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Property Investments have Proved their Worth in the Recent Worth in the Recent Downturn, Says Western Cape Institure of Estate Agents Chairman. One thing from which estate agents can take heart in these troubled recessionary times is that their sector has performed considerably better than most others, Ivan Neethling, Chairman of the Western Cape Institute of Estate Agents, told certain of its members recently. “Those who had their money in property,” said Neethling, “have usually fared far better than those who were in JSE shares or, indeed, had invested in certain sectors such as travel or the motor related industry. We have seen values in property drop 10 to 20% but at one stage the JSE was 60% down on its 2007 highs and for a long time has been 40% down. What is more, those whose property is rent producing have usually been able to show fairly satisfactory results: the listed property companies are riding out this recession better than most – even though rental increases have been minimal.” Neethling said that he had come across some cases where the owners of several properties on which they were paying bonds had struggled to maintain payments – but even they are now likely to find themselves on an easier wicket as a result of further interest rate drops. At the moment, said Neethling, guesthouses are the flavour of the month because buyers, anticipating a massive influx of tens of thousands of visitors to the Western Cape over the 2010 World Cup period, are expecting good returns on this sector. “We have to warn buyers, however, that the post-World Cup period might be a fairly lean one for them,” said Neethling.

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