Regular reports in the property press about the fact that residential and commercial buyers are these days prepared to pay a 20 to 30% premium for a property provided it is in a security estate '“ and that for some this is now the only type of property that they will consider '“ have led to an exponential growth in this market, despite the downturn of the last three years.
Drawing attention to this, Tony Clarke, MD of Rawson Properties, said that the latest Lightstone Review reveals that since 2003 the growth in the estate market has been almost 350%.
'As one would expect,' said Clarke, 'the really rapid rise took place between 2003 and 2007 (during which time there was a 300% growth) '“ but it is interesting to see that in 2008 to 2011 a further 48% has been achieved'
This growth, said Clarke, is roughly 200% greater than that of freehold units.
The Lightstone review, he says, also shows that in 2010 and 2011, growth in mid value and high value homes dropped from a 2007 peak of almost 50 000 per annum to between 10 000 and 16 000 (depending on the category). In 2011 growth in affordable and township property in fact exceeded that in the highest priced property.
'What is really disappointing,' said Clarke, 'is that affordable and township property, although now doing better than other categories was also cut back heavily by the recession, i.e. by a lack of bond finance and, in the last four months, by Deeds Office delays. At this level housing is so badly needed that the situation is close to a crisis'
Repeating what many leading agency spokespeople have said, Clarke added that with house prices currently inflating very slowly from a low point of 35% below the norm in 2005, market prices remain exceptionally good value.
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
