Property News
A survey completed by the Institute of Estate Agents of South Africa (IEASA) has revealed a number of interesting facts about estate agents and the local property market, which has under gone a few changes recently.
Over the past five years the number on registered black estate agents in South Africa has more than doubled.
“In real terms the increase means that the number of black agents registered has risen from about 2000 to around 4200,” says Dr Willie Marais, national president of the IEASA “and we are delighted at this growth, which we see as an important sign that the residential property market overall is becoming more integrated”.
The survey also recorded certain demographics of agents and agencies, their business activities and technology usage.
This revealed among other things that the typical SA agent is aged between 35 and 55 (54%); married with two children (72%) and earns R13 000 or less a month (54%).
More details of the survey are expected to be released over the next few weeks.
Category : Property News
Property News and Trends: Property prices have reached the turning point
Local News channels have been consistent in their reports on the current condition of the South African property market recently. And, while their figures may differ, the banks’ various house price indexes are showing that we have reached a turning point.
Of all the house prices stats Lightstone has the most positive data, showing that prices have increased for four consecutive months since January 09.
“Although Lightstone’s National Repeat Sales house price inflation is still slightly negative year on year, it appears that the House Price Index bottomed out at the beginning of 2009 and that house prices are actually now on a modest upward trend.” read more…
On Wednesday 02 September, bond originator ooba stated that mortgage approvals had increase by 36% from April 09 to August 09.
According to a statement made by ooba on Wednesday, there were definite signs that the property market slump was coming to an end with data pointing to early signs of a market recovery. read more…
And the latest FNB House Price stats confirm that we have reached the bottom of the trend and can begin to see a clear rise if prices by early 2010
“The FNB House Price Index’s year-on-year decline continued in August, but for the second successive month we saw a diminishing price deflation rate, with the index starting to show clearer signs that the market is starting to stabilise,” said John Loos, property strategist at FNB. read more…
Category : Property News
The past few weeks has produced some very interesting news regarding the South African property market. Here’s a short round up of what been happening.
Interest Rates:
Let’s start with the most recent interest rate announcement. The South African Reserve Bank (SARB) surprised everyone when it announced that rates will remain unchanged. Clearly the SARB is beginning to feel the pressure of high inflation levels. The Prime Interest Rate stays at 11%.
Click here for a graphical illustration of how interest rates have changed.
House Prices:
While FNB Home Loans are reporting that average house prices are dropping by about 2% month-on-month, ooba’s figures show that property prices are actually increasing.
Ooba’s own house price index, the oobarometer, actually reported a 1.2% year-on-year increase in house prices.
The average purchase price according to the oobarometer is R774 449 in June 2008, compared to R784 427 in June 2009.
Trends:
The South African Property Transfer Guide reported that cash purchases are also increasing as a percentage of total property sales. This may due to the fact that many potential buyers are unable to source the finance needed to purchase a new property, causing the shift in the ratio of bonded sales to cash sales.
Advice:
Today Kevin Mountjoy of Bond Choice was quoted as saying, “the time for purchasing property has never been more advantageous”.
Mountjoy points out that property values at the 2006 levels and interest rates are at levels last seen during the 1980s.
Category : Property News &Property Tips
Property News and Trends: 2010 Fifa World Cup Accommodation
Real Estate Group, Seeff, and Supersport presenter, Gary Bailey, are teaming up to help homeowners rent out their properties during the 2010 Fifa World Cup.
About R1 billion will be spent on accommodation and according to Seeff there is a shortage of over 65 000 beds in Gauteng alone. Shortfalls still exist in most major cities and in smaller cities such as Port Elizabeth (15 000 beds), Polokwane (5 000), Rustenberg (5 000), Bloemfontein (14 000) and Nelspruit (13 000).
This is expected to be a welcome boost to a struggling property industry as homeowners could expect rental incomes of about R1000 per night on average during the 30 day soccer festival.
Between 250 000 and 400 000 visitors are expected during the time around the world cup – this is ten times more than the Rugby World Cup!
