Weekly Property News
04 March 2011

Dear Reader

Fracking up the Karoo; This was a broadcast by Carte Blanche a few weeks ago. The Karoo residents are angry as 200 000 Square kilometres - a massive 15% of South Africa's total land mass - is up for grabs for exploration, to extract natural gas trapped in the shale formation of the Karoo basin. The method that will be using is called “Hydraulic fracturing” or in short “fracking”. This is a mining technique developed in the United States which releases natural gas trapped in shale. This technique is still under investigation and has major environmental side effects. A senior executive of Shell SA said this week that Shell SA will use a safe technique not known to harm the environment. This might put some Karoo residence at ease but not those who are land owners. According to South African law land owners may own the land but they don’t own the mineral rights. Sad but true.

Headlines: South African President, Jacob Zuma, has given his strongest indication yet that his government is considering a ban on property ownership by foreign nationals. “Land reform will now be based on the deracialization of the rural economy,” Zuma told a rally in the northern town of Polokwane this week. South Africa hints at foreign ownership ban

Market news:

FNB: The February 2011 FNB House Price Index showed further slowing in year-on-year growth to a mere 0.2 percent, down from the previous month’s revised 1.3 percent increase. In real terms, the January average house price (adjusted with the CPI) showed a year-on-year decline of -2.3 percent due to that month’s 1.3 percent nominal increase being significantly lower than the 3.7 percent consumer price inflation rate of that month. Property in the doldrums.

Standard Bank: Standard Bank’s median house price eased in February, recording a 1.5% y/y growth rate, from 2.3% y/y in January. Residential property market participants continue to enjoy the lowest interest rates in three decades. Household disposable income and net household wealth exhibited relatively strong growth in the first three quarters of 2010. This trend bodes well for durable goods spending. A lack of growth stimulus.

The editor

In This Issue
Featured Property

Viridian Square, Burgundy Estate, Western Cape
Security | Lifestyle | Affordability.
All of these are the characteristics of the brand new Viridian Square in Burgundy Estate, Plattekloof. Offering 38 Single and Double Storey homes, the Purchasers of these Plot & Plan units will have an option between 6 layout designs ranging from R694 400. All Costs are included, and occupation is expected by Spring 2011.

CyberProp Property Count: 04/03/2011

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Properties for Sale: 143,116
Properties to Rent: 10,476

Local News

South Africa hints at foreign ownership ban

South African President, Jacob Zuma, has given his strongest indication yet that his government is considering a ban on property ownership by foreign nationals...

Property in the doldrums

The February 2011 FNB House Price Index showed further slowing in year-on-year growth to a mere 0.2 percent, down from the previous month’s revised 1.3 percent increase...

A lack of growth stimulus

Standard Bank’s median house price eased in February, recording a 1.5% y/y growth rate, from 2.3% y/y in January...

Strong and steady growth predicted for Sub-Saharan Africa

Commenting on the latest World Economic Outlook (WEO) Update which was released in January 2011, Peter Gilmour, Chairman of RE/MAX of Southern Africa, says there is good news regarding the future prospects for the Sub-Saharan African region in terms of the global economy...

Market is firming up

Although the number of unit sales in the Western Cape residential property market is still possibly 35% down on those of the 2006/2007 boom era, the market is firming up and showing increased confidence, says Bill Rawson, Chairman of Rawson Properties...

Mortgage growth slowing

Mortgage growth stays slow, but overall household credit growth doesn’t, with shorter term borrowing starting to "misbehave"...

Increased car sales augur well for the home market

Thirty five years in the residential and commercial property market have, says Bill Rawson, Chairman of Rawson Properties, shown that certain indicators point to a revival of demand for housing – and one of the most obvious pointers is rising car sales...

How you can “green” your ride

It’s well known that transport systems are some of the biggest culprits when it comes to environmental damage – accounting for around a quarter of all carbon dioxide emissions and gobbling up energy resources like there’s no tomorrow...

