Apr 27 2008
Property Market Prices
According to The Economist: ‘Fluctuations in property prices can arise not only owing to cyclical movements in economic fundamentals, interest rates and the risk premium, but also as a result of the intrinsic characteristics of the property market itself.’
An illustration of some of the micro and macro economic factors that cause movement in a property market are:
Supply will be influenced by:- Changes in law, Tax incentives
Demand will be influenced by:- GDP (growth in income), Tax (cost of ownership), Changes in law, Availability of finance
Supply will be influenced by:- Building restrictions, Land prices, Business activity
Demand will be influenced by:- Population growth and immigration, Tourism, Development of infrastructure, Employment levels.
With particular reference to the property market, this helps clarify the benefit of hosting of the 2010 FIFA World Cup for South Africa; as a whole and for the hosting cities.