Jawitz Properties CE Herschel Jawitz says the aim was to showcase the country to the world, which by all accounts has been a “fantastic success” — not only in terms of the soccer, stadiums and great hospitality but, equally important, in terms of SA’s infrastructure such as roads, airports and the Gautrain.

“It is unlikely that visitors arrived with tickets for the soccer and left with a title deed under their arms, but there is a good chance that many visitors will return to our shores in the future and that is when we may see them investing in leisure property.”

Mr Jawitz says the market continues to offer good value. “There is no doubt that the market has turned and that prices are rising in nominal terms — and in real terms as well, because of our low inflation rate.

“Prices still have some way to go to reach the levels seen at the height of the boom in 2007 and in that sense it remains a buyer’s market.”

But banks remain cautious about lending, making the recovery of property prices slower and the volume of sales lower than they should be. Bank lending continues to be one of the biggest challenges to the recovery of the property market.

Mr Jawitz cautions buyers who are still sitting on the sidelines that price growth lies ahead.

“So now is the time to be decisive and get into the market,” he says.

“Markets can and do change and, before you know it, sellers are going to start licking their lips!”

Despite high levels of indebtedness, the recovery in the overall market seems to be happening from the bottom up, with greater demand, sales volumes and price growth seen at the lower end.

“For buyers who can afford the repayments and have a deposit, now is as good a time as any to buy in terms of price and interest rates. Even if you are borrowing at prime, 10% in South African terms is not bad at all.”

Buyers at the lower and middle end are necessity buyers such as growing families and newlyweds and are more interested in immediate issues and less concerned about long-term issues such as immigration.

“At the upper and luxury end of the market, longer term issues, especially factors such as the economy and business confidence, play a bigger role in the buying decision,” Mr Jawitz says.

“If you are in a home worth R5m, upgrading to a bigger, more expensive home can probably wait. Stock market volatility and the global economy have a far greater impact at this end of the market.”

These factors, in addition to the strong rand, have also influenced foreign buying in SA.

Nevertheless, there is relatively good value for international buyers, especially in the coastal leisure market, which has been hardest hit over the past two years.

Areas such as Plettenberg Bay and Knysna, where demand is still sluggish, offer real opportunities, with a large choice of properties on the market.

Mr Jawitz is optimistic about the residential market going into next year.