"As we count down to the most historic event this country is likely to see since the inauguration of Nelson Mandela, we realised that the fact that 55 000 fans still have nowhere to stay presented a business opportunity worth an estimated R400m for the property market," said Seeff Properties chairman Samuel Seeff.
He said few realised the extent of the growing accommodation crisis. "For the first time, FIFA has had to sign up non-graded accommodation for its officials because of the shortfall of accommodation in South Africa. MATCH, which accommodates VIP's, sponsors and the media, is 20,000 beds short for the 30-day period."
Bailey said this was without taking into consideration the needs of the ordinary fan. According to SA Tourism, there will be a shortfall of around 65,000 beds in Gauteng on peak nights and also shortfalls in smaller cities such as Port Elizabeth (15,000 beds), Polokwane (5,000), Rustenburg (5,000), Bloemfontein (14,000) and Nelspruit (13,000).
The good news for the property sector, which has up until now been left reeling by the ongoing financial meltdown, is that it could scoop up as much as half of the estimated R1bn that is expected to be spent on accommodation across the country.
Bailey said this was no exaggeration as South Africa could expect between 250,000 and 400,000 visitors - at least ten times the number during the Rugby World Cup. "In terms of value, if we take 65,000 beds in Gauteng and assume that fans will be here for a minimum of one week, we get to 455,000 bed nights. At R1k per night, that's R455m that will be spent in Gauteng alone!"
Seeff said homes close to stadiums in good condition were most likely to be snapped up early by fans. Because educational institutions are closing during the event, those with homes in prime positions could consider moving out or even taking a holiday and letting their properties during the event.
"The actual amount you would receive varies from property to property. However, we believe that you could charge a minimum of double the monthly rental that you would ordinarily receive. So, if your house could rent today for R20k per month, we reckon you could get a minimum R40k (or R10 000 per week) – and that that would still be cheap for visitors who pay a lot more for accommodation in their own countries!" said Seeff.
Readers' Comments
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Typical Seeff – encouraging people to charge double the usual going rate.
R1k per bed night! What a rip-off. Not everybody wants or needs to stay in Bishopscourt or Khyber Rock, Mr Seeff.
South Africans as a nation are hospitable people. Charging double is not hospitable and will discourage tourists from ever coming back. - Bruce Gatland
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