So what’s the game plan?
The Nedbank Property Association Bi-Annual Seminar was held on Wednesday the 8th October 2008 at the Midrand Conference Centre.
Deon Lessing (pictured), marketing executive of the PA Group, welcomed property professionals to the seminar by saying: “The Property Association strives to be a custodianand spokesmen for the property industry. We aim to develop the industry and further enhance the image of real estate agents in South Africa, by assisting them through various initiatives to ultimately achieve the pinnacle of success.”
Nedbank’s senior economist, Nicky Weimer and Ian Fife, property editor of Financial Mail, opened the seminar with an interesting discussion on the current local and global economic climate and how it affects the property market. The big question of course was when they expect the economy to recover.
“There are lags between interest rate hikes and the effect of consumer spending and although the darkest point is behind us, we can expect difficult months ahead. Oil and food prices have come down, but the weaker rand to some extent has cancelled out these price cuts,” says Weimer. “Locally, interest rates have probably peaked. Depending on the economic environment, I forecast the first interest rate cut of 50 basis points to be in April and by the end of 2009, the interest rate should be 200 basis points lower,” Weimer adds.
One of the highlights of the seminar was an enlightening talk by Gary Bailey on the business opportunities of the 2010 FIFA World Cup. With twenty times more spectatorship than any other event, it is not just about soccer - it is the biggest business event to take place on African soil.
“The World Cup is an opportunity for South Africa to re-brand the world’s perception of our country – or not! In Germany, 206 out of 249 countries participated in the 2006 world cup. South Africa will be visited by over 400 000 foreigners, of which 25 000 will be media. R500-billion has been invested in this event to ensure we have the necessary infrastructure. We must be positive and not judge too quickly - this world cup will be successful,” says Bailey.
With regard to property, the upgrade of infrastructure has increased the property value in certain areas. The impressive Green Point Stadium in Cape Town, has led to the greatest growth in property pricing countrywide. With 40 new police stations being built and over R10-billion invested in upgrading policing resources, areas will also be safer for property owners in South Africa.
Although the tournament only lasts four weeks, the South African economy will benefit long after the final whistle has blown.
