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Weekly Property News
26 August 2011

Dear Reader

Market players are debating over the possibility of a rate cut reduction in the near future while property owners stay optimistic that the property market will continue with its recovery and are holding thumbs that a rate cut will happen soon.

On the other hand not all is going well with housing prices. Property analysts expect the negative trend in housing prices to continue for another year and even longer. Erwin Rode property economist, Rode & Associates, expects a maximum of 2% per year growth over the next five years.

Do you think that house prices are only returning to more realistic price levels after the quick rise until 2008? Send your viewpoints to news@cyberprop.com

Headlines: As power and water costs rise billing inaccuracy is becoming critical for big listed property investment companies like Growthpoint, now they’re installing their own water and power meters to ensure correct invoicing by municipalities. Speaking on Summit TV Growthpoint CEO Norbert Sasse says this is putting additional pressure on investors. "We are having to install water and electricity meters to ensure we get accurate billing from councils – it’s not been up to scratch and that’s been a bit of a double whammy." Municipal billing hits property stocks

Market news: If housing activity is a barometer of a country’s economic health then SA’s growth outlook appears decidedly grim. According to property portal Lightstone, the number of houses sold across SA plunged to a lowly 7000/month in the second quarter of 2011.That’s down a staggering 82,5% from the boom days when around 40000 residential properties were, typically, sold on a monthly basis, says Lightstone director Andrew Watt. Over the past 12 months alone, housing sales have halved and are now at their lowest level in more than a decade. So talk of banks relaxing their lending criteria has seemingly done nothing to support the ailing housing market. Soft demand for houses will no doubt negatively affect the outlook for house price growth. Property economist Erwin Rode expects house price growth of only 2%/year at most for the next five years. Residential Property - A grim picture

The editor

In This Issue
Featured Property

KwaZulu Natal, Port Edward
: Bed: 2.5 | Bath: 2
Solidly built new holiday home with vaulted rooms, modern atmosphere and resentful surrounds great for family hideout...

CyberProp Property Count: 26/08/2011

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Properties for Sale: 145,316
Properties to Rent: 10,220

Local News

Edcon announces long-term expansion plan

Edcon, the owner of Edgars, Jet, CNA and other businesses, has said that it was formulating a comprehensive long-term real estate expansion plan...

Municipal billing hits property stocks

Investment company Growthpoint posts a 8,1% rise in profit to 131c but they’re also taking unusual steps to ensure correct billing by municipalities...

Rate cut expectations grow

South African prices rose at their fastest pace in 17 months in July, driven by higher food costs, but markets mindful of a worsening global economic outlook continued to factor in more monetary stimulus via a possible interest rate cut...

Residential Property - A grim picture

If housing activity is a barometer of a country’s economic health then SA’s growth outlook appears decidedly grim. According to property portal Lightstone, the number of houses sold across SA plunged to a lowly 7000/month in the second quarter of 2011...

Residential property prices to deteriorate

Should you rent or buy?

Housing prices have been coming down in real terms for much of 2011 and this negative growth trend is something that property analysts expect to continue for at least the rest of the year, probably longer...

First-time buying booming

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...

Opportunities abound even in lean times

If there is one point that the latest highly respected Knight Frank/Citibank Wealth Report has confirmed it is that Ultra High Net Worth Individuals favour only two main channels for their money – their own businesses and property...

Property market on a slow ride back to recovery

The commercial property sector, which has also been hit by the recession, is continuing to show signs of improvement as an increasing number of companies are starting to look for good commercial space. But the ever-present debt problems facing Europe and the USA could put a damper on any sustained recovery...

Low-end drives recovery

The value of recorded building plans passed by larger municipalities increased by almost five percent during January to June 2011 compared with the same period last year, Statistics SA said on Thursday...

Big-ticket buyers spring into action

With the scent of spring in the air, big-ticket homebuyers are back in the market with a bang to take advantage of some of the best investment and upgrading opportunities on offer in this sector for many years...

Flats and townhouses best for first-timers

With interest rates low but credit tight, many young buyers these days are opting to purchase smaller, cheaper houses with the intention of expanding them later...

