Property Investment and Lifestyle Information for the Western Cape province, South Africa

<body bgcolor="#ffffff"> <h1>South Africa :: Western Cape :: Property Market and Property Investment</h1> <p><font face="Verdana, Arial, Helvetica, sans-serif">Figures from British magazine The Economist confirm that South Africa is now the <b>world’s fastest growing property market</b>. The magazine's global house price index, published in September 2004, showed that South Africa boasted the highest growth of all countries in 2004, with an average increase of 30%. Hong Kong came a close second, with growth of 29%. However, what's more interesting is that South Africa was also the best performing market over the<b> longer term</b>, boasting growth of 195% in the years between 1997 and 2004. This was followed by Ireland, with a 179% increase over the same period.</font></p> <p><font face="Verdana, Arial, Helvetica, sans-serif">          South Africa's housing market strength has also placed it in the top spot in ResearchWorldwide.com's 2004 world rankings of the 20 best performing countries  with a 32.6% increase in house prices. It also counted among the ten countries experiencing a rising rate of increase in the second half of 2004, the other countries being Belgium, Canada, China, France, Hong Kong, Israel, Norway, Sweden and the United States. The other ten countries saw a slowing in the rate of increase in house prices during the second half of 2004, easing fears that the worldwide housing boom bubble is about to burst. They are Australia, Finland, Ireland, Italy, Japan, New Zealand, Spain, Switzerland, The Netherlands and the United Kingdom. </font></p> <p><font face="Verdana, Arial, Helvetica, sans-serif">          South Africa is also one of only four countries worldwide that has managed growth in the real estate sectors of their <b>stock exchanges</b>. Fifteen out of nineteen countries saw this sector decline in value in April 2004 compared with March 2004, says ResearchWorldwide.com. The research group's Real Estate Performance Benchmark shows that April 2004 may prove to be the watershed month for a commencement in the downswing in real estate stocks worldwide. US stock exchanges recorded the largest fall. With the recent "whiff" of higher inflation, higher interest rates and higher economic growth in the US, stock market investors are now dumping real estate stocks. </font></p> <p><a href="../4_context_information/40-context-frameset.html">Context Basic Facts Administration Financial Business</a></p> <p><a href="50-property-frameset.html">Property Market Property Types Investment Options Purchase Processes</a></p> <p><a href="../6_geography_information/60-geog-frameset.html">Places Locations Cape Town West Coast Winelands Boland Overberg Karoo Garden Route Eden</a></p> <p><a href="../7_lifestyle_information/70-lifestyle-frameset.htm">Lifestyle Resources Culture Nature Climate</a></p> <p><a href="../8_recreation_information/80-recreation-frameset.htm">Recreation Sport Leisure Activities Tourism</a></p> <p><a href="../9-further-information/90-further-frameset.html">Other Information Books Further Reading Contact Us Index</a></p> <p><a href="http://www.frog-property.com">Frog Property Investment</a></p> <p><a href="http://www.andalucia.ft6.com">Information about Property and Lifestyle in the Costa del Sol, Andalucia, Spain</a></p> <p><a href="http://www.costamap.ft6.com">Map of the Costa del Sol, Andalucia, Spain</a></p> <p><a href="http://www.costatour.ft6.com">Property Guided Tour of the Costa del Sol, Andalucia, Spain</a></p> <p><a href="http://www.grehan.ukhq.co.uk">Voyaging the French canals and rivers in a boat and sailing a yacht in the Mediterranean Spain</a></p> <p><a href="http://www.lapina.co.uk">Self-catering holiday town house apartment to rent by Alhaurin Golf, in the Andalucia countryside, near beach, Costa del Sol, Spain</a></p> <p><font face="Verdana, Arial, Helvetica, sans-serif">Economic Factors</font><font face="Verdana, Arial, Helvetica, sans-serif"> </font></p> <p><font face="Verdana, Arial, Helvetica, sans-serif">          The South African housing market entered a expansionary phase in 2000, and has since grown at a nominal rate of 17% p.a., or 11% p.a. in real terms. The increase is generally ascribed to pent-up demand resulting from the long period of political uncertainty, which reduced demand from 1984 to 1999. But the real root of the problem prior to 2000 was not so much the political instability, but rather <b>lax fiscal policy</b> between 1989 and about 1997, says Rode & Associates CEO Erwin Rode. From 1989, monetary policy battled inflation without any aid from fiscal policy, resulting in extremely <b>high real interest rates</b> for a long period. In the dying days of apartheid, the old government allowed the budget deficit to grow as the priority was to prevent a revolution either by the left or the right. After 1994 it took the new government a few more years to address the fiscal problem. This extended the period of high real interest rates  resulting in a depressed economy and a depressed house market. Rode confirms that the recent housing boom has been driven by <b>low interest rates</b> and the longest period of <b>uninterrupted economic growth</b> in half a century. Other encouragements have included R50.6bn in personal tax relief measures between 2000/01 and 2004/5, annual reductions in transfer duty on property since 2001/2002, the abolition of stamp duty on mortgage bonds as from March 2004, the strong growth of 3,2% per annum of real disposable income of households since 2000, the improved investment status of property compared with that of other underperforming asset classes, and relatively low CPI inflation. </font></p> <p><font face="Verdana, Arial, Helvetica, sans-serif">Supply and Demand</font><font face="Verdana, Arial, Helvetica, sans-serif"> </font></p> <p><font face="Verdana, Arial, Helvetica, sans-serif">          