Weekly Property News
03 June 2011

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Statistics South Africa (Stats SA) - Economic growth in South Africa picked up more than expected in the first quarter, rising to 4.8%, compared with a revised quarterly figure of 4.5% in the fourth quarter of 2010. Real estate and business services contributed one percentage point to overall growth. The economy might be looking good but the real estate industry is still experiencing difficulties. Send your viewpoints to news@cyberprop.com

Headlines: A period of house price decline was the likely outcome of a possible phase of interest rate hikes or of slowing economic growth, or both, FNB said yesterday. John Loos, an FNB property strategist, said this was likely because the residential market had been unable to achieve respectable house price growth even after a huge stimulus of interest rate cuts. Loos said FNB's valuers continued to suggest weak demand relative to supply. High oil prices and higher consumer inflation could lead to interest rate hiking later this year, while a slowdown in economic growth was expected in the near term, he warned. No respite for property prices as cycle turns

Market news: "The FNB report," said Rawson, "shows that in both the fourth quarter of last year and the first quarter of this year, sectional title units sold faster and saw greater price rises than any other sector. Those units with less than two bedrooms did particularly well, showing a 6.6 percent price rise in the first quarter of this year. No other segment of the property market has equalled that kind of increase recently." Fastest growing in SA

The editor

In This Issue
Featured Property

Mpumalanga, Nelspruit
- Bed: 4 | Bath: 4
This lovely north facing family home is built on a very secure and exclusive 35ha estate...

Local News

No respite for property prices as cycle turns

A period of house price decline was the likely outcome of a possible phase of interest rate hikes or of slowing economic growth, or both, FNB said yesterday...

Fastest growing in SA

The chairman of Rawson Properties, Bill Rawson, has drawn the attention of buy-to-rent investors to the fact that the latest FNB property survey, compiled by the bank’s respected economist, John Loos, has shown that sectional title units have recently been far and away the best performers in the residential housing sector...

Rent or buy? Depends...

I've always had an extreme aversion to all forms of debt. As a result I've never owed anyone a cent in my life even though I'm in my late thirties. I've built up a large emergency fund to ensure I stay out of debt and I always save up before I buy something, even for a car (for which I have money saved up should I need to replace it)...

'Property buyers factor rate hikes into pricing'

Many buyers are anticipating an interest rate hike next year, says Auction Alliance CEO Rael Levitt, whose company has sold over three billion rand in commercial property this year alone....

The Big Five to avoid when selling

Staying emotionally detached is one of the biggest challenges for any home seller, but necessary if you don’t want to put buyers off and lose the sale...

Good opportunity on rental properties

With homeowners under pressure to meet their financial commitments and with little disposable income to invest in additional property, it is not surprising that the buy-to-let market has remained weak. However the rental market has remained strong, and this will underpin the predicted recovery in the buy-to-let market...

Find out where the buyer's cash is stashed

Tough times and credit restrictions have made “cash” buyers the flavour of the year in the residential property market, but before they sign offers made by such buyers, home sellers and their agents need to find out where the “cash” will actually be coming from...

Blacks dominate auctions

Black consumers have become the largest-profile buyers at auctions, according to Auction Alliance CEO Rael Levitt...

Flawed credit profiles

Flawed credit profiles, says Rob Lawrence, national manager of the bond origination company, Rawson Finance, are still the number one reason for bond applicants being turned away by the banks...

Property deals cannot be exited after offer is accepted

“It may come as a surprise to many that South African conveyancers time and again find themselves faced with buyers who do not appreciate how binding and non-negotiable an offer to purchase is once the seller has accepted it and any suspensive clauses (e.g. the sale of another home or the granting of a bond) have been complied with,” says Ulrik Strandvik, of the Cape Peninsula attorneys, Gunstons Attorneys...

Accurate valuation an essential part of the property selling process

If there is one factor on which estate agents can guarantee that they will encounter difficulties, says Tony Clarke, MD of Rawson Properties, it is that many sellers - “not, thank goodness, all” - will find it difficult to accept the market valuation with which they are presented...

