Weekly Property News
13 May 2011

Dear Reader

Economists was left unsurprised when a decision was made to leave the repo rate unchanged leaving the prime lending rate at 9%. Some even predicts that there it will stay the same until early next year.

“It is widely expected that the interest rate should stabilize within the 9% - 10% range as long as inflation does not exceed the current ceiling of 6%. Although the property market’s recovery is still slow, we have experienced a higher rate of activity, indicating that a positive sentiment has returned to the market during the first quarter of 2011. It is even more encouraging that demand for property continues to rise despite an overall higher cost of living taking into account the recent petrol price hikes, which will have put further strain on consumers who already have a relatively high debt-to-income ratio. While a full recovery may take some time, there are signs that the property market is gaining momentum and that sales figures will continue to improve. This according to Adrian Goslett, CEO of RE/MAX of Southern Africa”.

Headlines: South Africa’s inclusion into the group that currently includes Brazil, Russia, India and China, means it will become BRICS and legitimises South Africa as not only Africa’s top economy but also a future global power. Property market set to boost as South Africa joins BRICS

Market news: Home values in the small, medium-sized and large categories of housing in South Africa for which Absa approved mortgage finance (see explanatory notes), experienced some further strain in April 2011 on a year-on-year basis. However, some marginal nominal growth occurred on a monthly basis in April in each of the abovementioned segments. In the first four months of 2011, average nominal year-on-year price growth was still positive in the three categories of housing compared with a year ago. Home values experience further pressure in Apri

The editor

In This Issue
Featured Property

Free State, Harrismith
- Bed: 6 | Bath: 3| Garages: 2
This old 1977 up market house, with the loveliest swimming pool and entertainment is situated in the town area of Harrismith...

CyberProp Property Count: 13/05/2011

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Properties for Sale: 142,056
Properties to Rent: 9,883

Intentional News

London’s real estate market bounces back

The sixth Duke of Westminster, Gerald Cavendish Grosvenor, might have the sweetest real estate deal on the planet...

Local News

Property market set to boost as South Africa joins BRICS

Confidence is growing in the South African real estate market and the country’s inclusion this year in the BRIC group of major emerging markets is set to boost foreign investment...

Home values experience further pressure in April

Home values in the small, medium-sized and large categories of housing in South Africa for which Absa approved mortgage finance...

Your property worth less

The April 2011 FNB House Price Index showed further mild acceleration of 2.2 percent in year-on-year growth compared to March’s revised rate of 1.2 percent...

The future is less house, more home

All the statistics show that buyer preferences are tending towards smaller homes at the moment – and not just because that’s all that’s available or all they can afford...

House prices affected by poor infrastructural maintenance

House prices in many areas, but especially those in the lower priced suburbs, are being held back by the failure of municipalities to maintain essential services and to look after and improve their infrastructures even when funds have been allocated for this work...

Sectional title property best performer

The latest FNB property survey, compiled by the bank's respected economist, John Loos, has shown that sectional title units have recently been far and away the best performers in the residential housing sector...

More women buying homes

The number of single female homebuyers in South Africa has risen significantly over the last four years on the back of an increase in single person households and women gaining better positions in the workplace...

SA Advertising Research Foundation figures show increase in black home ownership

When, on the many occasions over the last ten years or more that he has advised his franchisees, and potential property investors, to keep an eye on what is happening in the emerging black middle class market...

Consumer Protection Act

With the new Consumer Protection Act (CPA) now in effect, property professionals will be forced to look at the way they do business and how certain procedures affect both them and their clients..

Increasing fuel prices make city fringe living more attractive

The exceptionally high price of petrol at the moment is likely to be with us for years to come, says Bill Rawson, chairman of Rawson Properties – and this, he said, will affect the choice of areas in which people live to a far greater degree than has hitherto been the case...

Save on the wedding and buy a home

If you’re planning to take advantage of dry, sunny weather to get married in the next few months, why not give yourself the deposit on a home of your own as a wedding present?

Keep the lights on - and your bills down

Eskom has already advised users that with winter and heavy electricity usage on the way, it cannot guarantee that there will be no load shedding in the coming few months...

Use winter to get your home in shape

The dropping temperatures experienced in most parts of the country lately are a sign that winter – the prime season for home maintenance and improvement – is on the way...

Less stringent application of NC Act needed

Investec Group’s economist, Annabel Bishop, has predicted a 3,8% GDP growth over the coming year – a slight but significant upswing on the 2,8% of 2010...

Top tools for buyers and sellers

So you’ve decided you would like to buy a property or maybe sell the house you are in, where to now? With all the resources available to both property buyers and sellers, it really doesn’t have to be a daunting task. Adrian Goslett, CEO, RE/MAX of Southern Africa, explores some of the tools available to assist in smoothing the way to buying or selling property...

Focus On

Harrismith, Free State, South Africa

Surrounded by buttes and mesas, the town was founded in 1849 and named after Governer Harry Smith. An important crossroad in the land trade routes, it is still rich in the beauty of the surrounding mountains and rivers...

>> Properties in the Free State
>> Properties in Harrismith

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In the Area

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

  • Eastern Cape
In the area 1 - Eastern Cape

Eastern Cape will get a R2,7bn a year boost with the construction of a R4,2bn manganese smelter in the Coega industrial development zone...

To the editor

In last week’s newsletter we placed the following;

What is the expectations for the real estate industry over the next couple of weeks? Do you think that the month of April with all its public holidays and now the friction in the political scene can influence the property market? Or does this form part of a property circle of boom, slump and recovery?

Dear editor:

If we consider the last 30 days in real estate it is no different than the any other month the last six months even with public holidays no boom or slump more than a cruise.

We find a increase in rentals, but all African foreigners if they will develop as buyers then, is a guess.

Property prices are very negotiable these days, we find, but then this sale is being seen as a bargain. With an ever increase in levies also hounding the sectional title buyers.

Keep pushing
Conrad Nieman - Hall Real Estate Fourways

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Local News Continue

Get an agent to run interference on family deals

When you really need to sell your home – to move for a new job, to downscale for retirement or to reduce your debt load – a quick sale to a friend or relative who has expressed interest may seem like a very good idea...

Sectional titles and insurance - are you covered?

If you have premises within a sectional title development are you sure that you are sufficiently covered by your insurance in case of damage or loss?

Land victims had a decade to claim

There are many reasons to be wary of Rural Development and Land Reform Minister Gugile Nkwinti’s plan to ask the Cabinet to reopen the land claims process...

Asrin forged ahead despite recession

The main factors differentiating those SA residential property developers who have remained active through the downturn from those who have temporarily or permanently retired from the property scene...

Project loans now part of Propell package

Trustees of bodies corporate who neglect to maintain the communal areas of their schemes are not only causing them to lose value, but are contravening their responsibilities as set out in the Sectional Title Act...

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