Weekly Property News
19 August 2011

Dear Reader

What are listed properties? Is it wise to venture into listed property? And how do I get to know more about this? These are the main questions we’ve received this week.

In South Africa financial institutions, pension/provident funds including parastatal funds and government are the “owners”. These property holding vehicles are listed on the JSE stock exchange and are largely commercial properties like shopping malls, high and low rise offices and industrial warehouses.

Just like with any other investment the bottom line is that it is not wise to venture into it without obtaining as much knowledge as possible. We’ve placed two articles this week that can help you;

  • Why invest in SA Listed Property
  • Listed Property “set for real growth”

Headlines: Tenant payment behaviour has deteriorated for the first time in 24 months, according to a report by TPN Credit Bureau. Data showed that the overall number of tenants in good standing had declined to 79 percent vs. 81 percent in Q1 of 2011. This consisted of tenants in the paid-on-time category at 66 percent (67 percent Q1 2011) and paid-late category at 13 percent (14 percent Q1 2011). In addition, the number of tenants in the did-not-pay category increased from 10 percent to 12 percent for the first time since the first quarter of last year. More tenants not paying

Market news: Since the first quarter of 2008, when we began to ask agents surveyed in the FNB Estate Agent Survey to provide us with estimates as to the reasons that people sell homes, emigration selling has never been lower than in 2011, when expressed as a percentage of total residential selling. From a peak of 20 percent in the third quarter of 2008, the percentage of residential sellers believed to be emigrating has declined to four percent for both the first and second quarters of 2011. Could it be a relatively positive sentiment towards South Africa from its inhabitants? “Brain drain is slowing”

The editor

In This Issue
Featured Property

Western Cape, Stil Bay
Stilbay Riverfront Game & Sheep farm for sale * 1,2km of riverfront

CyberProp Property Count: 19/08/2011

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Properties for Sale: 144,836
Properties to Rent: 10,024

Local News

Why invest in SA Listed Property?

More people are ploughing money into local real estate units. What makes this an appealing option for investors?

Listed property "set for real growth"

INCOME distributions in the listed property sector are likely to continue showing real growth in the long term, despite the outlook for the factors that influence distributions remaining challenging over the next 12 months, according to the latest report on the listed property sector by Catalyst Fund Managers..

More tenants not paying

Tenant payment behaviour has deteriorated for the first time in 24 months, according to a report by TPN Credit Bureau...

'Brain drain is slowing'

Since the first quarter of 2008, when we began to ask agents surveyed in the FNB Estate Agent Survey to provide us with estimates as to the reasons that people sell homes, emigration selling has never been lower than in 2011, when expressed as a percentage of total residential selling...

More young expats planning a return to SA

Extreme weather conditions and geological events in many parts of the world this year, as well as prolonged political protests, huge financial upheavals and declining employment opportunities in the US, UK and across Europe are prompting many expats to make plans to return to SA...

Is property a dead industry or an investment?

Paul Stewart argues we are closer to the period of time when property will underperform...

Good reasons for buying into property are still valid

People,” commented the 18th Century essayist, Samuel Johnson, “need to be reminded more often than they need to be instructed,” – and this is nowhere more true than in simple investment matters, says Tony Clarke, MD of Rawson Properties...

Good office space prospects going forward

Office space is a sensible investment going forward, according to Ervin Rode, CEO of Rode & Associates...

Rise in first time homebuyers in South Africa

Those looking for positive data about the South African residential property market, says Rawson Properties Director, Sean McCauley, should take note of what the latest FNB Property Barometer says about the rise in the number of first time homebuyers...

Swing back to sectional title property

With the stock markets dropping 15% in two weeks – then bouncing back, only to drop and rise again, manufacturing and mining output down, and with major SA corporations cutting staff, there has just recently, says Catherine Cockcroft, sales manager of Propell, the sectional title levy funding company, been a discernible swing back to sectional title property...

More people, more opportunity

With a new national census in the offing, the trends inherent in the latest population estimates released by StatsSA already spell good opportunities that some clever property developers and investors have started to scent...

Home loan interest rates 'already higher'

If you’re planning to buy a home, do it now, because home loan interest rates are effectively already rising...

