Weekly Property News
Friday, 03 September, 2010

Dear Reader

Ms G Marcus Governor of the Monetary Policy Committee is going to have her hands full this month when the committee meets later this month. The meeting is likely to allow a 0,5% drop in the bank interest rate. But is this enough? Not according to the property guru’s. According to Bill Rawson, Chairman of Rawson Properties there should be a cut of at least 1% to allow significant change in residential property sales. What is you view on this? Send us your comments to news@cyberprop.com

Headlines: Reading through the 2010 Emerging Trends in Real Estate report, it is interesting to note just how globalised the modern property market has become. “In the past, local trends and influences were the major determining factors in the property market of a specific region, but as the world - and its property markets - become increasingly globalised, the issues and investment advice pertinent to the global market become more relevant to localised markets such as ours,” says Peter Gilmour, Chairman of RE/MAX of Southern Africa. Global real estate trends are relevant to SA

Market news: The FNB House Price Index continued its trend of slowing year-on-year price growth, from a July revised rate of 10.1 percent to an August rate of 7.2 percent. While the declining price growth trend was expected, the pace of the decline has been slightly faster than our expectations. Base effects do play a role, with the base in the second half of 2009 having begun to rise once more. However, the weakening also has much to do with a slowing global and domestic economy as well as a lack of further interest rate stimulus over the past 12 months (only one further rate cut in March 2010). The positive impact of the five percentage points’ worth of rate cuts from December 2008 to August 2009 has thus started to wear thin. Prices to fall again?

The editor

In This Issue
Featured Property

Free State, Bloemfontein, Woodland Hills
Experience an exciting lifestyle of safety, peace and tranquillity from a very neat and well located unit next to green area in popular retirement village...

CyberProp Property Count: 03/09/2010

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Properties for Sale: 141,828
Properties to Rent: 10,092

Local News

State of the art security now essential to any housesale, says APKF MD

One of the best pieces of advice that estate agents can give homeowners is that money spent on installing or upgrading the security of their homes is never wasted – it will in fact usually add significantly to the home’s value and marketability...

Global real estate trends are relevant to SA

Peter Gilmour, Chairman of RE/MAX of Southern Africa, considers the findings and advice of a leading global real estate report and highlights the startling similarities to the South African property market...

SA's costliest suburbs

Three of South Africa's 10 most valuable residential areas are located along Cape Town's coastline, according to a Lightstone properties report released on Thursday...

Prices to fall again?

The FNB House Price Index continued its trend of slowing year-on-year price growth, from a July revised rate of 10.1 percent to an August rate of 7.2 percent...

NCA being used to redline buyers

The rich in SA’s property market are getting richer while the poor get poorer because of the way the National Credit Act (NCA) is being applied...

One percent drop in the interest rate now essential

The next Monetary Policy Committee meeting is likely to allow a 0,5% drop in the bank interest rate - but, says Bill Rawson, Chairman of Rawson Properties, the cut should be at least 1% if any significant change in the economy, the growth rate, job creation and in residential property sales is to be achieved...

Steep Fall in Rate of Company Failures

Johannesburg — COMPANY failures plunged last month, while personal bankruptcies dived even more steeply in June, official data showed yesterday, providing some good news on SA's economic recovery...

PropStats figures reveal slight upturn in residential market

Latest figures from the Western Cape Institute of Estate Agents PropStats division (which tracks and analyses sales from some 4 000 agents in ±200 agencies or operations in the Western Cape) reveal that the upturn in the residential property market continues albeit at an unspectacular pace...

Sellers must make sure of ‘escape clause’ in linked deals

Many homebuyers these days first need to sell their own properties before they can proceed with the purchase transaction, and most sale agreements make provision for this with a “subject to” clause...

Before selling calculate ancillary costs

The ancillary costs of moving from one home to another are far larger than most people recognise, says Lanice Steward, MD of the Cape estate agency, Anne Porter Knight Frank...

How to avoid defaulting tenants

A recent report has shown that this year 9% of SA tenants in residential properties are not paying rents at all – and 28% are paying late...

