Denise Dogon, CEO Dogon Group Properties, perspective of the Property Sector, Investment and Trade Opportunities within the Western Cape

Question 1: Philosophy Business Strategy and Future Growth Strategy

Our strategy is to remain focussed on our niche market which is high value properties and to further establish our brand and the leading luxury property specialists along the Atlantic Seaboard in Cape Town. We continue to show the world that the quality of our real estate is comparable to the best beach front property in the world. With the rest of the world in financial turmoil and considering the reality that every region has its risks, we are looking to spread the word about our wonderful world-class real estate and our unmatched lifestyle in Cape Town. We continue to attract high income groups that are drawn by the affordability of our lifestyle and who, after reviewing their international options, choose to take advantage of the fact that we are at least a third cheaper than equivalent properties in the South of France for example, yet offer an exceptional quality of life.

Question 2: Comments on Current Trends – Outlook on the Future

Considering the general decline in property prices internationally, we are fortunate that property along the naturally beautiful Atlantic Seaboard has held its value exceptionally well and we are still witnessing year-on-year growth. Strong demand has been sustained due to a trend of relocation or further investment from up-country South Africans – with a substantial number of Johannesburg and Durban nationals purchasing prime residential real estate in Cape Town. Furthermore, we have seen a significant number of South African emigrants who are electing to return to South Africa or at least to re-invest in South Africa with the intention of enjoying time in this country either now or in the future.

Having said this, there have been occasional cases of distressed sellers where we have witnessed astute buyers securing prime property at discount prices. Securing rare waterfront or mountainside properties at bargain prices is attracting savvy high net worth investors and lifestyle seekers.

As far as the rest of the African continent is concerned as well as compared to other emerging countries, South Africa has a very well developed infrastructure and many first world - if not world leading - contructions, systems and technology developments.

Question 3: BEE

BEE has gone through many stages and growing pains and the BEE model is reaching a much more mature level with more realistic economic considerations. The motivation behind BEE implementation has developed from a purely socia-political drive to include more realisticly effective and sustainable policies.

Question 4: World Cup 2010

The world cup 2010 has brought South Africa huge exposure which is likely to have a very favourable impact on the property market. Cape Town has a history of winning the hearts and minds of tourists and visitors which has resulted in many international buyers purchasing property in the Mother City over the years and with 2010 bringing South Africa into the forefront and exposing this vastly developed and beautiful country to billions of people it is likely that many will be enticed to revisit or invest here. This is undoubtedly going to have an exceptionally positive impact on the property market along the Atlantic Seaboard which has always been considered the foremost South African destination for international buyers.

Question 5: Infrastructure and Energy

The South African infrastructure is well-developed and comparatively sophisticated compared to the rest of the African continent and other emerging countries. We have experienced electricity energy problems in the recent past which have been addressed by the South African government and Eskom and it appears that the worst of the issues have been tackled and that Eskom is back on track to become the world-class provider of electricity that it once was.

South Africa has always been able to boast about its particularly good roads and it continues to improve its substantial road infrastructure. In the lead-up to the World Cup 2010 we have seen an unprecedented investment in substantial and highly sophisticated infrastructure throughout South Africa and many of our cities are suddenly looking and functioning better than they ever have before. We expect significant improvement in effeciency related to transport and we are even looking forward to an over-capacity in certain areas post the World Cup. This is expected to have a positive effect on private business and the economy in general.

Question 6: Education and Training

This sector certainly needs addressing as a matter of urgency and as the government realises this and focusses its best human and economic resources here, the potential of South Africa will improve dramatically.

Quesiton 7: Safety and Security

The crime in South Africa is a definite problem. The government is devoting increased resources and working hard at the problem of crime. In my opinion, even more effective action needs to take place urgently.

Question 8: UK and South Africa

The relationship between the UK and South Africa has a long history and very strong links over many years which continue to grow. South Africa’s business practices and culture have been strongly influenced by the UK and there exists a special bond between these two countries. South Africa’s main business language is English, we are in the same time zone and there are many daily flights between the UK and South Africa. This all allows for easy commuting and practicle communication which facilitate convenient business and holiday travel between the two countries.

Yours sincerely,
Denise Dogon / CEO