The perceived property bubble in South Africa is not about to burst, if current world trends are anything to go by, says Denise Dogon of Dogon Group Properties.
Dogon has just returned from London and New York, where property prices have risen steadily for seven years.
"While it is reported every year that the market in these cities is overheated, there are no indicators that prices are going down - and the same factors influence sales in South Africa," she says.
The principals of top overseas property companies who she met with had said that the market had not gone down, although in some areas it had reached a plateau.
"People in all the major cities around the world have recognised that real estate in prime areas, whether it is a tiny studio apartment or a top-end penthouse, is the best investment," says Dogon.
"Prime areas will always be in demand and the price of this limited land will go up."
In cities like Cape Town and Johannesburg a developing infrastructure and an influx of people pushes up the demand, she says.
Commenting on the influence of foreign buyers on the local market and the proposal to introduce a 99-year leasehold, Dogon's view is that the government research currently being done will show that foreign buying across the board probably accounts for only 15 to 20% of sales per annum. She says the government will hopefully realise that the job creation opportunities and revenue that foreigners generate are far more beneficial to the country than to stop them from buying here.
Dogon was impressed by the professionalism and product knowledge of estate agents in New York and London, where they are far more reliant on technology and the service is more internet-based.
"In New York every agent has a laptop or a handheld device such as Palm Pilot, via which property listings are fed to them all the time," she says. "Research is also done into all listings and the good agents have all relevant information at hand: they know the size of the rooms and are aware of any problems or restrictions relating to each property."
Dogon, whose company pioneered the use of plasma screens in the local property industry, believes that with the right technology it is possible to enhance the professionalism of local agents tremendously.
She aims to develop the IT side of her business, to ensure that every agent is completely computer literate and is brought in line with their overseas counterparts.
"The buyers of tomorrow will all operate with laptop or handheld computers," she says. "In fact, that trend has already arrived, with many buyers asking us to e-mail them details of properties."
Dogon says technology is also opening doors to new value-added services. In line with another overseas trend, the rental division of DG Rentals has recently decorated a new Clifton apartment, right down to the cutlery, for the buyers, an expatriate South African couple who live in Dublin. All negotiations were carried out by e-mail.
Suzi Woolliscroft of DG Rentals carried out the service. A former tutor in interior decorating with a distance learning school, Woolliscroft has also bought and redecorated several properties for resale in her private capacity.
The Clifton buyers gave her a budget to work with and she submitted a proposal for the furnishing of the apartment. Photographs of all proposed furniture, paint and fabric colour samples and so on were e-mailed to the clients.
"The buyers, who have just been in Cape Town on holiday for a week, were delighted with the end result, which was achieved with little effort on their part," says Dogon.
The entire decorating service was completed without Woolliscroft once speaking to the clients on the phone or in person.
Contact Dogon Group Properties on 021 433 2580.
• This article was originally published on page 6 of The Cape Argus on September 05, 2004
Published on the web by Business Report on September 6, 2004 |
