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Weekly Property News
5 November, 2010

Dear Reader

The battle in the property industry continues!
According to Statistics South Africa’s quarterly labour force survey the finance and business sector shed 89 000 jobs between July and September 2010. The finance and business sector includes the real estate industry.

 This week in the news Andy Beddow, Director of Baker Street Properties said that there is a large vacancy level in the industrial property market. "Our latest figures reflect an overall market vacancy of 526,000 sqm in the greater Cape Town area, reflecting an increase in vacancies in almost all locations.

The average nominal value of homes increased at a year-on-year rate of 1% in October 2010. Price growth in the value of middle-segment homes for which Absa approved mortgage finance (see explanatory notes) continued to slow down up to October this year. The growth in the weighted average nominal value of small, medium and large houses came to only 1% year-on-year (y/y) in October, bringing the average price of a middle segment house to R1 005 800. Revised price growth of 3% y/y was registered in September. On a month-on-month basis the average nominal value of middle-segment homes declined further in October, but the pace of monthly contractions slowed down somewhat over the past three months. Lowest house price growth in twelve months

Market news:
The mediocre performance of the property market is set to continue for some time. Clearly, households are still concerned about their financial health and are unwilling to make long-term commitments. Lending criteria of financial institutions remain tight. We expect house prices to remain sluggish over the short- to medium-term and growth may decline further into 2011. Only once overall sentiment improves, may we see a better performing residential property market. Residential property: Mediocre performance set to continue

The editor

In This Issue
Featured Property

Cape Town, Western Cape
House : Beautiful Tuscan Villa situated on a large erf with outstanding views overlooking Clifton and Bantry Bay. The indoor / outdoor flow is ideal for entertaining on a large scale...

Local News

Kenya - Real estate boom draws global marketing firms

The real estate boom has caught the eye of international marketing firms, which have intensified efforts to link up local developers with opportunity-seeking foreign investors, particularly those based in Europe and other emerging economies.

Frost & Sullivan Publishes Economic Outlook for South Africa

International Influence

International growth recovery is continuing, but uneven and fragile. The major concerns remain the large fiscal deficits, high sovereign debt ratios and structural weaknesses in the economies.

The world's top performing property market

CAPE TOWN - Israel is known for its difficulties but when it comes to property, alls fair in love and war, and Israel, having seemingly sidestepped the worst of the recession, now enjoys the position of top performing real estate market in the world.

Lowest house price growth in twelve months

Price growth in the value of middle-segment homes for which Absa approved mortgage finance (see explanatory notes) continued to slow down up to October this year..

Residential property: Mediocre performance set to continue

Standard Bank's median house price for October lost momentum, with the y/y growth rate increasing at a slower rate of 6.5%, compared to 8.3% in September...

Absa to Offer Mortgages on Tax Law: Islamic Finance (Correct)

Absa Islamic Banking, a unit of South Africa’s third-largest bank, plans to offer Islamic mortgages after the government introduces new tax rules next year.

Pros and cons of safe estates

While fear of crime prompts more home buyers to look for properties in gated communities, there is still a market for homes outside security estates.

Jason Rohde, CEO of Lew Geffen Sotheby's International Realty, said many home buyers perceived homes in gated communities to be safer..

7600 shack-owners housed

The last of about 7600 shack-dwellers who had formerly occupied land needed for the Khayelitsha rail extension project in the Enkanini informal settlement have now moved to their own serviced sites, the City of Cape Town said on Wednesday.

Is DIY selling a good idea

South Africa, says Anton du Plessis, CEO of the Cape Town estate agency, Vineyard Estates, is the traditional home of the entrepreneur and self made man.  The diamond and gold mines fostered a culture in which people accepted that they could take control of their own futures – and become wealthy.

Make sure there's no gap in your home insurance

You probably check on your car and household contents insurance at least once a year, but what about the policy covering damage to your home or its complete loss in the event of a fire, flood or other catastrophe?

Agents accepting lower commissions are probably suspect

Any home seller who negotiates his estate agent’s commission down to an ultra-low level is almost certainly doing himself a disservice – and any agent who accepts a lower commission should be regarded with suspicion.

Those seeking to transform estate agency sector face challenges

Anton Du Plessis, CEO of Vineyard Estates the outgoing chairman of the Western Cape Institute of Estate Agents Peninsula Committee, said recently that he and his fellow committee members had accepted wholeheartedly the government’s instruction to transform the estate agency sector.  The alternatives, he said, is to face “prescriptive action”.

Parking vital for values

The availability of parking is rarely a main concern for homebuyers, but it is becoming an increasingly important factor in property values, explains Adrian Goslett, CEO of RE/MAX of Southern Africa…

News from Dormehl Property Group

RPL... But with a difference

Just after 7:00am on a crisp August morning 19 highly experienced Dormehl Property Group principals converged on the group's Westville Head Office to start a new chapter in their profession with them all about to embark on the Real Estate Industry's regulatory NQF5 requirement.

Focus On

Cape Town, Western Cape, South Africa

Robben Island

For nearly 400 years, Robben Island, about 12 kilometres from Cape Town, was a place of exile and imprisonment where rulers sent those they regarded as outcasts and troublemakers.

>> Property in Cape Town
>> Property in Western Cape

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1. Western Cape
2. Garden Route
3. Northern Cape
4. Eastern Cape
5. KwaZulu Natal
6. Free State
7. North West
8. Gauteng
9. Mpumalanga
10. Limpopo

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In the Area

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

  • Pretoria North
  • KwaZulu Natal
In the area 1 - Pretoria North

R100 million affordable housing development in Pretoria North

Nedbank Corporate Property Finance: Affordable Housing has provided R34 million funding for the installation of services and infrastructure and the construction of 428 sectional title homes in the Northern Suburbs of Pretoria

In the area 2 - KwaZulu Natal

Snags with planning act delays KZN property developments

Planning for developments in KwaZulu-Natal has been delayed due to problems with the Planning Development Act.

Riskiest places in Gauteng

The most likely places to be injured and killed in Gauteng are on the road or at home, the SA Medical Research Council (MRC) said on Thursday.

Just under half of all injuries leading to death took place on the province's roads, with homes coming in second at 21.9 percent, MRC spokesperson Hilton Donson told reporters in Johannesburg.

read more..

Green Building training to be held in Durban on 18 November

The Green Building Council of South Africa (GBCSA), the non-profit organisation which is driving the shift of the commercial property and construction industry in South Africa to environmental sustainability, will be running training in Durban on 18 November.  

read more..

Local News continues

Institute of Estate Agents needs more members

Although the Western Cape Institute of Estate Agents is one of the Institutes most successful regions in South Africa, it urgently needs more members, says Sandy Walsh, the Institute’s training manager.

When buying into sectional title scheme do your research carefully

Ulrik Strandvik of Grant Gunston Attorneys, an experienced Cape conveyancer, says that buyers moving into what is now the fastest growing sector of the SA residential property market, sectional title schemes, often do so with far too little research and awareness of the potential problems.

Abuse of trusts hit hard by court decisions

Certain High and Appeal Court cases over the years have brought home to the South African business community that the advantages of establishing a trust as a vehicle for protecting assets and for estate planning purposes..

Fine tuned collections

Propell, the sectional title collection and funding company that operates throughout South Africa, has this year achieved a 27% increase in the collection of sectional title levies that are in arrears - and a further improvement, says the CEO, Andre van Schaik, is on the cards for the year ahead....

CyberProp Property Count: 29/10/2010

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