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Western Cape Realestate Investment

By Colin James


When talking of property for sale on the Cape West Coast, Harcourts Chief Executive Officer Richard Gray announces that development of the commercial development zone (IDZ) at Saldanha will have a good effect for the local residential market.

"The business stimulus from the investment in energy will have a good effect on property for sale right across the Western Cape, and for Cape Town in particular", says Gray. With the mining and energy investment caused by the economic development zone, Gray asserts that finally the regions economics will be underpinned by energy, and this could attract a whole new set of business to the region, each one of them employing staff who will be needing to buy property for sale.

"For the next 20 years or so it can be anticipated that the IDZ will be a massive industrial driver, and the resulting prices received for property for sale will reflect the clamor for housing from the energy sector. " Gray continues, "Harcourts is fielding enquiries from potential investors who see that property for sale in the Western Cape is an expansion industry due to a lack in residential housing stock. Stockholders are asking Harcourts, where they can buy property for redevelopment, many investors are looking at property for sale with a view to a buy to let investment opportunity. "

When asked about the kind of housing stock that may most likely be in demand, Gray claims that the kick off point for many investors looks higher density housing units, "In expectation of young, skilled workers seeking accommodation, backers are trying to find development opportunities where there is property for sale within a commutable distance from industry locations. "

Gray says the banks are on-side for investors and first home purchasers on the Cape West Coast, "In the last few months the banks have eased their lending conditions when it comes to property for sale where a purchaser has a great credit history, and also by allowing lending to a higher percentage of a property value. "

The first result on property for sale in Western Cape where banks have eased their lending terms has been an increase of activity in medium priced houses, Gray says that Harcourts has seen a trend where existing home owners are upgrading to a bigger or better property. "In the short term, the effect on residential property for sale on the Cape West Coast has been a market correction, whereby property owners judge the time is correct to upgrade their home, however we have not seen much activity at the upper end of the market where activity around property for sale higher than R20m has remained stable. ".




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