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Property market set to shine
Friday, August 31, 2007 (205 reads)
The South African economy is expected to show growth of 4.5 per cent to five per cent p.a. over the next 18 months. This is likely to drive demand for office space; however supply will remain constrained while vacancies are coming down.
Property Fund, explains: 'Sustained economic growth at this level will have a definite impact on demand for office space which will drive rentals upwards.' However, he says that the main question remains how rapidly demand will or can be satisfied by new developments.
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Declines now being experienced in the US, UK and Europe
Thursday, August 30, 2007 (200 reads)
When earlier this year Sam Zell, one of the USA’s highest profile property investors, sold his REIT Equity Office, to Blackstone, the world’s largest private equity company, for a record price of $40-billion, more than one analyst commented that Zell had timed his exit perfectly.
They suggested he had sold when the market had hit its high point, from which, they predicted, higher interest rates and oversupply would bring about a decline in the value of all listed property stocks.
This negative view was strengthened by Zell’s other potential buyer, Steve Ratner, CEO of Vornado who says that he was grateful not to have become embroiled in a trading war. The price paid, which will give a yield on capital of only four per cent, was, he said, high in view of the prospects now facing listed property funds.
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Buy to let market
Wednesday, August 29, 2007 (194 reads)
The latest FNB Residential Property Barometer reflects 4 headline trends:
- Sellers continue to settle for less
- Properties remain in the market for 10 weeks on average
- Buy to let market continues to decline
- Professionals upbeat on outlook post NCA hiccup
It shows that properties bought with a letting objective continue on a downward trend with only 12% of properties being bought to let. This has largely followed the trend in the property market as a whole. At the height of the boom, around 28% of properties were bought to let.
Is this good or bad news for investors?
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Economic comment-Nedbank
Wednesday, August 29, 2007 (85 reads)
Gdp growth eased slightly, but came out above market expectations of a 4,2% seasonally adjusted annualised increase and our own forecast of a 4,4% rise. The economy continued to expand at a relatively healthy pace, rising by 4,5% q-o-q. Most sectors grew at a slightly slower pace compared with the first
.
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Rate rises drive out speculators
Tuesday, August 28, 2007 (203 reads)
Interest rate increases, including the latest 50 basis points rise announced by the Reserve Bank, may finally eliminate the speculative element from the property market.
"This is a welcome development as far as I'm concerned in that speculation was fuelling unhealthy increases in values at the height of the property boom," says Gerhard Kotze, CEO of the ERA property group.
"This had the effect of making a great deal of money for some but making property affordability increasingly less possible for many others.
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Property tip of the Day
Monday, August 27, 2007 (191 reads)
10 tips to help you select the right tenant for your property.
Most landlord hassles can be avoided by just finding the right tenant in the first place. Whether it’s your home or an investment property, finding a good tenant is the key to successful renting.
It can be stressful enough looking for someone to fill the position, but the stress is nothing compared to the hassle of trying to get rid of a nightmare tenant. Rather do it properly the first time, even if it takes a little longer than you’d like it to, but don’t settle on someone you are not one hundred percent happy with.
To prevent misunderstandings and avoid making an expensive mistake, here are some basic steps to guide you through the process:
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Division multiplies fortunes in pricey Sandhurst
Friday, August 24, 2007 (186 reads)
Sunday Times
Seven years ago, pensioner Josephine Meintjes visited Sandhurst and splashed out R7-million on an 11-000m2 estate. Five years later she subdivided the estate into four properties, built three ultra modern mansions and sold them for 15-million each.
A shortage of properties has turned subdivision into a bonanza for owners and investors. Figures provided by The Knowledge Factory show R2-billion in residential real estate transactions in Sandhurst in two years, far eclipsing any sought after addresses in the country.
Wayne Gosher, an agent with Jawitz Properties, said that in the past five years there’s been quite a lot of wealth being made in the country and people want to invest their money in prime real estate. Estate agents and developers have conceded that there isn’t room for them in the country’s priciest suburb.
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Investors: Take slumlords to task
Thursday, August 23, 2007 (202 reads)
Private sector investors, tired of the ongoing decay within their neighbourhoods, have called on local authorities to take stronger actions against inner city slumlords that essentially hold them to promises made regarding rejuvenation.
Andrew Schaefer, managing director of the national residential letting and property management group Trafalgar, says despite municipalities struggling against diminished expertise and resources, it was not in the cities' best interests to allow aging infrastructure to continue deteriorating. Slumlords are also not investing in their properties – often despite promises and tax rebates for upgrading ailing buildings – in a move that is having a substantial impact on surrounding neighbourhoods and blocks.
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LATEST PROPERTY OUTLOOK
Wednesday, August 22, 2007 (212 reads)
Researcher for Pam Golding Properties, Stuart Murray says: "Although the South African residential property market has slowed since the heady days of the past few years, house price growth continues to outpace inflation, while certain geographical areas and price segments continue to show surprisingly strong growth above the national average."
The Residential Property Indices Report articulates these sentiments. The report, launched by Lightstone Risk Management and compiled by John Loos, property strategist at FNB Commercial, reports that freehold price inflation has been outstripping that of sectional title properties.
The report comments: “Freehold consistently had a higher national inflation rate than sectional title from 2000 to 2006, with a cumulative inflation rate of 343%, while the sectional title index managed only 207% over the period.”
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Developers await final decisions on inclusionary housing policy
Tuesday, August 21, 2007 (209 reads)
After months of waiting, South African developers will soon be hearing the final outcome on the national housing department’s policy on inclusionary housing.
The proposed final draft of the government’s policy on inclusionary housing is currently being negotiated between the housing department, commercial property association SAPOA (South African Property Owners Association) and other industry stakeholders, and its results are imminent.
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