Weekly Property News
13 July 2012
FROM THE EDITOR

Dear Reader

Experts says that the recent upward trend in the U.S property market is an encouraging signal and it seems that the housing down cycle might be bottoming out shortly. Is this also the case for South Africa? “House price growth is expected to remain relatively low over the short to medium term‚ set to be affected by economic developments affecting household finances‚ consumers’ risk profile‚ levels of confidence and housing demand and supply. These factors are expected to be reflected in property buying patterns‚ the demand for and the affordability and accessibility of mortgage finance.” This according to Absa property analyst Jacques du Toit.

Headlines: With the London Olympics opening ceremony just weeks away, the promise of rocketing house prices in the areas surrounding the Olympic site has not been fulfilled. In fact, according to a new report, the housing market in the area, particularly around Stratford to the east, has: “under-performed despite high expectations and new investment.” No Olympic boost for London property prices.

Market news: In the second quarter of 2012‚ the net foreign effect on the South African property market was virtually unchanged from the first quarter‚ and was significantly better than a year or so ago. With regard to outflows of South African homeowners‚ the estimated percentage of domestic sellers selling in order to emigrate was almost unchanged at 3.8 percent of total sellers in the second quarter‚ compared with 3.6 percent in the previous quarter‚ according to agents surveyed. This is the sixth consecutive quarter that the sample of agents has estimated a percentage at near to 4 percent‚ and the level remains a far cry from the 20 percent peak of the third quarter of 2008. Emmigration selling plummeting.

Enjoy!
The editor

In This Issue

Western Cape, Ceres, Koue Bokkeveld
141ha Private Nature Reserve, 75km's from Ceres, Indigenous fauna and flora, total privacy, plenty of water with dam


CyberProp Property Count: 13/07/2012

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Properties for Sale: 122,320
Properties to Rent: 11,467

News

No Olympic boost for London property prices

With the London Olympics opening ceremony just weeks away, the promise of rocketing house prices in the areas surrounding the Olympic site has not been fulfilled. In fact, according to a new report, the housing market in the area, particularly around Stratford to the east, has: “under-performed despite high expectations and new investment.”


Africa piles into property as SA mulls leasehold law

First National Bank’s property barometer for the second quarter shows African foreign buyers increased from an estimated 8,5% of the total in 2010 to 20% this year...


Real home prices still falling

Year-on-year (y/y) changes in nominal house prices in the South African housing market appeared to be stabilising after a period of some price declines‚ with the June y/y change in the medium-sized (141 square meters to 220 square meters) house segment steady at 1.1 percent y/y in both June and May‚ Absa [ASA] said on Monday...


Huge transformation in SA's real estate market

Transformation in the SA real estate market has come a long way, with almost half of all home loan applications now being made by black buyers, compared with only about 12% a decade ago...


Emigration selling plummeting

A weak developed world economy is keeping emigration selling low‚ and Africa’s improving economic situation may have begun to increase the significance of African-driven foreign buying in SA‚ says John Loos‚ household and property sector strategist at FNB...


'Banks must fund cheap housing'

Banks should be forced to invest in low-cost housing, SA Communist Party secretary general Blade Nzimande said on Thursday...


A new alternative for Commercial Real Estate Small Business Investors

As confidence wavers in the ability of financial institutions to provide an adequate haven for the investment capital of average South Africans, so the need to find strong viable alternatives for one’s savings becomes more urgent...


The interest rate and property

The interest rates have remained at a 30-year low since November 2010 and are likely to stay there a while longer, says Adrian Goslett, CEO of RE/MAX of Southern Africa...


Chas Everitt warms up Mandela Day

To mark Mandela Day, 18 July, the Chas Everitt International property group will be giving away 1000 warm winter blankets to various organisations around the country that care for needy people...


Spend less and afford more

Sobering statistics suggest that most South African consumers are not savers and very often don’t have a financial plan for the future. The country’s current household saving rate is around 16%, which is relatively low when compared to other emerging markets...


Potential home buyers' ability to afford a home has been reduced

The latest FNB segment house price review (for the first quarter of 2012) has shown that a marked slowdown in remuneration package rises has taken place since early 2008 and this has significantly increased the ‘affordability’ gap between average home prices and average wages. According to the FNB review, the gap has widened by 27, 2% since the first quarter in 2008...


Access-controlled office parks - where the money is

Security-focused office parks are set to become increasingly popular – and will generally command higher office rentals and have lower vacancy rates than standalone office blocks, or office parks with a more half-hearted focus on security...


SA property values weather credit crunch

JOHANNESBURG has avoided being struck by the global property crash as its offices, shops and warehouses outperformed those in every global city outside of the country over the last decade.


Turning bad properties into affordable housing

As the City of Tshwane takes steps to deal with "bad buildings", Joburg has taken eight buildings in its inner city and turned them into affordable housing...


Old meets new in innovative redevelopment of SA building

As green building principles increasingly take hold in South Africa we are seeing more and more of our ageing building stock being revitalised and retrofitted...