In terms of this joint venture, Gary Bailey will, through his own network channels, refer all requests for residential accommodation to Seeff Properties. And Homeowners wishing to let their properties can contact the Seeff offices in their areas.
Properties closest to the Soccer Stadiums around the country are expected to snap up the first booking and secure higher rates.
Even at this early stage, Seeff has signed up a number of properties and has let many – including one in Cape Town for R13 000 per day!
[via realestateweb]
Category : Property News &Rental Property
SA Property News: Market set to rebound by 2010
Predictions of a turn-around in the local property market are beginning to surface from an increasing number of Real Estate groups.
The latest of which has been Colliers International, who came out this week predicting that the SA residential property market will rebound by 2010.
The group is basing this prediction on a real estate clock which was developed in 1933. Sanett Uys, director of Colliers International explains that, property markets go “through cycles like any other and follows patterns”.
These cycles usually last for about 7 to 9 years, but each country and city has its unique cycle.
Uys points out that, property is a long-term investment, investors should ride the low end of the curve and focus on positive capital appreciation in 2010.
Meanwhile, demand for rental properties has increased, which has helped to attract more buyers to the market.
“FNB reports that 59 percent of all properties available for rent are let in less than a month,” he said adding that the greatest demand for rental properties is in the lower.
Earlier, Rawson Properties predicted that interest rates would be cut in the near future, which will signal the beginning of the turn-around.
Category : Property News &Rawson Properties &Rental Property
Register today for DSTV’s new Property Training and Educational Channel
Re/max, South Africa’s largest real-estate group, have launched the countries first every Property Training and Educational Channel – called RE/MAX OPEN/TIME.
Starting November 5, the DSTV training channel will broadcast compelling training content for all South African Property Professionals through the Remax Global Education Center.
The Educational Channel is free to all DSTV Premium, Compact and Select subscribers, but you need to register by November 4, 2008.
The RE/MAX OPEN/TIME service will broadcast every Wednesday morning at 09:00 CAT and then again at 18:00 CAT for the month of November for an hour during each transmission slot.
The channel promises to empower, enhance and compliment the marketing, sales and management skills of South African real-estate and property professionals affected by the changing market.
Programming will include a mix of professional and cutting-edge educational, training and motivational shows relevant to the current South African property market situation.
For more information on this free training service visit RealEstateTVsa.co.za
Category : Property News &Remax Properties
Property News and Trends:
Tony Clarke, MD of the Rawson Property Groups, predicts a 2.5% cut in interest rates by mid 2009, starting this December.
In September, Rawson recorded their best sales figures for the past 11 months. This Tony Clarke, MD of the Rawson Property Group, believes indicates that the South African Market is on the path to recovery.
Clarke points out that the SARB’s (SA Reserve Bank) decision to hold rates at their current level, a drop in inflation and the oil price, could mean that an interest rate cut is on the horizon.
In fact, he expects rates to drop by much as 2.5% in 2009 to 13%, with the first rate cut as soon as December 2008.
For homeowners with a bond of R1mil, a drop of 0.5% in the prime lending rate would equal a monthly saving of about R400. And if rates drop from 15.5% to 13% you would save about R1800 per month.
The local property market remains tough though, with 88% of homes selling below their asking prices, and homes taking about 5 months to sell – on average.
But Clarke expects the South African property market to have the “ride of a lifetime” in 2009.
[via the Independence Blog]
Category : Property News &Rawson Properties
SA Property news: 2010 FIFA World Cup
Owners could raise their rents eight-fold during the tournament
Despite the 2010 FIFA World Cup being about 1000 days away, property owners are already gearing up for the month long event.
“There is no doubt that people will make fair amounts of money,” Michael van der Westhuizen of the Rawson property agency told AFP.
“Many people are buying property with a view to climbing on that bandwagon.”
The upper end of the residential market has already begun to see an increase in demand, as enquiries about rental properties for the World Cup begins trickling in from abroad.
Property experts believe that many people are buying properties with the added aim of renting them out for the World Cup. Property investors could expect to ask up to eight times their normal rent.
