Weekly Newsletter
Friday, 03 October, 2008
Property Search | Estate Agents | List your property

Edition 38 of 2008, Friday, 03 October 2008

Dear Reader

Do you have a house in your shopping basket? The South African consumers has definitely taken a battering as far back as when the new National Credit Act was introduced, then with the rise in interest rates of the last few years and eventually the increase of fuel prices. The result, potential buyers find it harder to source funding and the property demand started to dry up.

Property news this week seems to be more positive on the whole. The CEO of one of our Property Groups, Hall Property Group, told us that they have seen a turn in the property market for the month of September 2008.

We take a closer look at reports from two of the major banks, FNB and Standard Bank;

The September FNB House Price Index released on Wednesday showed a slight year-on-year increase (1,8%), but prices declining month-on-month (-0,1%). Residential values - when taking inflation into account - dropped by a whopping 9,5%. FNB – year-on-year price change edges towards deflation

Standard Bank's median house price jumped by a surprising 3.6 percent y/y in September from a y/y decline of 1.8 percent in August, the banking group's property gauge showed on Thursday. House prices spike

Do you have a car in your shopping basket?

New vehicle sales is down with 18,1% to 40 966 units last month the National Association of Automobile Manufactors reported yesterday. If you include sales from the Associated Holdings total vehicle sales fell from 55,645 September 2007 to 44,725 September this year. Toyota is leading the market with Volkswagen in second place. "Even though the worst period of rising inflation and interest rates is behind us, sales are likely only to find new impetus from the second half of next year, when lower inflation and interest-rate relief have had time to ease pressure off consumers' stressed financial positions," said Standard Bank economist Danelee van Dyk.

What I did find interesting is that new car sales in September 2008 had been up 0,2% on the previous month.

Gautrain - It has been nearly two years since we have seen the first of the constructions taking place. According to reports the constructions is all on schedule. For more information, some interesting facts and to see photos visit the official Gautrain website, www.gautrain.co.za

What about the property market? “My view is that one will get a lot of developments and property values will sky rocket in years to come near the stops along the Gautrain line." This according to First National Bank property strategist John Loos. Read more about what others have to say in Rosebank enjoys Gautrain boom

The name "Bedfordview" came about as the result of a competition in 1926. A girl who won the competition thought there was a nice view from Bedford Farm. "Bedford View" (two words) was then registered. Over the years the name has contracted to one word. Bedfordview has long been the area of choice for some of the wealthiest homeowners in the country, and famous for its excellent schools, proximity to the airport, location at the centre of Gauteng’s freeway network and its quality shopping malls and entertainment venues. Focus on Bedfordview, Gauteng, South Africa

The editor


>> Real Estate News - South Africa – Loan Demand Building on Concrete Housing Market

The demand for bank loans in South Africa will ascend during 2008-2012 due to an expected decline interest rates and boom in real estate market.

On the back of real estate boom, rising demand of mortgage loans and expected decline in interest rates, the total bank loans in South Africa are projected to grow at a CAGR of 11.7% during 2007-2011. These are the findings of our latest research report - “South African Banking Sector Analysis”...

>> UK house prices fall 1,7% in September

LONDON (October 02) - UK house prices fell by 1,7% in September. This brings the price of a typical house in the UK to £161,797, 12.4% less than at this time last year, according to Nationwide.

UK house prices have now fallen for eleven consecutive months, but the monthly rate of fall has been almost unchanged in the last three months. The less volatile three-month-on-three month series has also barely changed for the last three months, after accelerating in the first half of the year. This may suggest the beginning of some stabilisation in the pace of house price falls...

>> FNB – year-on-year price change edges towards deflation

JOHANNESBURG (October 01) - The September FNB House Price Index released today showed only slight year-on-year house price inflation to the value of 1,8%, compared to a revised 2.9% in the previous month, edging closer to the seemingly inevitable spectre of deflation.

On a month-on-month basis, price deflation has been a reality since early in the year, and a further –0,1% (-1,14% annualised) was recorded in September...

>> House prices spike

Standard Bank's median house price jumped by a surprising 3.6 percent y/y in September from a y/y decline of 1.8 percent in August, the banking group's property gauge showed on Thursday.

The median house price in level terms was R580 000 from R550 000 in August while the five-month moving average growth was recorded at 5.5 percent y/y...

>> Rates to drop?

Rates could come down sooner rather than later, Sasfin market commentator David Shapiro speculated on Wednesday.

This, particularly in a strong capital development phase in which a lot of projects needed cash, he said.

If there was not enough cash available, South African Reserve Bank Governor Tito Mboweni would have to kick-start the process by reducing interest rates, Shapiro said. However, he anticipated rates coming down globally and said South Africa would be following the trend. He believed that even if the US approved a package to rescue its banks, the market was "in for quite a rough time...

>> Identifying the next, best property location

Berry Everitt* Expect houses in central suburbs to keep rising steadily, if not spectacularly - estate agency boss.