Property economist Erwin Rode, has also said it was evident the residential property boom was still accelerating. "One can expect this to continue for a long time because the growth rate has a momentum that is not easily reversed unless something catastrophic happens," he said. Rode said this implied the residential property boom could last for another year. "It's evident that supply is not keeping up with demand," he said. "There's a long lag between change in demand and change in supply." ABSA said last week that the supply of new residential buildings, including townhouses, flats and houses, had not kept up with the burgeoning demand. </font></p> <p><font face="Verdana, Arial, Helvetica, sans-serif">The 2010 Football World Cup</font><font face="Verdana, Arial, Helvetica, sans-serif"> </font></p> <p><font face="Verdana, Arial, Helvetica, sans-serif">          South Africa’s winning bid to host the 2010 world cup will give an instrumental boost to the economy. It is expected to bring nearly R30 billion into the country, create 150 000 jobs, and become a major catalyst for the economy to grow at between 5 & 6%, as well as resolve many of the country's problems. There is no need to mention what impact this will have on property, especially tourist-focused property. </font></p> <p><font face="Verdana, Arial, Helvetica, sans-serif">Second-home Ownership </font></p> <p><font face="Verdana, Arial, Helvetica, sans-serif">          World-wide, the relaxation of exchange controls, more foreign travel (facilitated by the increase in low-cost flight destinations) and greater availability of low-cost mortgage finance are persuading more people to extend the concept of second-home ownership to overseas locations. Ian Slot, national chairman of Seeff Properties, says that economists expect house price growth in South Africa of between 15% and 20% over the next 12 months, which will probably outpace most housing markets elsewhere in the world. </font></p> <p>They enjoy the highest per capita income, life expectancy and the second highest literacy rates and educational achievement levels in South Africa. The unemployment rate is also the lowest in South Africa, at 13%.</p> <p>apartment, beach, bulgaria, Bulgaria, buy, california, California, camps bay, Camps Bay, Cape Town, cape west, capetown, Capetown, clifton, Clifton, condominium, co-ownership, costa, costa blanca, costa brava, costa del sol, cote d'azur, countryside, croatia, Croatia, culture, data, deal, developer, development, education, emigrate, emigration, estate agent, evidence, farmstead, flat, florida, Florida, Frog, Frog Properties, fund, garden, golf, government, growth, growth fund, guide, healthcare, holiday home, home, house, information, infrastructure, investment, investment fund, land, loan, mortgage, new zealand, New Zealand, newcombe, Newcombe, pension, pension fund, penthouse, plot, price, prices, profit, property, property market, purchase, recreation, reference, relocate, relocation, rent, rental market, retirement, safe, sailing, security, sell, shared ownership, simonstown, South Africa, Spain, spain, sport, st helena, St Helena, statistics, stellenbosch, table mountain, tennis, timeshare, townhouse, vacation, villa, western cape, Western Cape, westerncape, wine, winery</p> <h1>Clear, comprehensive information about the Western Cape</h1> <p>property, investment, reference data, infrastructure resources, lifestyle and geography. No adverts. No selling.</p> <p>The Western Cape or Cape West</p> <p>South Africas Western Cape province is truly one of the most desirable places on earth to live and work. It is like New Zealand or California or Florida or the Spanish Costas. Wonderful climate, and beautiful scenery and geography and beaches. With one of the worlds most attractive cities, Cape Town and its exclusive suburbs Clifton and Camps Bay. Many British people have moved there. It is a safe and secure area with a modern well developed infrastructure of roads and telecommunications. Excellent education system including schools, colleges and universities.</p> <p>This is a great place to buy property or to invest in property, with a stable and rising market and where properties are comparatively cheap compared with other places in the world that are as attractive. The countryside includes wineries and farmsteads. You can play golf and live in one the many lush golf condominiums. Or play tennis, or sail or indulge in one of many watersports. The language spoken is English.</p> <p>You can find and purchase land or plots. Or buy an apartment or a villa to live and work in, or as a holiday home or second home or as a great investment with secure growth potential. Urban, rural or suburban.</p> <p>This website is a guide to the Western Cape, clear comprehensive information about the Western Cape.</p> <p>Apartment, beach, bulgaria, Bulgaria, buy, california, California, camps bay, Camps Bay, Cape Town, cape west, capetown, Capetown, clifton, Clifton, condominium, co-ownership, costa, costa blanca, costa brava, costa del sol, cote d'azur, countryside, croatia, Croatia, culture, data, deal, developer, development, education, emigrate, emigration, estate agent, evidence, farmstead, flat, florida, Florida, Frog, Frog Properties, fund, garden, golf, government, growth, growth fund, guide, healthcare, holiday home, home, house, information, infrastructure, investment, investment fund, land, loan, mortgage, new zealand, New Zealand, newcombe, Newcombe, pension, pension fund, penthouse, plot, price, prices, profit, property, property market, purchase, recreation, reference, relocate, relocation, rent, rental market, retirement, safe, sailing, security, sell, shared ownership, simonstown, South Africa, Spain, spain, sport, st helena, St Helena, statistics, stellenbosch, table mountain, tennis, timeshare, townhouse, vacation, villa, western cape, Western Cape, westerncape, wine, winery.</p> </body>