2009 GREAT TIME
TO BUY
Tide Turns for Home Owners
in 2010 |
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RESIDENTIAL
LIFESTYLE PROPERTIES FOR SALE IN SOUTH
AFRICA: |
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PROPERTY
OUTLOOK
The Sun
also Rises
At last the climate has improved
for the South African housing
market. There is increased
activity, a new mood of optimism,
interest rates are falling.
The million dollar question
is: Time to Buy? |
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GENERAL
COMMENT
By Dr
Andrew Golding, CE of the Pam Golding
Property Group |
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"The
forthcoming Monetary Policy
Committee meeting will
hopefully see some additional
relief afforded to consumers
in terms of a further
reduction in the repo
rate, with a resultant
drop in the interest rate,"
says Dr Andrew Golding,
chief executive of the
Pam Golding Property (PGP)
group.
"With more
rate cuts anticipated
during 2009,
whether these translate
into a total interest
rate reduction for the
year of three, four or
even five percent. There
is no doubt that, while
these will take time to
flow through the system,
the immediate effect will
be to stimulate more positive
sentiment, which is always
a key driver in the marketplace
and for the economy in
general. |
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“Naturally such rate cuts
will also help alleviate the
pressure on those paying mortgages
on their homes and help increase
affordability for those seeking
to acquire their first homes.
"The current status
quo as far as the
residential property market
is concerned is that of an
air of increased optimism.
The start of each calendar year
generally tends to have increased
transactional movement in the
residential market – particularly
among those relocating for business
reasons.
“Although there are currently
less overseas buyers than usually
evident at this time of the
year, we are still receiving
enquiries from interested foreign
buyers – including South
African expatriates –
as they perceive increased value
in our property market, with
sound investment opportunities
currently available.
 |
"We
are also seeing an increase
in the number of buyers
prepared to commit to
offers as buyers and sellers
have become relatively
more acclimatised to the
current economic scenario
and more stringent lending
criteria.
“However, it has
become apparent that the
general requirement by
financial institutions
of at least a 10% deposit
for the purchase of a
home is creating major
constraints - particularly
for first time buyers
- with the knock-on effect
of sustaining reduced
transactional volumes.
Generally and unsurprisingly,
we also note a trend towards
more cash deals as opposed
to mortgage-financed sales
in transactions than previously. |
"From a residential
property pricing perspective,
we anticipate that house prices
are likely to decline this year
(2009) by approximately 10%
- in real terms, with the start
of a recovery probable towards
the end of 2009. However, with
increased positive sentiment
we also expect transaction volumes
(units) to increase by around
15% over 2008." |
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For
further information
contact Dr Andrew Golding
at 021 710 1700.
Issued by Gaye
de Villiers Tel: 021
683 7788 or 083 325
1939 |
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2009
BUDGET COMMENT
Dr Andrew
Golding, CE of the Pam Golding Property
Group |
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Once
again the Minister of
Finance is to be commended
on presenting a Budget
that focuses on key
issues, which include
sustaining economic
and employment growth,
promoting investment,
increasing investment
in infrastructure, fighting
crime, alleviating poverty
and fostering fiscal
sustainability, despite
the deteriorating global
scenario. In addition,
the personal tax relief
is to be welcomed in
terms of increasing
take-home pay for cash-strapped
consumers.
Ongoing investment in
infrastructure, including
roads, public transport
and housing programmes
is positive, as are
steps to encourage energy
efficiency and reduce
harmful emissions, with
tax incentives for companies
to invest in energy-efficient |
technology
such as investment in green
buildings.
It
is regrettable that
the fuel levies are
to increase by 23
and 24 cents per litre
in respect of general
petrol and diesel
levies, in addition
to the 17.5 cents
increase in the road
accident fund levy,
as fuel remains a
significant cost factor
for South Africans
and the economy.
Turning to property
specifically,
the Minister is to
be lauded for encouraging
banks to extend credit
to worthy customers
as it has become apparent
that generally, financial
institutions are currently
going beyond even
the bounds of the
stringent NCA regulations. |
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It is disappointing that
the much hoped for increase
in the transfer duty threshold
- which currently stands
at R500 000 - did not materialise.
Increasing this to R750
000 or more would have had
the effect of considerably
contributing towards making
home ownership more affordable
and within the reach of
consumers, particularly
first time buyers.
This would be a reasonable
request given the fact that,
despite the current status
of the property market,
the cost of acquiring a
home has increased significantly.
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For
further information
contact Dr Andrew Golding
at 021 710 1700.
Issued by Gaye
de Villiers Tel: 021
683 7788 or 083 325
1939 |
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| MOOD
OF OPTIMISM, SAYS PGP KZN |
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Pam Golding Properties KwaZulu-Natal
region is optimistic about the
residential property market
place.
Carol Reynolds, manager
of PGP's Durban office
says: "We perceive a new
mood out there –
one which is more realistic
in terms of sellers'
expectations, while
buyers are
also being more realistic
in terms of looking at properties
which they can afford and also
ensuring they are pre-qualified
for finance.
