Berry Everitt, managing director of the Chas Everitt International Property Group believes investors are too pre-occupied with what is happening with global prices and ignoring opportunities.
Inflation and interest rates have climbed steadily since 2006 and like most countries South Africa is facing increased fuel and food prices. So for those who have the funds there are opportunities in the buy to let market, he claims.
'Demand for rental properties is bringing savvy investors back into the market and as that demand also grows it will also help to absorb inventory and start creating the conditions for prices to start to rise once again,' predicted Mr Everitt.
'This is not a time for scaremongering about the current state of the market, it is part of the perpetual economic cycle, in which the prices of all commodities, including property, go up, go down and then go up again. Instead it is a time to be looking at the bigger picture and finding ways to maximize the opportunities,' he added.
He points out that homeowners who bought their properties five years ago and held them today have an asset that is worth at least 100% more than they paid for it.
There is plenty of demand. A recent survey showed that more than 50% of South Africans rank owning their own home as their most important life goal.
So, he argues, it is a good time to sell. 'There is actually a huge market for homes that are for sale, provided they are pitched at the right price. From a seller's point of view, South Africa is a great place to be, because it has one of the few real estate markets in the world where there are literally millions of potential buyers champing at the bit to become homeowners,' he said.
His optimism is backed up by the First National Bank of South Africa. A recent report confirmed the rental market is thriving.
