WHAT effect is the war in Iraq having on the Cape property market? So far the only effect is a stronger preference for Cape property, particularly if compared to properties in Europe and the United Kingdom, says chairman of the Rawson Property Group Bill Rawson.

"There is concern that even after the war, certain parts of Europe may become the scene of ongoing conflict between the two opposing factions in this war. "By contrast, the Cape is seen as being safely away from the conflict zone, a place where, despite petty crime, people can live peacefully.

This feeling that SA is a safe haven has been bolstered by our government's opposition to America's action." Sales in his company were 32% up on last year, and sales in 2002 were significantly higher than those of 2001. He expected sales have continued to rise.

"There are property watchers who cannot believe that the current bull run in all South African residential property can continue. I, however, can see no reason why it should slow down or tail off. The products on offer are excellent, the supporting infrastructure is good, the concomitant lifestyle one of the best in the world and demand remains strong. Even if interest rates drop 1% later this year, which I think unlikely, I am convinced that will not cause a drop in prices as it did last time." Asked if Cape developers were exploiting the current situation and bringing about exorbitant price rises, Rawson said: "Absolutely not. There may be some high mark-ups in the ultra luxurious market but in general our prices remain competitive. Some Gauteng developers told me recently that they had put off working in the Cape because their Gauteng profit margins are 10 to 15% higher than ours."