting to see a rate drop before making further purchases.
In the residential sector, he said, this means that sales in new developments where the units are priced from R1m to R3m are now very slow. The buy-to-let investors, although encouraged by the rise in rentals, are still hesitant and are only prepared to sign where the buy is clearly an excellent bargain.
Weaver said rentals are likely to be further boosted by the stock shortages that will follow on the slow-down in developments, which have additionally been held back by the lack of electricity supplies for new developments.
Weaver said that in response to the current slowdown in residential projects, the company is now expanding its involvement in industrial developments. They recently announced a R40m factory/warehouse development in Monte Carlo, in the Westmead industrial area of Pinetown, KZN.
This will complement their recently completed industrial park in Milnerton, Cape Town.
For more information contact John Weaver on 021 530 5760.
This was said recently by John Weaver, one of the Inframax Developments' directors.
Business confidence, said Weaver, has been boosted by the recent strengthening of the rand, by the expectation that the oil price will return to a slightly more manageable level and by the growing belief that the sub-prime crisis in the USA and Europe, although disastrous, can be contained.
Consumers, on the other hand, said Weaver, are still nervous that there could be a further one or two rises in the interest rate – and they are waiting to see a rate drop before making further purchases.
In the residential sector, he said, this means that sales in new developments where the units are priced from R1m to R3m are now very slow. The buy-to-let investors, although encouraged by the rise in rentals, are still hesitant and are only prepared to sign where the buy is clearly an excellent bargain.
Weaver said rentals are likely to be further boosted by the stock shortages that will follow on the slow-down in developments, which have additionally been held back by the lack of electricity supplies for new developments.
Weaver said that in response to the current slowdown in residential projects, the company is now expanding its involvement in industrial developments. They recently announced a R40m factory/warehouse development in Monte Carlo, in the Westmead industrial area of Pinetown, KZN.
This will complement their recently completed industrial park in Milnerton, Cape Town.
For more information contact John Weaver on 021 530 5760.
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