Weekly Property News
11 November 2011
FROM THE EDITOR

Dear Reader

It’s clear according to the latest property price index from ABSA that house prices are not growing in line with inflation. This is for sure creating a worrying picture of the state of the SA’s residential property market;

Headlines: House prices are not growing in line with inflation, according to Absa's latest property price indices released on Monday. "The average real price (at constant 2008 prices) of houses in the middle-segment of the market was in September this year about 13 percent below its peak of mid-2007," Absa Home Loans property analyst Jacques du Toit said in a statement. "This was the result of average nominal house price growth being below the average headline consumer price inflation rate during this period." Home price deflation continues

The latest FNB house price index puts year on year house price growth at 5,1% and inflation at 5,7%, indicating that, in real terms, house prices are still declining - by 0,6% per annum. "The higher inflation rate," says Sean McCauley, a director of Rawson Properties, "might seem to indicate that South Africans have increased their spending. However, if you look at the main components of their payout basket comprising food, water, rates, electricity and private transport, it is clear that it is the huge increases here that are responsible for the higher inflation. South Africans are on the whole living responsibly." FNB: 'Interpreting the latest property figures'

Market news: Real house prices in South Africa are declining at rates last seen 25 years ago as economic growth stagnates. Home owners face the prospect of owning negative equity as house prices are expected to continue to decline for the rest of this year and the next on rising inflation, which is forecast to breach 6 percent soon. Price drops worst in 24 years

Enjoy!
The editor

In This Issue
Featured Property

Free State, Kroonstad, Panorama
House:
Bed: 4 | Bath: 3


CyberProp Property Count: 11/11/2011

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Properties for Sale: 142,495
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Local News

Home price deflation continues

House prices are not growing in line with inflation, according to Absa's latest property price indices released on Monday...


Absa: Home prices to fall more

House prices in real terms are expected to continue to decline for the rest of the year and in 2012 on the back of rising headline consumer price inflation, which is forecast to marginally breach the 6 percent level by the end of the year and for part of 2012 according to Jacques du Toit, property analyst at Absa Home Loans...


FNB: 'Interpreting the latest property figures'

The latest FNB house price index puts year on year house price growth at 5,1% and inflation at 5,7%, indicating that, in real terms, house prices are still declining - by 0,6% per annum...


Price drops worst in 25 years

Real house prices in South Africa are declining at rates last seen 25 years ago as economic growth stagnates...


Housing market now bottoming out

In her position as general manager of the Western Cape Institute of Estate Agents, says Dianne Brock, she is continually being asked for forecasts and predictions on the local residential property market...


John Loos talk on property business

The +/-100 members of the Western Cape Institute of Estate Agents who attended its recent annual general meeting were treated to a talk on South Africa’s current economic and property conditions that, says the Institute’s general manager, Dianne Brock, was “one of the most informed and insightful on the property market this year.”


European property no longer a safe haven

Anyone commenting on the Greek debt crisis right now cannot know what the final outcome will be – but what is clear is that, with Europe set to endure a three to five year low or no growth period, the repeated advice by some to diversify property portfolios by going into Europe is looking “even less sensible” than when it was originally touted as a wise move...


Research and markets

Research and Markets has announced the addition of Business Monitor International's "South Africa Real Estate Report Q4 2011" report to their extensive offering of property market research publications.


Residential property survey figures

The latest FNB house price index puts year on year house price growth at 5,1% and inflation at 5,7%, indicating that, in real terms, house prices are still declining – by 0,6% per annum...


Weak rentals spoil buy-to-let

A surprisingly mediocre rental market is contributing to a weakening buy-to-let market, according to FNB's Estate Agent Survey for the third quarter...


Frustrated Joburg residents caught in property billing mess

The City of Joburg's extensive cut-off campaign during the past week has left residents reeling, angry, frustrated - and even suicidal...


Distressed sales buoy PE market

Buyers are moving fast to take up the supply of distressed properties in the Port Elizabeth market, and sales are brisk in the whole R400 000 to R1,2m price range as a result...


Bathroom Budget Renovations

Freshening up the look of an outdated bathroom can add value to a home without costing too much, says Adrian Goslett, CEO of RE/MAX of Southern Africa...


Location, quality and flexible office space helps letting

Growthpoint Properties Limited has successfully leased both 11 Adderley Street and The Estuaries Office Park to blue-chip local and global tenants, bringing the fund’s Cape Town office portfolio vacancy rate to less than five percent...


The Battle of the Beach fronts

Let’s face it there has to be some resentment, so much of the glamour of ye olde Durban shifted to Umhlanga in the 1980s through to the ‘90s...


Concourt to rule when landlords may cancel leases

The Constitutional Court was due to hear argument today on whether a landlord may cancel leases and evict tenants to get higher rentals...

Focus On

Kroonstad, Free State, South Africa

The neat pleasant town of Kroonstad, the third-largest town in the Free State, lies two hours drive from Gauteng, making its position on the map as important as in the agricultural economy it supports...

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>> Properties 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;

  • Lower Constantia
  • Parklands
  • Cape Town
In the area 1 - Lower Constantia

Lower Constantia house prices are rising

When South African architects design in the increasingly popular Cape vernacular style, there is, says Lanice Steward, Managing Director of Anne Porter Knight Frank, always a danger that extraneous influences and motifs will somehow creep into the final conception, rendering it inappropriate for use in the Western Cape or, indeed, anywhere else...


In the area 2 - Parklands

Parklands homes in high demand with family buyers

The Cape Town suburb of Parklands, which was named after the many landscaped parks scattered in and around the suburb, is one of the most idyllic family suburbs in the Western Cape, according to Caron Leslie, Broker/Owner of RE/MAX Property Associates, which operates in Blouberg and the surrounding areas such as Parklands, Table View and Sunningdale among others.


In the area 3 - Cape Town

Will The World Design Capital 2014 Award Give Cape Town Property A Boost?

Cape Town has been awarded the 2014 title of World Design Capital. The city, and indeed the country, seems braced for another injection of tourists and potential investment...


To the editor

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Local news continue

Arbitration ideal way to settle ST disputes

In the not too distant future, the newly proposed Community Scheme Ombud Office, which will administer disputes in the sectional title sector, will be able to appoint arbitrators to handle disputes between owners, trustees and/or managing agents. This could be welcome news, says Catherine Cockcroft, sales manager of Propell, the sectional title levy funding organisation – but it will require highly competent people...


Granny flats can be problematic

The building of an expensive granny flat or cottage on the property of one’s offspring is a great way to realise capital (from the sale of one’s home) and to improve one’s security in old age – but it can have unpleasant repercussions, says Rob Lawrence, national manager of the bond originators, Rawson Finance...


Institute steps up its training for 2012

In marketing residential property today, says Dianne Brock, general manager of the Western Cape Institute of Estate Agents, agents may find themselves on an easier wicket as a result of the number of agents in SA being reduced by two-thirds...


An agent can work on a property for an extended period and be paid nothing when it is sold

Anton du Plessis, Chief Executive of Vineyard Estates, recently found himself in a situation where, after for working for a full year to sell a residential property (i.e. long after his sole mandate on the property had expired), it was eventually sold by the owner to a member of his own family...

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