Reverse mortgages

Throughout the western world government strategists, banks, insurance companies and other organisations are grappling with the baby boomer “problem”, i.e. the sudden rise in the number of births that took place from the end of World War II to 1960’s and the consequent large numbers of people now retired or due for retirement, only a small percentage of whom actually have the resources to live comfortably without salaries...

Joburg's multi billion facelift

The Joburg city skyline is set to change following a decision to build decking over the railway lines that serve as divides in areas around the city...

'Take the money and run

If you receive a good offer for your home shortly after you have listed it for sale, you should consider it very seriously, even if it isn’t perfect...

Thuli visits iffy houses

Apparent widespread housing problems within the Umgungundlovu District in KwaZulu-Natal will form part of Public Protector Adv Thuli Madonsela's current systemic investigation into social housing...

Online auction for exceptional N’Dabeni investment property

GoIndustry DoveBid SA (Pty) Limited will be auctioning 16 Old Mill Road in N’Dabeni, one of Cape Town’s premier industrial areas...

The only way to deal with a non-paying tenant is through the law courts

Although it can be time-consuming, the only permissible way to deal with a non-paying tenant is through the law courts, says attorney spokesman...

Stilus Levy Guarantee Insurance Policy and Administrators

Administrators are invariably endeavoring to give their members a competitive edge with insurance policies they can be proud to offer...

MalaMala wants R900-million

MalaMala, the world-renowned game reserve, is involved in a land-claim dispute that could determine the future of government's land-reform programme...

Good future ahead for estate agents

The “Taking of skills beyond 2010” seminar organised in Cape Town (and other parts of the country) by Services SETA’s acting CEO, Dr Sihle Moon, has, says Dianne Brock, the new head of the Western Cape Institute of Estate Agents, SA, charted a “positive and optimistic” course ahead for South Africa’s residential property sector...

Focus On

Stilbaai, Western Cape, South Africa

The treasure of nature unique to Still Bay (Stilbaai) has attracted visitors to this Bay of Sleeping Beauty for centuries. The unique limestone area with its abundance of natural springs, provided the ideal habitat for ancient man, whose footprints still linger here...

>> Properties in Stilbaai
>> Properties in the Western Cape

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In the Area

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

  • Green Point
  • Pretoria East
  • Western Seaboard
In the area 1 - Green Point

Green Point residential areas will benefit from upgrade of old stadium

The Cape Town City Council’s recent announcement that the original older Green Point stadium, athletics track and clubhouses, parts of which were demolished to make way for the new, highly sophisticated World Cup stadium, will be upgraded to become a 5 500 seater IAAF-standard sports stadium and multi-use facility, is positive news...

In the area 2 - Pretoria East

Relaunch of Lombardy East Project has elicited a good response, say Kharafi Group

The recent re-launch of the 100ha Lombardy Estate and Health Spa development in Pretoria East has led to a renewed interest from the market, and an impressive upswing in sales, says Greg Dart, Business Development manager of Kharafi Holdings in Pretoria...

In the area 3 - Western Seaboard

Propstats figures show that Blaauwberg, Table View and Parklands house prices now on a recovery path

A prediction made almost a year ago by Annette Evans, manager of the Western Cape Institute of Estate Agent’s statistical analysis division, PropStats, that Cape Town’s Western Seaboard properties, Table View, Parklands, Flamingo Vlei, Milnerton and Blaauwberg in particular, will be among the first to recover from the current downturn is beginning to be realised...

To the editor

Dear editor;

Lack of knowledge and misunderstandings about sectional title levy collection

I refer to the article above and seek advice, when our roles are reversed.

Initially I occupied a Sectional Title unit, which had rodents in the ceiling, that had to be fumigated by the Body Corporate, escalated to the Managing Agents. After many (6months), attempts to resolved, I eventually resorted to withholding the payment of my levies, in order to seek attention. Two months later, the problem was attended, to. However now I have rented the property but have been billed for “levies in arrears”. Since the incident almost a year ago, I have religiously paid the levies. I have all relevant emails as proof of correspondence, however Seniors of our Managing Agents refused to take responsibility of their incompetence.

I await your response

Warm Regards

From the editor:

Thank you for your email.

I’m glad that you find our newsletter informative.

Regarding the article, unfortunately you are by law not allowed to withheld levy payments however you can take legal action against the corporate body.

Follow this link for a previous article that was placed...

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