SA’s best golf estates

Condé Nast Traveler (US) in its recently announced 16th annual golf poll voted Steenberg as the Top Foreign Golf Resort of 2012...


BIG homes in South Africa's academic belts now increasingly used for student accomodation

Much publicity has been given in the South African property media recently to the boom experienced in the last decade or more in rentals of apartments sited close enough to the major universities to make a daily or in some cases a twice daily commute to these places easy and inexpensive...


When a woman buys property but does not change name

In today’s modern world it has become increasingly common for women to keep their own names when getting married and it often happens that women have bought their own homes before marrying...


Be prepared for your property finance

Are you ready for a new home?

Purchasing or selling a property is probably one of the most stressful things you could go through in life, and when it comes to the process, financing and legalities thereof most people become overwhelmed. It includes a lot of terms and forms that you may not be familiar with...


Choose the right rental category when investing in buy to let property

Michael Bauer, general manager of sectional title management company IHFM, has drawn attention to the latest TPN (Tenant Profile Network) report where, according to Stats SA, it mentions that 75% of landlords are actually micro-landlords (own one to ten properties and rent them out)...

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...

>> Properties in Kroonstad
>> Properties in the Free State


Search For Properties

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2. Garden Route
3. Northern Cape
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5. KwaZulu Natal
6. Free State
7. North West
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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;

  • Hermanus
  • Newlands
  • Green Point and Sea Point
In the area 1 - Hermanus

Thriving Hermanus draws more permanent residents

Hermanus, long established as a favourite choice for holiday investors and retirees, is now displaying strong signs of a more sustained economy as the town draws more permanent residents.


In the area 2 - Newlands

Newlands and surrounding areas generating high rentals

The Upper Fernwood precinct, says Tony van der Lith, Rawson Properties’ franchisee for Newlands, Cape Town, has always been the most expensive section in his territory...


In the area 3 - Green Point and Sea Point

It often happens in sectional title schemes that there isn’t complete transparency when it comes to the owners’ and trustees’ contact details, says Michael Bauer, general manager of IHFM, the sectional title management company...


To the editor

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


IEA Western Cape - Celebrating their 75th Anniversary

The Institute of Estate Agents Western Cape in Pinelands is celebrating their 75th Anniversary this year and will host their Annual General Meeting combined with a Dinner Dance on Thursday 23 August 2012 at the Kelvin Grove Club in Newlands at 19:00.

Corporate sponsorships are available at R5000 per table of 10 which includes two free tickets to attend the dance. Further tickets are available at a cost of R380 per person.

“Don’t miss this excellent opportunity for you and your company to be part of this prestigious occasion.”

Please contact Wardah on 021 531 3180 or email wardah@cape.ieasa.org.za to secure your table.


Local news continue

It is the Rental Housing Act - not the Consumer Protection Act - that defines landlords' and tenants' rights

Widespread publicity concerning the Consumer Protection Act, (or the CPA), has led to some inaccurate, often unfortunate perceptions among those who would like to see consumers having greater powers (but who have often not studied the act seriously) - and nowhere is this more true than in the complicated subject of landlord-tenant relationships, says Wayne Albutt, Regional Manager for Rawson Rentals...


Condition report checklist would help cover the seller in terms of the CPA

In terms of the Consumer Protection Act it is very important for a seller of a house to make sure he is covered effectively and for the agent to make sure that everything has been disclosed...


Charges for exclusive use areas in sectional title schemes

One of the issues that often causes difficulties in sectional title schemes is the right to exclusive use of a common area in the scheme and the costs thereof. Should the exclusive use come at an extra cost...


ST Turning a bad building around

It sometimes happens that sectional title buildings encounter problems of mismanagement and become run down, even possibly unsafe in some cases and where the trustees have not taken due care of the management of the building, said Michael Bauer, general manager of IHFM, the sectional title management company...


Value of good governance in ST schemes

“People often don’t realise when they sign up to be trustees in sectional title schemes the responsibility that they hold in terms of the rand value of the scheme. It is not just the value of your unit that you are protecting and managing, it is the value of the whole scheme, i.e. not just the R600 000 value of your flat, but if the scheme has 100 units, it’s actually a R60 million investment you are responsible for,” said Michael Bauer, general manager of IHFM, the sectional title management company...


Transparency needed with contact lists of owners in ST schemes

It often happens in sectional title schemes that there isn’t complete transparency when it comes to the owners’ and trustees’ contact details, says Michael Bauer, general manager of IHFM, the sectional title management company...


AUCOR property auction news

Following a successful Johannesburg launch auction event which saw an excellent turnout of buyers supported by an 80% confirmation rate on the day, Aucor Property has announced...


RE/MAX flouts tough trading conditions with latest figures

While challenging conditions have prevailed in the property market during the first half of 2012, RE/MAX of Southern Africa has seen a marked increase in the number of property sales achieved per agent over the last six months...

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