* Like other residential experts Berry Everitt, head of Chas Everitt International, thinks the better locations will increasingly be those closest to business districts. Writing in Property Signpost, he says it is not just rising fuel prices that are behind the trend...

>> Ongoing maintenance is the key to enhancing the value of a home

When, as now, economic conditions in South Africa become tough there is always a tendency for cash-strapped homeowners to cut back on what should be a totally non-negotiable outlay - the ongoing maintenance of their homes. They may well continue to keep their appliances and motorcars running - but their greatest asset, their home, is very often neglected.

Lanice Steward, MD of Anne Porter Knight Frank, said that this has, time and again, proved to be disastrous because neglect will inevitably result in the home losing its value drastically...

>> Sold before you know it

If your job or life circumstances give you no choice but to sell your home in the current market, and you really need to sell soon, you are going to have to go 'above and beyond' to find a buyer.

So says Dr Piet Botha, chairman of the Nationlink estate agency group, who advises that, to start with, you will need to think and act like a salesperson and separate your emotional attachment to your home from your financial interest in your family's largest asset...

>> Rosebank enjoys Gautrain boom

THERE is a development explosion taking place in Rosebank, with the catalyst being the Gautrain station that is taking shape in Oxford Road.

The question now is whether the Gautrain station will restore Rosebank, a popular mixed-use precinct in Johannesburg, to its former position as one of the top nodes in the city.

There appears to be far more development taking place in Rosebank than the more illustrious Sandton...

>> Green Building Council of South Africa ensuring international exposure

The Green Building Council of South Africa (GBCSA) was represented at this years World Sustainable Building (SB08) Conference, which took place in Melbourne from the 21st to the 25th of September 2008.

According to Bruce Kerswill, executive chairman of the GBCSA, the SB Conference, which is held every three years, is the summit gathering of the worlds leading technical experts and researchers on sustainable building with over 60 speakers, and more than 500 peer-reviewed scientific papers...

>> To the editor

From the editor;

We often received emails from our CyberAgent users asking for information on Sectional Titles. A free Sectional Title website, Sectional Forum has just been launched. The purpose of Sectional Forum is to serve as a helpline and on-line resource centre, catering for the sectional title community. Various industry experts including Rob Mc Williams the editor of BCN and Specialist Sectional Title attorney Mr. Tertius Maree, contributes to the site by answering your questions on-line www.sectionalforum.co.za

From a reader;

We have been asked to help source a building, and ask that you contact me should you know of a building that is or could be for sale with the following characteristics- Office building of at least 3 000m2, in the Northern suburb areas of Rosebank, Illovo, Sandton, Parktown, Bryanston

The purchaser is expecting to be paying (market value) in the region of R10 000 – R12 000 /m2, and requires that the building have at least 1 500m2 of space which will be vacant in the near future.

SAPOA, IEASA, NAR(International), MNAEA(Overseas), TRC

PRO-PROP Property Consultants
P.O. Box 242, Plumstead, 7801, Cape Town, South Africa
Tel.: +27 21 7610190 Fax: +27 21 7615994
Web: www.pro-prop.co.za

>> News from - Barry Davies, CEO of Chas Everitt Franchising

Recipe for success in tough property market

Tougher conditions in the real estate market have driven many smaller estate agencies to the wall, and many independent agents have either left the market or joined large real estate groups.

But, says Barry Davies, CEO of Chas Everitt Franchising, the group’s offices are holding their own...

>> Pick a pearl in Bedfordview

Situated on Bedfordview’s sought-after Douglas Road is The Pearls, an exclusive new cluster development.

Michael Pompa of marketers Nationlink Wanda Bollo says there are just five homes left for sale in the complex, at prices ranging from the mid-R5-millions to the upper R7-millions depending on size and views.

“These homes on Millionaires’ Row all feature international finishes and all have four bedrooms, three reception rooms, studies, staff quarters, swimming pools and at least two garages,” he says...

Focus on Bedfordview, Gauteng, South Africa

Bedfordview is an affluent town on the East Rand in which is situated in Gauteng, South Africa. Bedfordview has been part of the Ekurhuleni Metropolitan Municipality since 2000...

>> View Properties in Bedfordview
>> View Properties in Gauteng

>> Property of the week

Gauteng, Bedfordview

Out of the pages of Habitat unfolds this international masterpiece. A home of extraordinary grandeur and luxury for the connoisseur of life – unsurpassed panoramic views, prestigious position in the heart of Bedfordview and a secluded ambience and privacy seldom found.

Bedrooms: 5
Bathrooms: 5
Garages: 4

Search for property in your area

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>> IEASA membership now a ‘must’ for serious agents

Any agents who want to call themselves professionals in future will have to belong to the Institute of Estate Agents (IEASA).

That’s the unequivocal word from IEASA national president Dr Willie Marais, who also says that the current apathy among agents about issues that could seriously affect their livelihood and their future needs to change drastically...

>> Software at its best!

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If you would like to know more about the above features and benefits that CyberAgent offer, visit: www.cyberagent.co.za or email: sales@cyberprop.com

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