When talking of property for sale on the Cape West Coast, Harcourts Managing Director Richard Gray announces that development of the business development sector (IDZ) at Saldanha will have a constructive effect for the local residential market.
"The industrial stimulus from the investment in energy will have a positive effect on property for sale right across the Western Cape, and for Cape Town in particular", asserts Gray. With the mining and energy investment springing from the commercial development zone, Gray says that ultimately the regions economics will be underpinned by energy, and this may attract a whole new set of business to the region, each one of them employing staff who will be wanting to buy property for sale.
"For the following 20 years or so it can be expected that the IDZ will be a massive business driver, and the resulting prices received for property for sale will reflect the clamor for housing from the energy sector. " Gray continues, "Harcourts is fielding enquiries from potential speculators who see that property for sale in the Western Cape is an expansion industry thanks to a lack in residential housing stock. Stockholders are asking Harcourts, where they can buy property for redevelopment, many financiers are having a look at property for sale with a view to a BTL investment opportunity. "
When questioned about the type of housing stock that may potentially be in demand, Gray says the starting point for many backers is higher density housing units, "In expectation of young, skilled workers seeking accommodation, backers are trying to find development opportunities where there is property for sale within a commutable distance from industry locations. "
Gray says the banks are on-side for speculators and first house purchasers on the Cape West Coast, "In the last few months the banks have eased their lending conditions when it comes to property for sale where a customer has a great credit history, and also by allowing lending to a higher share of a property value. "
The initial impact on property for sale in Western Cape where banks have eased their lending terms has been an increase of activity in medium priced houses, Gray says that Harcourts has seen a trend where existing home owners are upgrading to a bigger or better property. "In the short term, the result on residential property for sale on the Cape West Coast has been a market correction, whereby home owners judge the time is correct to upgrade their home, however we have not seen much activity at the higher end of the market where activity around property for sale higher than R20m has remained stable. ".