Cape Town, with its world-renowned Table Mountain, beautiful beaches, lush winelands and historic Robben Island, is South Africa’s most visited tourist destination and will host one of the World Cup semi-finals in its new 68,000-seater Green Point Stadium.
Nick Ball, owner of upmarket property agency Cape Villas, said property owners in the Cape Town’s upmarket Camps Bay area, expected to be a favoured spot for World Cup visitors, normally got an eight percent rental return on their property value per year that figure is expected to reach 20 percent during the 2010 Soccer World Cup.
Category : Property News
The dual effect of raising interest rates and ever increasing property prices means that South African households will now have to earn around R36 000/pm to afford an average sized house.
According to ABSA’s latest house price data an average sized home will now cost you about R920 000.
Since the implementation of the National Credit Act (NCA) banks will only grant you a home loan if your total disposable income is equal to the monthly bond repayments. That mean you’ll need about R10 793/pm as disposable income every month to qualify for a bond of R920 000 over 20years and an interest rate of 13%.
Previously, banks would consider offering bonds up to 30% of your monthly income which would mean that you’ll need a joint income of around R36 000/pm.
Absa senior economist Jacques du Toit says the latest interest rate hike will no doubt place further pressure on housing affordability, especially for first time buyers in the low and middle-income groups. Says Du Toit: “Consumers’ spending power has already been eroded by sharply higher fuel and food prices in recent months.â€
Though house prices are up 15,7% in the first five months of 2007, Du Toit expects growth to slow over the next few months with average growth of around 14% forecast for 2007.
Category : National Credit Act &Property News
Property News: Property Prices
SA Property experts are noticing a substancial drop in the growth of property prices. House price growth peaked at 35% year on year in 2005, but this figure has since dropped to about 7% recently.
Interest Rates have been a key ingredient in the slow down on of the local property market. New buyers are being scared off by high property prices and increasing affordability problems when applying for New Home Loans.
According to Standard Bank economist Elna Moolman, a slowdown in consumer spending would eventually give the Reserve Bank reason to limit further interest rate hikes this year.
Moolman added that waning investor appetite for buy-to-let residential properties, combined with constrained demand and finances from owner occupants, meant that a slowdown in the market was inevitable.
Speaking to told The Mercury newspaper Maxprop MD Gordon Battersby said: “The market has definitely tightened across the board. We are still getting first-time buyers, but not as many as we had six months ago.”
More Property News…
Category : Property News
SA Property News:
South Africa saw the highest property returns in the period between 2001 and 2005, according to new research.
The South Africa’s return in Rand terms stood at 30.1 percent, while Ireland came in second place with 24.5 percent, the Investment Property Databank (IPD) International Global Index reveals.
Returns in South Africa and Ireland were prominent when compared to the worldwide average of 15.5 percent.
Property returns were also over 20 percent in the US, the Sunday Times reports.
After currency conversion, Canada was found to be in first place, with the US and South Africa following behind.
Category : Property News
Property News: Repossessed Properties
In recent years South Africa has enjoyed one of the highest rates of property price growth in the world, but the down side of this is that it’s getting tougher to find an affordable new home.
One avenue buyers often choose to explore when looking for affordable houses for sale are Bank Repossessed Properties. A bank repossessed home offers buyers a cheaper alternative, and you can find quite a few bargains in the Property Repo Market.
But the number of Bank Repo properties has dropped to its lowest level ever.
Currently, Absa, Standard Bank and FNB hold nearly 700 properties in possession (PIPs), while Nedbank has none for sale, but this could change with drastic interest rate hikes.
ABSA currently has 321 repossessed properties, which are valued at nearly R29m, less than 0,02% of its total mortgage advances of R155bn. “This is lowest number of properties in possession (PIPs) ever held by the bank,” said Frik van Rensburg, national manager of repossessed assets for Absa real estate management.
Standard Bank had just over 7 000 properties in possession in 1999, currently it holds only 180 properties.
FNB holds eight PIPs which is far less than the 8000 it held in 1999.
The banks maintained that the sharp escalation of interest rates in 1998 caused unexpected expenses to impact on affordability and rendering the customer unable to meet monthly bond payments.
Category : Property News &Repossessed Houses