Increased demand for rental properties

The recent announcement by Tony Clarke, MD of Rawson Properties, that his group will be setting up a new franchise division for rental management - and that these franchises will operate semi-independently both in new territories and alongside Rawson franchise teams (where they do not already have a rental division) - is at least partially the result of a massive upswing in the demand for rented properties, says Gary Claven, the new regional manager of the Rawson rental franchise division...

Do a financial health check

According to the Consumer Credit Report issued by the National Credit Regulator for the first quarter ending March 2011, the total outstanding gross debtors book of consumer credit for the quarter stood at R1,21 trillion representing a quarter-on-quarter growth of 1,86%...

Some more potholes to fill

While the road agencies at last appear to be taking the pothole issue seriously, there are some pitfalls on the road to home ownership that first-time buyers have to fix themselves...

Valuing of property

The property media have done an excellent job in educating and informing the general public on property matters and their increased knowledge has become apparent in the questions they put to agents and the requests they regularly make for carefully researched information to back up the agent’s statements...

Invest wisely and spread the risk

There are very lucrative opportunities for investors in the Cape Flats, south eastern suburbs and surrounding areas, especially for those who intend to hold these properties as rental investments, says Mark Brickles, Broker/Owner of RE/MAX Ultra Select, which operates in those regions as well as Grassy Park, Strandfontein, Mitchells Plain, Lotus River, Ottery and Lansdowne...

Don't show what you don't want to sell

There’s nothing more disappointing than walking into your new home only to find that many of the items you thought were included in the sale – like carpets and light fittings, the gas braai and the satellite dish – have been removed...

The importance school play in buying decision

When considering buying a property one of the most important aspects to think about is location. But what are the elements of a good location and how does it influence a buyer’s decision?

Focus On

Port Edward, KwaZulu-Natal, South Africa

Situated 150 kilometres south of Durban on the edge of the mighty Indian Ocean and amid the lush rolling hills of Southern KwaZulu-Natal, Port Edward is the ultimate holiday destination...

>> Properties in Port Edward
>> Properties in KwaZulu-Natal

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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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Enter City/Suburb:

In the Area

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

  • The Lowveld
  • Centurion
  • Bloemfontein
In the area 1 - The Lowveld

Food shortages are becoming a worldwide concern, with current prices at the highest level in three years – and the situation is no different in South Africa...

In the area 2 - Centurion

Demand for property in Centurion is set for a tremendous boost now that the Gautrain is up and running between Pretoria and Rosebank...

In the area 3 - Bloemfontein

Bloemfontein’s cemetery letting off a stink as the country’s cemeteries fall into decay...

To the editor

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

Local news continue

How to migrate South Africa’s population from lower quality to better quality housing?

With sub-saharan populations set to explode over the next 40 years, how does South Africa’s growth prospects compare?

Cape Town remains no. 1

The second quarter FNB Estate Agent Survey for the City of Cape Town brought about little in the way of fireworks, which isn’t entirely out of kilter with the rest of the country at present...

Someone has to wear the Green Tights

Let’s not pretend that business doesn’t need positive affirmation from the community. Face it; we all like a good pat on the back...

Difficult people in sectional title

Throughout our lives, we deal with people we do not like. After school and work, you can leave those pesky people behind and not have to deal with them in your “down time”. Unfortunately, this is not the case in sectional title: these “pesky people” are often your neighbours or a trustee and you have no option but to deal with them...

ST trustees duties onerous

It is regrettable, but true, that the trustees elected to the bodies corporate often do not understand the relationship that they should have with the members they represent and/or the managing agents they appoint...

Green buildings-the key to climate change mitigation in the lead up to COP17

With the international community poised to arrive in South Africa for the UNFCCC’s 17th Conference of the Parties (COP 17) climate change talks in Durban in December 2011, the Green Building Council of South Africa (GBCSA) is urging South African industry, business and government to work together to achieve the mitigation potential offered by greening our built environment, and thereby set an example for the rest of the world...

Comprehensive new property transaction kit

Dianne Brock, the new general manager of the Western Cape Institute of Estate Agents, has recommended warmly a new computerised property transaction kit, the aim of which is to facilitate the sale and transfer of property in compliance with the stringent criteria of the new Consumer Protection Act...

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In celebration of World Green Building Week (19 – 23 September) which aims to draw attention to the importance of creating greener, healthier, more sustainable buildings and communities...

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