SOMERSET WEST PROPERTIES
Ownership of immovable property have evolved significantly in South Africa – no longer is property ownership confined to providing accommodation but the value thereof from an investment perspective have been realised even to the extent that some property owners had become property speculators during the so-called property boom.
The global recession and the implementation of the National Credit Act locally had a significant effect on the property market – not that South African property had lost its investment value but the stricter lending criteria and the general unavailability of credit impacted on the property market as a whole.
The growth in property values flattened in South Africa albeit not to the extent it had been elsewhere in the world. However, this stagnation of growth in property values are normally calculated and viewed on a national basis. Despite the factors mentioned above, the Somerset West annual sales indicated positive growth throughout the decade with the exception of the 2008/2009 financial year where the growth had been 3% negative. What is however of importance from an investment perspective is that the property values in the Somerset West area continued to climb positively throughout the recession.
The effect of the global recession and the associated local factors had not been as significant in Somerset West as had been the case elsewhere in South Africa – Somerset West continues to give safe, secure and consistent returns on owners' investment.
There are various factors contributing to the success and sustainability of the Somerset West property market, inter alia the following:
There are a wide range of properties to choose from in the Somerset West area with prices varying between R1,2 million and R40 million. The South African property market, in general, has experienced a revival from the beginning of 2011 and the interest in property, specifically in the Somerset West area, have grown significantly in the last few months.
The authors have both been involved in the Somerset West property industry for more than 11 years – Loretta, as the manager of Seeff Properties Somerset West and Christoff as an attorney practicing property law with Jooste Heswick Inc Attorneys. Perspective purchasers and sellers are welcome to contact them for any of their property related questions.