Weekly Property News
24 June 2011


Dear Reader

The property industry must be handled with gloves as analysts anticipate a rate hike in November this year or else in January next year. However a hike in the interest rate is not the only factor.

“In essence, the market moving in a recuperative mode. Some pockets of activity are visible but fragility remains a national constant. In the medium price segment supply remains high while demand is stubbornly soft. In the 12 months to January 2011, 161 000 residential properties worth R140 billion, exchanged hands. This is 35% down on 2007’s numbers when 246,215 properties, worth R211 billion were transacted. Our 12 month moving average price of R869,565 is just about R100k lower than the 2010 average for properties between R300k and R5m. A number of risks to recovery in the market remain. Highly-indebted consumers along with the reality of rate hikes as high as 2% in 2012, leaves a pool of somewhat diffident buyers. Yet many sellers in a financial vice-grip, capitulate after having their house on the market for 4 months, 6 months or longer. Serious bargaining, akin to flea-markets, drives prices down so that less than 15% of sellers achieve their asking prices.” This according to Dieter Deppisch, Head SAPTG/Evalute.

Headlines: South Africa, whose land tenure system has been in the past described as a ticking time bomb, is moving to put controls on foreign access to the resource.
The government is soldiering on with plans to restrict foreign land ownership in the country and to prescribe conditions for land use to keep South Africa's prime land — relatively cheap by international standards — from being snapped up by foreign buyers who can then push prices higher. SA: the land war continues

Market news: There has been a significant increase in the percentage of property purchases being made with cash rather than home loans in the past two years – but not all these buyers are investors snapping up buy-to-let bargains in a down market. “An increasing number,” says Berry Everitt, MD of the Chas Everitt International property group, “are people who have been made extremely debt-averse by the recession and who, with cash in hand from savings, investments or perhaps the sale of an existing property, want to own a bond-free home.” BIY could be next big thing in housing

The editor

In This Issue
Featured Property

KwaZulu Natal, Umhlanga, Suburb La Lucia
- Bed: 5 | Bath: 4
Two homes for the price of one. Swimming pool. Parking for 10 cars

CyberProp Property Count: 24/06/2011

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Properties for Sale: 145,240
Properties to Rent: 10,364

Local News

SA: the land war continues

South Africa, whose land tenure system has been in the past described as a ticking time bomb, is moving to put controls on foreign access to the resource...

BIY could be next big thing in housing

There has been a significant increase in the percentage of property purchases being made with cash rather than home loans in the past two years – but not all these buyers are investors snapping up buy-to-let bargains in a down market...

Apocalypse Now? ( June 2011)

The South African Property Transfer Guide (SAPTG) has decided to leave its Property Clock unchanged this month, at 20 minutes to the hour...

Property market remains conducive to new home buyers

Residential house prices in South Africa fell slightly in May from a year earlier, according to latest statistics recorded by ooba - South Africa's leading bond originator - however, the environment remains conducive to new homebuyers with lenders continuing to relax their lending criteria...

Investors flock to high-yield funds in footrace to resolve distressed assets

Over the past nine months, the newswires have been ablaze with announcements of heavy real estate fundraising from private opportunistic debt and equity investment funds...

Home carnage continues

Ask any estate agent at any time if now is the right time to buy a home and the answer will be affirmative, with all the obvious reasons being offered, such as: it is a buyers' market, rather own your home than rent, the market is turning, it's a good investment, and so on...

Your bond the best place for your savings at the moment

South Africans are always being urged to save more, but with interest rates at the current low levels, there are not many attractive savings options...

Homeownership – Rent or buy?

Estate agent principals, says Tony Clarke, MD of Rawson Properties, have always emphasised the sense of self-worth and stability that owning a home gives to a family, especially one for which this is a new experience - and this, he says, is a wholly valid concept...

Safe as houses – Property as an investment option

Owning a property is a viable investment and has proven over time to be a major factor in the building of personal wealth. Well researched property investments have allowed many savvy buyers to live out the lifestyle of their dreams...