Transfer duty rate cuts to boost the residential market

Finance Minister Pravin Gordhan's Budget included some significant changes to the transfer duty payable on property purchases. These changes could provide a significant boost to the residential property market...

5 tips for saving at home

If you want to start saving money and get your budget on track, the best place to do so is at home. But where do you even start?

The anatomy of a property bubble

Property bubbles seem like strange things: if everyone wants to buy and build better property, why should this cause the prices and investments to crash? Using a simple demand and supply framework, we can explain one way that this can happen...

Stilus' Santam Insurance - Cash-flow Assurance as opposed to Levy Finance

The type of insurance referred to in the Sectional Titles Act and the prescribed management rules is "indemnity insurance"...

Time to renovate is NOW!

Even though house prices are only rising slowly at the moment, it is worth investing in your home to maintain and improve it...

Affordable housing quality

Paul Henry, Managing Director of Rawson Home Builders and Developers (which in its 17 years in operation at the Cape has completed more than 80 residential developments), has taken issue with Chris Vick, Special Advisor to the Human Settlements Minister, Tokyo Sexwale, on statements made recently by him to the effect that the government's R1 billion guarantee fund for affordable homes is proving highly effective and is on track...

The importance of being correctly covered

While hurricanes, tornadoes and other extreme weather conditions do not factor into the average South African’s thoughts, the fact that the world seems to be facing a barrage of devastating disasters has, once again, highlighted the need for home owner’s insurance that covers every eventuality...

Shorten leases, negotiate rentals, retain tenants

The enormous number of imponderables that are about to impact property investors means that to keep the asset performing at optimum levels, negotiation and compromise are the rule right now...

Why it’s time to invest in coastal property

West Coast franchisee Kobus Potgieter and top listing agent Chantelle Mathews with Chas Everitt International MD Berry Everitt. Property prices in many coastal areas have stabilised and in some instances are even starting to rise again, mostly on the back of increased investor interest...

Focus On

Burgundy Estate, Western Cape

Positioned adjacent to the idyllic vineyards of the Durbanville Hills and historic De Grendel wine estates, Burgundy Estate is truly a suburb in its own right. Living here means falling in love with the outdoors...

>> Properties in Burgandy Estate
>> Properties in the Western Cape

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Enter City/Suburb:

In the Area

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

  • Ladybrand
  • New Castle
In the area 1 - Ladybrand

Ladybrand holding its own

Known as the land of a thousand pictures, the Eastern Free State offers something for every season – from roaring fires in winter, to lush, grassy scenery and sunshine in summer...

In the area 2 - New Castle

Retail plans boost Newcastle property demand

Newcastle is already the industrial and economic powerhouse of the Amajuba district in northern KwaZulu-Natal, and now it is set to become the retail hub of the area as well, thanks to the development of a new R400m regional shopping mall in the town...

To the editor

Suspension of EEAB CEO

Dear Sir

With all due respect with her reference to the "whiteness of the industry" does this lady realise that agents are not paid a cent and get commission only? Who will pay the salaries of the people she is wanting to flood the industry with?


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

News from Propell - Merger with Baedex

SA top players in sectional title levy collections and funding now combined

Propell and Baedex, the leading South African companies specialising in levy collections and funding for sectional title schemes and home owners associations, have announced that they will form a single group...

Local News Continue

Run your schedule properly

To be able to beat time and be punctual despite your hectic itinerary, the following are simple tips I personally find practical: do proper time management, change habits, sleep early, plan meals for the entire week, prepare things the night before, and devise a fashion calendar...

Estate agencies benefit from Argus Cycle Tour

It may sound the most obvious statement that a property marketing company could make but it is a fact that Cape Town estate agencies do benefit from the influx of visitors and the high profile TV coverage that results from the Pick ‘n Pay Argus Cycle Tour...

Extensions - Make it legal!

The Sectional Titles Act and the prescribed rules provide relatively complicated processes for certain operations. Getting everything right depends on a fairly comprehensive knowledge of the Act and rules...


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