7 July 2005
The property boom is a worldwide phenomenon and according to The Economist - "the biggest bubble in history", and is therefore unsustainable. In some of the markets, such as the United Kingdom and Australia price growth rates are already slowing down. Out of the eleven countries on the graph below, South Africa comes out top with a growth rate of 244 percent in the value of property since 1997. Whatever the reasons for justifying it - pent up demand, healthy consumer fundamentals, low interest rates, gains in disposable income on the back of accelerating economic growth and cuts in income tax, many people are starting to take a sober view.
For instance in our recent survey a quarter of respondents believe the property boom is over already, while a similar number don't see it lasting longer than a year.
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