Maintain rental properties properly

With the recession only partially behind us and with incomes often no longer rising in line with inflation (or any recognised growth strategy) it can be tempting to landlords to skimp on maintenance – but this is always “fatal” to the long term value of the building...

Rental demand a story of contrasts in 2010

For many Cape Town letting agents the first three months of this year were some of the busiest they have ever experienced, says David Beattie, a director of the Western Cape Institute of Estate Agents and Principal of Chorus Letting, which manages some a few hundred units between Milnerton and Muizenberg...

Court rules in favour of exorbitant rental increase

It is often said by property landlords that the best – and indeed the only – time when rental payments on a lease can be raised significantly is when one tenant leaves and another moves in. Until then the landlord has to abide by the annual rental increases that are stipulated in the lease agreement – and these are usually in the region of 10% and seldom higher than 12%...

Make sure holiday units are trouble-free

In residential letting, you usually only have to keep one tenant happy all year. But in holiday letting, you could have dozens of people to satisfy in the hope that they will come back or at least recommend your rental unit to friends...

Check building costs to get value for money

Everyone knows that newly-built homes generally cost more, meter for meter, than pre-owned properties, but many people still dream of building a new home from scratch and they need to be sure that they are getting the best possible value for money...

Large stands are good buys

Worldwide, the sub-division of large residential stands is gaining popularity – and presents good opportunities for property investors...

South Africa 'still benefiting' from World Cup

South Africa is continuing to capitalise on the recent World Cup event, claims a real estate company...

Focus On

Bloemfontein, Free State, South Africa

Bloemfontein, the Capital City of the Free State Province in South Africa, is centrally situated roughly in the middle of the Province, as well as in South Africa...

>> Property in Bloemfontein
>> Property in the Free State

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In the Area

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

  • Bloemfontein
  • Magaliesburg
  • Blouberg
  • Woodstock
In the area 1 - Bloemfontein

Chas Everitt opens in flourishing Bloemfontein

The Chas Everitt International property group now has an office open in Bloemfontein, which currently has one of the fastest-growing property markets in the country...

In the area 2 - Magaliesburg

Rural Magaliesburg is set to benefit from several residential developments that are awaiting services before construction starts...

In the area 3 - Blouberg

Blouberg tipped as SA’s hottest new playground

.It’s hot, it’s hip and it’s the most ‘happening’ place in the Western Cape to live right now, boasting a heady combination of magnificent beaches, awesome views and the integrated urban lifestyle sought after by today’s up-and-coming executives and professionals...

In the area 4 - Woodstock

Woodstock has a wow factor

One of Cape Town’s oldest suburbs, Woodstock, is set on the slopes of Devils Peak and enjoys views out to the harbour. Located within the City Bowl area, Woodstock also enjoys easy access to the Cape Town CBD...

To the editor

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

News from IHFM

Michael Bauer sets up new sectional title forum

Recent advice from a Cape Town Lawyer, Ulrik Strandvik of Grant Gunston Attorneys, is particularly relevant to those with investments in the property sector...

Upcoming events

High-performance cost-effective green design training - By Bill Reed
Green Commercial Interiors Seminar - By Digby Hall

The most effective green building projects don’t buy their greenness by tacking on features but rather use a different approach to design and management...

Local news continue

Contravening the conduct rules

Q&A with Jennifer Paddock

Q1: Please advise whether fines or penalties for contravention of the conduct rules can be imposed for persistent transgressors...

Trustee nominations and election

Prescribed management rule (“PMR”) 7 requires nominations by owners for the election of trustees at any annual general meeting (“AGM”) to be given in writing, accompanied by the written consent of the person being nominated at least 48 hours before the meeting. If insufficient nominations are received before the AGM, then further nominations can be given, with the nominee’s consent, at the meeting...

Tender process for low cost housing needs to be changed

The news that the State’s Special Investigatory Unit has arrested nearly 2 000 government officials, most employed in housing delivery, on charges of fraud, corroborates a statement made by himself earlier this year, says Paul Henry, MD of Rawson Developers...

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