Plan for the death of a spouse ahead of time

When the breadwinner of a family dies, all too often the surviving spouse will find herself (or himself) in a situation where, although the estate may have ample assets, there is little or no ready cash available for day to day expenses or because the deceased estate is frozen until the Master of the High Court has approved the allocation of the funds in terms of the will...

Green Home Trends

More and more people the world over are acting on the awareness that the planet’s resources need to be preserved and protected more so than ever before, a philosophy which has spilled over into the property arena...

How to clean tile grout

Bathroom grout is often overlooked during cleaning time. A quick cleaning wipe-down does not fully clean grout because the grout sits lower than the surrounding tile...

Stumbelbloc cuts building times

Walls for a 42m² house erected in six hours.

Claims by Stumbelbloc, the manufacturers of interlocking concrete blocks which require minimal bonding material, that their system can cut building times by up to 50% were verified recently when a team of one bricklayer foreman, two handymen and four labourers completed the blockwork of a two bedroom 42m² cottage in six hours...

Live like the upper-class

Kabous le Roux reviews the Cape Royale Luxury Hotel and Residence, focussing mainly on the ownership scheme whereby buying into five-star luxury becomes an option for many who would never have dreamt it possible…

It pays to appoint a managing agent

Managing agents have time and again been able to rescue sectional title schemes when their arrears have got out of hand and the scheme is beginning to deteriorate as a result of poor maintenance, says Michael Bauer...

Focus On

Nelspruit, Mpumalanga, South Africa

Nelspruit, the capital of Mpumalanga, lies in the fertile valley of the Crocodile River about 330 kilometres east of Johannesburg...

>> Properties in Mpumalanga
>> Properties in Nelspruit

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In the Area

The areas we are going to take a closer look at this week are;

  • Cape
  • Krugersdorp
  • Mbombela
In the area 1 - Cape

Those property analysts who are looking for signs of an upturn in the Cape residential market will probably have to wait another six to twelve months, says Annette Evans, Manager of the Western Cape Institute of Estate Agents’ PropStats (property statistics) Division...

In the area 2 - Krugersdorp

Families head for homes in Krugersdorp

The residential property market in Krugersdorp is enjoying a revival as families find good value and space in its traditional suburban homes set in large gardens...

In the area 3 - Mbombela

Great returns on offer in Mbombela’s hot rental market

Ongoing commercial and industrial development in the bustling city of Mbombela has created a shortage of quality homes for sale and to let – and excellent opportunities for residential property investors...

News from from Michael Olden, MD of Olden & Associates Town Planners

Zoning requirements for working from home

With the economy as it has been for the past few years, many more people have turned to working for themselves and running their businesses from home...

To the editor

Share your comments with us by sending it to news@cyberprop.com

Local News Continue

Trustees' prime responsibility is to ensure health of scheme

Sectional title body corporate members taking up their positions as trustees in their schemes (perhaps for the first time) have to accept that they have fiduciary responsibilities to their fellow members and the sectional title scheme as a whole...

Restructure insurance policies to save money

At this time of the year the trustees of many sectional title bodies corporate are looking for ways of limiting the annual levy increases which on most schemes are inevitable...

RE/MAX One Hundred gives medical service to new homeowners

Fourways-based real estate company, RE/MAX One Hundred, is giving away 12-month subscriptions to RSS Medical to the first 10 new homeowners who purchase property through the company in June...

Equestrian living in Mooikloof

Living on an equestrian estate is for anyone who has dreamed of a secure and tranquil lifestyle where horses and children have the right of way...

Opening of 62ha mixed use Milnerton development

Montague Park, a new mixed-use business park currently under development in the Milnerton area of Cape Town, is fast attracting several national ‘big box’ retail chains and modern distribution centres, due to its prime location, eco-friendly focus, security and overall aesthetic appeal...

GBCSA: Building a Better World

Montague Park, a new mixed-use business park currently under development in the Milnerton area of Cape Town, is fast attracting several national ‘big box’ retail chains and modern distribution centres, due to its prime location, eco-friendly focus, security and overall aesthetic appeal...

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CyberProp Property Count: 03/06/2011

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Properties for Sale: 141,797
Properties to Rent: 10,146