Cape Town - The housing market appears to be ending the year "with a fizzle", auctioneers Auction Alliance said in a review released on Wednesday.
The company said its strong year-end results reflected a property market characterised by lacklustre buyer demand but strong growth in distressed sales.
"A subdued housing market suggests that the year is ending with a fizzle, leaving many investors questioning whether the market will deteriorate further in 2011," it said.
Historically low interest rates stimulated entry level residential homes and tenants in commercial property, but the broader market was "weak all year, particularly at the top end".
Pre-2010 Fifa World Cup property optimism was overtaken by the realities of a lacklustre global economy, constrained bank funding and a stubborn local recovery.
South Africa was now following most North Atlantic countries, where the negligible costs of borrowing had simply not kickstarted the property market.
"The bottom line is that next year we won't have the World Cup to boost infrastructural spend, tourism, mid-year retail and most importantly investor sentiment," said Auction Alliance chief executive Rael Levitt.
"It appears as if real estate is set to weaken further in 2011."
Auction Alliance ended the year 22% ahead of budget, with R5.2bn of assets sold at auctions over the year.
That not too bad yet, seen a couple new flats with ±60m² for close to R1mil :wtf:
