South African Property Prices Driven By Global Recession

The property market in South Africa is driven by a number of different factors: In 2011, Rael Levitt spoke about the challenges facing the industry and gave insight into the future of the market with focus on the challenges facing the property auction market. In his interview with MoneyWeb, Levitt noted that Auction Alliance closed the year with sales of R6 billion, but that there had been a steep drop in demand for certain types of properties in the country.

Levitt explained the current state of the South African market as intrinsically linked to the recession on a global scale. High-end property prices suffered even with the slight upturn in the market in 2010 and with demand down, the prices of residential properties in affluent areas would not recover for at least two years. Rael Levitt did predict that commercial property would experience an increase based on demand and growth in the economy.

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