Property barometer – Holiday towns

FNB – South Africa

Price stability appears to have returned to holiday town residential markets after a significant prior decline, but these markets still underperform the primary residence-drive metros.  Our expectations for holiday home buying to be more constrained than primary residential buying are not only about current household sector financial constraints, including high levels of indebtedness. It is also about the ongoing cost increases relating to owning and running a home, notably in the form of strongly rising municipal rates and tariffs.  Such running cost affordability deterioration may not appear too severe, but could be expected to impact more negatively on non-essential property buying than on primary residential buying.

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Property_Barometer_ Holiday Towns_Aug2013