However, there are notable exceptions to that rule, such as Cape St. Francis.
Overall, the South African property market has shown some signs of slowing down. Much of this uncertainty comes from the global sub prime credit fall out. With so many overseas buyers taking a step back, several areas are beginning to notice the effects. The residential markets seems to be the heaviest hit. This is causing some trusts to reevaluate their current position particularly those that have a majority of their portfolios listed with residential properties as they may experience setbacks as 2008 progresses.
For the most part, the South African residential property market has been a buyer's market. Most areas of the state just do not have the demand that Asian and European markets have. One area, though, is going against the trend and is capable of selling properties immediately when priced right. Cape St. Francis is one of the few areas in South Africa that enjoys a seller's market. Market turnover for 2007 was double that of 2006. It went from R35 million to R80 million.
Many buyers in Cape St Francis feel that this suburb is easily a better choice then St Francis Bay itself.
For many home buyers, there is the concern of constant or over development. Due to the the way Cape St Francis was constructed, there is no fear of overdevelopment. This leads many to feel that a home bought in the area will retain its value and even increase because in demand. Cape St. Francis' most popular units are those facing the beach. Most of the front row properties here are in need of major renovation or demolition. The fact that buyers are willing to invest time and money into these properties demonstrates the nature of the market here. Over the last 10 years, most of the front row properties have more then doubled in value.
