South African economist has predicted an investment boom and a growing property market for South Africa as falling oil prices and interest rates.

ABSA banking senior economist Chris Hart expected the dollar to weaken as United States economic growth slowed, causing oil prices to fall and yielding a lower local inflation rate.

"This is good news for South Africa as it will allow further easing in the interest rates," Hart said in a statement.

He said many factors indicated that investment conditions in South Africa were the best in decades.

"The South African economy is on the verge of an investment flood," he added.

The country was about to enter a phase of sustained high economic growth coupled with low inflation.

The recent Barclays/ABSA deal would encourage other entities to consider similar ventures, resulting in huge investment in the financial sector.

There was also much scope for infrastructure development with the imminent arrival of a second landline operator and South Africa hosting the 2010 Soccer World Cup.

The economist said "these factors, together with the strong worldwide demand for commodities, will attract other multi- nationals to the region and further boost growth and development."

On the property front, Hart differed from others who felt the bubble was about to burst, adding "the property party is over, but the after party is about to start."

High economic growth coupled with low inflation would continue supporting the property boom for at least five more years, although the growth in property prices would slow down, he predicted.

There was a continuing demand for property in South Africa's transforming economy. Personal incomes would continue to rise due to low inflation and falling interest rates.

Hart believed South Africa offered some of the best investment opportunities in the world.

"In this market, it is definitely possible for even a small investor earning only a salary to achieve financial independence," he said.

"So long as he does his homework, tempers his aspirations for fancy cars, and realizes investing is a long-term process," he added.

Source: Xinhua