John Loos
John Loos
demand gradual growth housing increase prices property rate result since slowing stock stronger supply year
The result of mildly flagging demand growth and significantly stronger supply of new housing stock has been a gradual slowing in the rate of increase in residential property prices since about a year ago.
both buildings decline growth inflation pace rate reflective slowing total value
The slowing growth is reflective of a slowdown in the pace of growth both in house-price inflation, as well as more recently, a decline in the inflation rate in the total value of buildings completed.
commercial positive
Commercial property, on the other hand, has the more positive outlook.
essential expand industrial
It is essential for Durban to expand its industrial capacity.
behind damaging depends drivers economic economy far global higher impact interest lead local mitigate negative oil possible potential price provide rand rate rates short stimulus term weakness
More importantly it depends on the drivers behind any possible interest rate hikes. Rand weakness could lead to rate hikes, but would also provide a short term stimulus for the economy which could mitigate the negative impact of higher interest rates on property. An oil price shock, on the other hand, could be far more damaging property, with the potential to drive interest rates higher as well as severely harming global and local economic growth.
boom continue fairly good
It's still a fairly good story; the long-term boom will continue for some time.
coming economic factors hands port three
Economic factors in the other three metros will play into Port Elizabeth's hands in the coming years.
areas became becoming catching commercial mixed suburbs
They are now catching up. There was no commercial activity, while the (former white) suburbs were becoming mixed use areas which is why they became popular.
We are only two-thirds of the way through the long-term residential boom.
bound decline drive eat economic further growth industrial office property seen strong
Already we have seen a decline in office and industrial property vacancies and strong economic growth is bound to eat further into the vacancies. This should drive strong new development going forward.
city establish life others past quality terms
This could potentially leapfrog the city past the others in terms of life quality and establish it as a world-class city.
expected happen house housing market mild positive price stimulus
I hadn't expected much to happen on this front. It is positive for the housing market and it will be mild stimulus for house price growth.
activity building flats growth plans positive property
If you look at building plans passed, there is still positive growth for residential property development and a lot of this activity is the flats and townhouse market.
attracting fairly force government itself land needs ownership past proven sensitive wants
In the end I think what comes out will be fairly moderate. This government wants FDI. Land ownership is an attracting force for FDI and the government has proven itself in the past to be fairly sensitive to investors' needs and wants.