In 2008 the residential property market outperformed the JSE listed commercial property funds. Even though we are experiencing the worst slump in 16 years, real estate is still one of the most “safe” investment vehicles.
Latest figures show that the share prices of the 22 property stocks that make up the JSE’s real estate sector fell by 15%. Others have fallen more than 30%.
The latest figures from ABSA show the the residential market is still growing, even though it is small. FNB also shows growth in the residential property market.
Some experts believe that we do need at least a 400 basis point interest rate drop before we will see an improvement in property value growth.
I guess we will have to wait and see.
Yes, I agree. Only time will tell, but I cannot help to think are the economist’s out there ever right.
Go with your own gut felling, but do your homework as well. If the figure make sense, go for it.