See More

Golf estates under pressure

May 23 2010 12:28 Sake24.com reporter

Related Articles

House prices up, but doubts remain

Malema rants hurt house prices

House prices still on the up

Home prices surprise experts

Mixed fortunes for house prices

House prices looking up in 2010

Johannesburg - Golf estates in South Africa are without doubt under tremendous pressure – as they are in the rest of the world.

Auction Alliance CEO Rael Levitt has said it will take at least two years for the golf-estate market to recover. In some parts of the country it will take even longer.
South African golf developments, he said, compete in the global environment and are therefore part of the global downturn in these types of developments in places like the United States, Spain and Dubai.

South Africa's golf-estate problems derive not only from the high maintenance costs but, as in Spain, from massive oversupply. For many homeowners struggling to pay their mortgage loans the luxury secondary-housing market is unattractive and unnecessary.

He said, however, golf estates that people occupy on a permanent basis have been unaffected by the global downturn.

They are flourishing and should not be confused with estates that only comprise leisure facilities.

It will take a long time to mop up the oversupply but, when the market recovers, he said golf estates will again demonstrate their former strong growth trend.

One should not lose sight of the fact that many golf estates that seem to be doing well today were also under pressure at one time.

Fancourt, which is currently regarded as an exemplary and successful golf estate, was part of the Masterbond collapse and was saved by German businessmen Hasso Plattner.

Levitt said Auction Alliance has also auctioned other golf estates, such as the Riviera Golf Estate in Vereeniging, for liquidators.
These properties were snapped up by opportunistic investors who saw value in them. The same will happen now. Brave investors will buy the 20 or so golf estates currently under pressure at bargain-basement prices and enjoy their fruits in the medium term.

 - Sake24

golf estates  |  property prices


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Add your comment
Comment 0 characters remaining

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Government’s decision to withhold payment to municipalities in debt to Eskom is:

Previous results · Suggest a vote