Power outages shake property

South African property buyers said that power cuts have influenced their buying decisions in various ways, new data showed yesterday.

South African property buyers said that power cuts have influenced their buying decisions in various ways, new data showed yesterday.

The fourth quarter 2007 First National Bank property barometer has shown that 68percent of the people in the market said that power cuts had influenced their buying decisions, with 6percent saying they had shelved plans to buy, in order to see what happens.

Others said they would look for properties that have alternative energy supply (19percent), property in areas that have less load shedding (13percent) and smaller properties that require less electricity (2percent).

Some are worried about security and would prefer to buy in a complex (5percent) and a small number (3percent) is weighing emigration options.

"Eskom's effect could be positive for property - provided the damage control is good - otherwise a surge in emigration could result from negative sentiment," said John Loos, a property strategist at FNB.

Controlled power cuts that escalated in the past two weeks are the result of Eskom's inability to meet the power demand and have forced the government to admit that the blackouts are a national emergency. - I-Net Bridge

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