CPA's impact on property

The new Consumer Protection Act (CPA), which came into effect on 1 April 2011, could see property sellers and estate agents exposing themselves to great risk should they attempt to market and sell a property without letting a buyer scrutinise all relevant documentation prior to the signing of a sale agreement...

CPA affects direct marketing

In the real estate world it is an accepted fact that no residential property marketing company will ever flourish if it neglects its stock canvassing...

It pays to keep your home up to par

As a homeowner, you should start a programme of regular maintenance from the day you move in...

RE/MAX One encourage green living

The state of our planet has been a hot topic of conversation in recent years, and there are numerous projects underway in an effort to save Earth....

'Sleeping' with the enemy

For those businesses who prefer not to formally engage tenant representative firms because they choose not to sign formal contracts / agreements, answe rthis...

Eight vital lease clauses

Whether you're a landlord or a tenant, you should have a written lease and make sure it contains certain essential clauses...

Paying interest on levy arrears

The Sectional Title Act states that one of the key functions of a body corporate is to set up a fund for the repair, upkeep, control, management and administration of the common property. For this reason, owners or members are required to make contributions to this fund called levies...

Focus On

Umhlanga, KwaZulu-Natal, South Africa

Umhlanga is one of the most popular beach resort destinations on the east coast of South Africa. The bathing is safe and the warm Indian Ocean waters wash one of the most beautiful coastlines in the world...

>> Properties in Umhlanga
>> Properties in in KwaZulu-Natal

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In the Area

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

  • Plettenberg Bay
  • Cape Town
  • Lakeside
In the area 1 - Plettenberg Bay

Plettenberg Bay is definitely known for its beauty and unspoiled sandy beaches. “Plett”, as it’s known by the locals, is absolute bliss for nature lovers and property investors looking for a tranquil setting among indigenous forests and a mountainous backdrop, says Cheryl Anley, Broker/Owner of RE/MAX Prime Properties, which services the Plettenberg Bay area...

In the area 2 - Cape Town

Cape Town boulevard to be renamed to honour Mandela

Cape Town mayor Patricia de Lille made the announcement to loud applause from the entire council chamber yesterday...

In the area 3 - Lakeside

Security Estate planned for Lakeside

A 17 700m2 erf in Lakeside, nestled immediately below Boyes Drive has recently been subdivided into 22 single unit residential properties that will form part of the Klein Welgemeend Security Estate...

To the editor

Title:South Africa Experiments With Houses Made of Sand
From: Andy Strydom

Any info you may require on SandBag building please refer to www.ecobuilders.co.za

Send your viewpoints to news@cyberprop.com

Local News Continue

Jozi's inner-city renewal on track

Johannesburg's CBD, Braamfontein and Newtown nodes are showing significant evidence of inner-city renewal, with business sentiment and perceptions of the areas improving over the last couple of years...

EAAB faces 'probably the biggest case of fraud' ever

An estimated R20 million to R40m has allegedly been misappropriated by Constantia Sectional Title Managers (CSTM), the managing agent for about 450 bodies corporate of residential complexes in Gauteng...

Capital Gains Tax

Any person buying a South African property valued at R2 million or more from a ‘non-resident’ (i.e. a person who is not an “ordinary resident”) must take note that in terms of Section 35 (a) of the Income Tax Act he, the purchaser, carries full responsibility for seeing that a specified percentage of the purchase price is withheld to cover the Capital Gains Tax on the property...

Informative talks for those interested in becoming estate agents

Dianne Brock, who since February this year has headed up the Western Cape Institute of Estate Agents’ Property Placements Division, has arranged a series of monthly talks introducing those interested in a career in property selling to what the position really involves -and what qualifications are currently necessary...

700 new trees for Motaganeng

As part of its commitment to keep development “green” at the new residential estates in Burgersfort, Cranbrook Property Projects has recently planted hundreds of new indigenous trees...

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