21 September 2009: The Western Cape is the best positioned of South Africa’s nine provinces to experience sustained growth in residential property market values over the next three to five years.

That is the view of Julian Reynolds, CEO of Durr Estates, who recently demonstrated his belief in the region's property market by recapitalising the 40-year old Cape real estate firm – at a time when the number of estate agencies in the country has halved and the trading conditions are extremely difficult.

A recently-published FNB Property Barometer reported that house prices in Cape Town are currently the weakest of the six major metros, partly due to seasonal factors, although properties located in close proximity of Table Mountain continue to hold up well, reflecting the scarcity of land.

"The FNB survey revealed that the percentage of properties sold at below asking price in the Cape metro rose from 80% in the first quarter to 91% in the second, however with prices expected to bottom out over the next few months, now is perhaps the best time to be looking to buy property," says Reynolds.
Despite the subdued property market nationally, Cape Town continues to reap awards and was recently voted the best city in the world by UK newspaper The Telegraph and the second best in the world by Travel & Leisure Magazine.

"Cape Town has a deserved reputation for being extremely well managed and consistently wins many accolades not only as a tourism hotspot but also locally having previously been voted as the cleanest city in South Africa," says Reynolds.

He says that the 2010 FIFA World Cup is also likely to benefit the the property industry in the Western Cape more than it will other provinces. Reynolds insists his decision to purchase Durr Estates was based on long term fundamentals, however, rather than the potential for short term gain that many in the industry expect the World Cup to be. "most people visiting the country will be here to watch the football and not to invest in property," says Reynolds, cautioning against expectations that the property market will see a sudden surge in activity. He notes however that that it provides a unique opportunity to showcase the country on a global scale.

"While the World Cup will highlight South Africa as a country, Cape Town is likely to be a huge beneficiary of the event. It has always proven popular with tourists and we may also see increased interest in the city and the surrounding suburbs."

"The World Cup will provide an instant boost to South Africa's coffers in terms of the tourism potential of attracting hundreds of thousands of soccer fans, but the real opportunity lies in the longer term benefits that the event has to offer," says Reynolds.