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Weekly Property News
Friday, 07 May, 2010

Dear Reader

How to handle increased costs? This is for sure not an easy question to answer. All I can tell you is that you will have to do it with care and intelligently. Increases of costs is “the” one issue that will not go away and day by day we see the property industry hit hard with increases like electricity, interest hikes etc
Headlines: “JSE-listed steel producer ArcelorMittal South Africa (AMSA) confirmed to Engineering News Online on Monday that the price of flat and long steel for delivery from June 1, 2010, would increase by between 2% and 17%, depending on product type – news of the increase was met with anger by steel consumers.” And this is happening all over;

An increase of between 6.2 percent and 43 pecent is proposed by South Africa’s water boards. Water tariff hikes on the cards.

Proposed changes to the Municipal Property Rates Act would result in homeowners paying more. This is the fears that was downplayed by Deputy Cooperative Governance and Traditional Affairs Minister Yunus Carrim on Monday. Homeowners to pay more?

Market news: House price growth increased modestly in April, rising to 2% y/y from 0.5% y/y in March, taking the median property loan financed by the bank to R571 000 from R550 000 in February. This growth remains modest in comparison to other indicators that are signalling a stronger turnaround in the appetite for mortgage finance. We believe that this growth rate reflects a healthy improvement in line with the current business cycle dynamics, as a steeper acceleration relative to economic activity is deemed risky during the early phases of economic recovery. A healthy recovery underway

The editor

In This Issue
Featured Property
Western Cape, Plattekloof

Inspiringly modern home with breathtaking views and exceptional quality. Two for the price of one! Multi Level masterpiece for two independent families...

Local News

SA border towns booming

Increasing cross-border trade and traffic between South Africa and Mozambique via the Maputo Corridor is creating positive spin-offs for the property market in neighbouring towns such as Nelspruit, Komatipoort and Malelane...

Knight Frank Prime Central London Index April 2010

South Africa’s financial institutions have taken the brunt of the blame for not approving more mortgage finance, which many believe would go a long way to further stimulating trade within the property market...

Buyers must do their homework

Adrian Goslett, CEO of RE/MAX of Southern Africa explains how, where and why buyers should do their homework before purchasing a property...

Existing bonds can be converted to access bonds

With buy-to-rent investors once again moving back into the residential property sector, it is becoming clear that as a result of the National Credit Act certain applicants no longer qualify for the sort of bonds that they were able to get previously...

Concerns about reverse mortgages

There has been an increase in the number of financially hard-hit pensioners applying for reverse mortgages on their homes, say financial advisers...

From debt comes distress

According to the National Credit Regulator (NCR), the credit standing of consumers has continued to deteriorate, with data indicating that the number of credit-active consumers increased to about 18 million in the third quarter of 2009, up from 17,8 million in the second quarter...

Some developers saw recession coming

Although the worst effects of the recession are now tailing off, property development and construction companies still have a long hard road to walk before anything like “normal” trading conditions are seen again, says Paul Henry, Managing Director of Rawson Developers and Rawson Construction....

Investors returning to buy-to-let property

There has this year, says Tony Clarke, MD of Rawson Properties, been a steady stream of investors returning to the buy-to-let residential property market – and the reason for this, he says, is that the returns here are now looking better and better...

SMME's the neglected key to property growth

Small to medium enterprises (SMME’s) are the key to further solid, broad based recovery of the property market and there’s a strong case to be made for nurturing this market through fresh incentives...

Obstacles for the unwary in Insolvency Act

If you’re one of the many thousands of people who’ve decided to run a business from your home, you may not now be able to sell that property legally unless it has first been advertised in the way prescribed by the Insolvency Act – even if you are not about to go insolvent...

Divorcing couples must still pay rent

Is the lease on a home tenanted by a couple married in community of property automatically cancelled if the couple gets divorced...

Truth or Dare?

So, you want to reclaim some land, build an island paradise containing some 500 residential apartments, maisons and luxury villas, add retail outlets, restaurants and a hotel component and, of course, make it commercially viable...

Green Building Council Launches 2nd Green Star Rating Tool for Retail Centres

Following the successful launch of the Green Star SA environmental rating system for office buildings in 2008, the Green Building Council of South Africa (GBCSA) has released the much anticipated Retail Centre rating tool, the second in the suite of Green Star SA rating tools now available...

Kelvin Grove Property Breakfast

With interest in buy-to-let residential properties stimulated by the lower prices now available and the lower interest rates, and with investors increasingly spreading their portfolios to take advantage of bargain buys, Rawson Auctions...

Water tariff hikes on the cards

Deputy Cooperative Governance and Traditional Affairs Minister Yunus Carrim on Monday downplayed fears that proposed changes to the Municipal Property Rates Acts would result in homeowners paying more...

Homeowners to pay more?

Deputy Cooperative Governance and Traditional Affairs Minister Yunus Carrim on Monday downplayed fears that proposed changes to the Municipal Property Rates Acts would result in homeowners paying more...

CyberProp Property Count: 07/05/2010

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Properties for Sale: 135,815
Properties to Rent: 10,123

Focus On

Focus on Nelson Mandela Bay, Port Elizabeth, Eastern Cape, South Africa

The sport stadium at St George’s Park, conveniently nestled in the leafy suburb of Park Drive in Nelson Mandela Bay, has been selected as the venue of the Official FIFA Fan Fest™. As such, it will act as the destination for locals and tourists alike to converge in a central location before, during and after the airing of the live football matches...

>> Propert in Port Elizabeth
>> Property in the Eastern Cape

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

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Enter City/Suburb:

In the Area

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

  • East London
  • Pretoria (Wilgers)
  • The Cape
In the area 1 - East London

There’s a buzz at the lower end of the East London market

There’s lots of action right now in the East London property market, and especially in the lower-priced sectors...

In the Area 2 - Pretoria (Wilgers)

Demand high in Wilgers and surrounds

Activity in the property market in Wilgers and surrounding areas in Pretoria has picked up dramatically...

In the Area 3 - The Cape

Rentals on Cape homes now moving upwards

Rentals on Cape homes are now moving upwards and returns of 7% or 8% per annum are now quite common, says Lanice Steward, MD of the estate agency Anne Porter Knight Frank...

To the editor

Tourists bowled over by new airport

A group of 70 German tourists were among the first international visitors to use Durban's new R7,2-billion King Shaka International Airport, when they arrived at the airport on Sunday to be greeted by a colourful dance group of Zulu women...

Send your viewpoint to news@cyberprop.com

News from IOEA

Propstats figures confirm Western Cape's upswing in sales

Reports from several Cape estate agencies that their turnovers have risen quite noticeably this year appear to be part of a general upturn recorded by most of the more reputable estate agencies, says Annette Evans, Manager of the Western Cape Institute of Estate Agents...

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