"The South African property boom started towards the end of 1999 when the drop in interest rates served as catalyst for renewed spend in the property market. We are currently in a boom cycle where interest rates have declined to arguably the lowest rates in 20 years.

International interest was sparked particularly post the September 11 attacks as South Africa was perceived to be a safer destination. As they say - that was then and this is now. The increase in property prices and strength of the rand on the currency market has meant that South Africa is no longer as attractive to international buyers as it was in 2002.

Although foreign interest has remained, the impact of the emerging black elite and middle class have been even more significant in the past 18 months. As one of the largest real estate groups in Southern Africa, we have been able to monitor developments across the country and have found that in certain areas an average of one in two properties is purchased by one of these two groups.

Black empowerment is working and it has expanded the number of black middle class income families. Looking into the future, the black elite and middle class will become even more important in the market place. I strongly believe that they will be underpinning the property market in the future and form a more sustainable base than the foreign investor who is more sensitive to world events.