South Africans who banked on the World Cup to boost their falling property market have been disappointed, as the global downturn continues to keep foreign buyers away.
In Cape Town, which is hosting several matches, the decline is partly due to a 430% increase in property prices in prime areas in the last ten years.
In some areas property prices have dropped by 10-20%. Prime areas in the southern suburbs tend to fare a little better than those in the northern suburbs, which are dependent on mortgage rates. However, in the Atlantic Seaboard area where Cape Town’s most expensive properties are offered, prices are rising again as there are no more lands left to build on.