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Weekly Property News
29 October, 2010

Dear Reader

"After climbing a great hill, one only finds that there are many more hills to climb!" These are words from Madiba, former President Nelson Mandela. I find these words so true when I look at the property market over the few years. Although there are globally tentative signs for recovery it is still a path full of hills. As home owners we can just continue our climb.

Headlines: According to the FNB House Price Index, year-on-year price increases are slowing again after a brief respite earlier in 2010. In the third quarter the average house price increased by seven percent on a year-on-year basis, down from 11.3 percent in the previous quarter. The picture was slightly better than the national average in the Full Title Market, with the Full Title Index recording third quarter year-on-year increases of 8.7 percent. However, the overall index was dragged down somewhat by the Sectional Title Market, with the Sectional Title Index increasing by a slower 3.9 percent. Home prices falling again

Market news: The global financial crisis had less of an impact in South Africa than on many developing countries. Growth had already been slowing in 2008, and the economy contracted 1.8% in 2009. The authors think it is reasonable to suggest GDP will expand 4-5% annually from 2011 to 2014. However, this depends on continuing Chinese demand for South African mineral exports. Research and Markets: South Africa Real Estate Report Q4 2010

The editor

In This Issue
Featured Property

KwaZulu Natal, St Lucia
Guest House: Wonderful African style guesthouse nestled in tropical gardens and surrounded by ponds and water features. Air-conditioned luxurious bedrooms all with ensuite bathrooms, safes, dryers, television and quality hardwood furniture...

Local News

Research and Markets: South Africa Real Estate Report Q4 2010

Key Insights on the Real Estate Sector In South Africa

The global financial crisis had less of an impact in South Africa than on many developing countries. Growth had already been slowing in 2008, and the economy contracted 1.8% in 2009...

SA property beating Europe

The South African property market is "way ahead" of European markets, Auction Alliance says.

This followed the attendance of CEO Rael Levitt at a recent commercial property conference held in central London...

Home prices falling again

According to the FNB House Price Index, year-on-year price increases are slowing again after a brief respite earlier in 2010...

Firm rand spurs interest in offshore property

The firmer rand has provided impetus for South Africans to buy offshore properties in an attempt to diversify their investment portfolios, say property agents...

Property sales figures continue to climb

September has been the best sales month so far this year for RE/MAX of Southern Africa, according to the company’s CEO, Adrian Goslett...

Foreign investors eye South African real estate

At a recent commercial property conference held in central London, a strong focus was taken on distressed property markets, whereby it was confirmed that advanced countries would still see pain in their property markets for some time but developing economies would strongly outperform sluggish northern hemisphere nations...

There’s a great future in micro-franchising

For many matriculants and students, this is a worrying time of year – not only because of exams but also because their employment prospects are poor even after they have qualified, and they are desperately wondering how they will make a living in future...

'No more pondokkies'

A total of 8700 human settlement projects are currently underway across the country in a bid to eradicate "ugly little pondokkies" (shacks), according to Human Settlements Minister Tokyo Sexwale...

Investors should hang onto their properties

The recent announcement by Absa Banks property analysts that they foresee a marked slowdown in the growth rate of most South African housing (the exception being homes in the affordable brackets) has, says Tony Clarke, MD of Rawson Properties, led to enquiries from a handful of Rawson’s buy-to-rent landlords – one or two of whom are now considering opting out...

In defence of deposits…

Homebuyers may be complaining now about having to save up deposits of 10% or even 20%, but they’ll probably be glad they did after next year, when interest rates and home loan repayments may well increase...

The impact of global trends on local Real Estate

Peter Gilmour, Chairman of RE/MAX of Southern Africa, considers the phenomenon of globalisation in the context of real estate, illustrating that global trends have a significant impact on our local property market...

Advice to bond applicants

With the interest rates at their lowest levels for some 30 years (the nearest we have recently come to the current levels was in April 2005 when the rate was 10.5%), home buying looks very attractive - and, says his group is witnessing a much stronger demand and a renewed willingness to consider homeownership...

Successful young entrepreneurs advised to diversity into property

In South Africa today young qualified people with management aspirations are finding it increasingly hard to land the secure pension-paying (but possibly unexciting) jobs in the big corporations that often gave their fathers and grandfathers a steady income...

News from Grant Gunston Attorneys

Consumer Protection Act will impose new responsibilities on estate agents

Estate agents across the country have been concerned about the new responsibilities that will be imposed on them by the Consumer Protection Act (due for finalisation in March/April 2011) and it is clear now, says Grant Gunston, senior director of Grant Gunston Attorneys, that agents will, as “links in the supply chain” be held accountable for...

CyberProp Property Count: 29/10/2010

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Properties for Sale: 147,527
Properties to Rent: 10,607

Focus On

St Lucia, KwaZulu Natal, South Africa

iSimangaliso Wetland Park

A very special slice of Africa, the iSimangaliso Wetland Park (previously St Lucia Wetland Park) offers ecotourists some of the most diverse wildlife and outdoor experiences imaginable...

>> Property in St Lucia
>> Property in Kwazulu Natal

Search For Properties

1. Western Cape
2. Garden Route
3. Northern Cape
4. Eastern Cape
5. KwaZulu Natal
6. Free State
7. North West
8. Gauteng
9. Mpumalanga
10. Limpopo

Search for property in your area

Enter City/Suburb:

In the Area

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

  • Johannesburg
  • Irene
  • East London
In the area 1 - Johannesburg

Gautrain homes volatile

Growth in property prices within two kilometres of Gautrain stations in Johannesburg and Tshwane remains volatile, consulting firm Lightstone said on Tuesday...

In the area 2 - Irene

Irene business hub poised to grow

Besides the fact that two large property developers - Irene Land Corporation and M & T Developments - are poised to turn Irene into the next business hub in Pretoria, after Centurion and Menlyn, the areas roadworks are being upgraded at a rapid rate...

In the area 3 - East London

Upgraded airport a boost for E.London

The East London Airport has officially opened its upgraded terminal, with stakeholders hailing the development as an economic boost for the city...

To the editor

Dear Editor,

I would like to know how to go about transferring a property I own into my sons name either by donation, selling
of giving the property to him. (this will depend on the tax implications I guess?)

  • Do I need to use the services of a solicitor?
  • Can I go directly to the Deeds office in Cape Town and do the process myself?
  • Approximately how much will this all cost?

Many thanks,
Mike J Hancock

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

Sectional title news

Dismissing a sectional title trustee

One of the reasons why an efficient property management agent can be so essential to a sectional title scheme is that he can guide trustees in such a way that they avoid conflict with either the members or with each other...

When trustees resign remainder have to comprise a legal quorum

Many trustees of sectional title schemes are not aware that if some trustees resign, those left running the body corporate, in terms of the Prescribed Management Rule 16, have to be able to form a quorum to conduct business on behalf of the body corporate–and the minimum number required even on the smallest schemes is two trustees or 50% of the originally elected trustees...

Shortage of sectional title and developers should involve managing agents

It is no secret that, although demand for sectional title properties, especially those priced at ±R500 000 or less, is at an all time high, property developers are having great difficulty bringing such property developments to the launch stage...

NQF qualifications necessary for managing agents

Managing agents of sectional title schemes will, like estate agents and estate agency principals have to be in possession of NQF4 and NQF5 qualifications by the end of 2011 if they want their Fidelity Fund Certificates renewed (without these certificates they cannot operate legally)...

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