“This is coupled with
anticipation of interest rate
reductions during the course
of 2009, which are expected
to have a positive effect on
the market in general. Along
with a greater understanding
of the current status quo in
the marketplace, there's a more
buoyed sentiment out there,
underpinned by a realisation
of the sound long-term investment
value of solid bricks and mortar.
 |
"In
addition, we are finding
that the tougher economic
conditions have seen reputable
agencies with professional
agents coming to the fore,
with the new curriculum
for estate agents also
having a positive impact
on the industry in general.
“Amid the more constrained
and competitive
trading conditions
we are also seeing a move
among successful and professional
agents to leading property
brands and over
the past 10 months we
have increased the number
of agents at our PGP Durban
office from 16 to 26.
“Clients are seeking
out reputable
agents and leaning
on them for sound advice,
and as a result both buyers
and sellers are more well-informed
and have in the main adjusted
to the current market,"
she says. |
Reynolds adds: "We certainly
are receiving many more
enquiries than previously.
In the Durban area,
including Berea, Morningside,
Glenwood and Durban North,
we are seeing an influx
of buyers and a greater attendance
at show days with approximately
nine to 15 people per show house.
“Being a holiday destination
the Durban area attracts high
interest over the December/January
holiday season, particularly
as at this time of the year
there's also a trend towards
those wishing to buy or rent
property due to relocation from
other areas such as Gauteng,
and usually for business reasons."
On the lower south coast
in the Margate and surrounding
area PGP has experienced
a busy festive season with even
in excess of 25 serious
buyers at show days and offers
being received. Properties
sold were mainly sectional
title beachfront apartments
priced between R1.6
million and R3.5 million.
Dina
Porteous, PGP's area principal
says: "The bulk of
buyers are looking to
acquire second
homes and in
addition to SA-based
purchasers these
include those who have
returned from overseas
- some as a result of
the harsher economic situation
over there."
On the north coast in
the Umhlanga and
Umdloti areas
PGP joint area principals
Peter Pringle
and Elwyn Schenk
report a substantial
increase in enquiries
since late 2008 - with
a busy festive season,
which saw sales being
concluded. |
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Says Schenk: "Buyers are
a mix of locals and those from
upcountry. Here again clients
have a keener sense of the market
and a more upbeat outlook in
regard to South Africa, particularly
when compared globally."
In the Ballito area
and surrounds, Clive
Greene, PGP area principal
says enquiries
have also been very brisk
with serious buyers
in the market and prepared to
pay realistic prices. Here PGP
also reports an upsurge in local
buyers, in addition to those
from out of town. |
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Contact
PGP KZN regional office
at 031 313 7300
Issued by Gaye
de Villiers Tel: 021
683 7788 or 083 325
1939 |
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RENEWED
CONFIDENCE IS STARTING TO UNDERPIN
THE HOMES MARKET
By Ronald
Ennik - Managing Director of Pam Golding
Properties in Gauteng |
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Current
market fundamentals
indicate that the weakness
of the residential property
sector seems set to
endure at least until
the fourth quarter of
2009 – during
which time house prices
are likely to show a
further decline of about
10% in real terms before
bottoming out.
However, homeowners
can take heart from
a groundswell of increasing
business confidence
and improved market
sentiment that is beginning
to build up on the back
of a number of recent
positive developments,
which together augur
well for the inevitable
start of the next market
upturn. |
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Most significant among these
is the positive, confidence-building,
national Budget which Finance
Minister Trevor Manuel presented
to Parliament recently –
the substance of which clearly
shows that, thanks to past skilful
management of the economy, South
Africa is in better economic
shape than most other countries
and is thus escaping much of
the direct fall-out of the global
economic meltdown.
Declining Interest Rates
Another major plus factor is
the downtrend in interest rates,
which seems likely to continue
for the rest of 2009 –
thus reducing the debt burden
of existing (cash-strapped)
home bond holders while, at
the same time, opening the way
for those previously sidelined
by non-affordability to now
come into the market as buyers…provided,
of course, that they can raise
the deposit.
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Confidence
and sentiment are the
key drivers of the residential
property market. Hopefully,
conditions are now at,
or close to, the point
where banks will begin
to loosen the tight screws
they have held in place
on mortgage lending –
a move which will encourage
the recovery process,
albeit within the constraints
set by the National Credit
Act, which has been in
place for over a year.
This will release the
pent-up stock of good
quality homes that sellers
have been holding back
from the declining market
- to the extent that as
much as 35% of homes normally
up for sale in any given
year did not go on offer
in 2008.
Against this background,
early indications are
that unit sales volumes
in the overall market
could increase by around
15% this year before the
anticipated upturn really
takes hold in 2010. |
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| FIRST TIME BUYERS SHOW PREFERENCE FOR
SASOLBURG |
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| Sasolburg, situated
within the industrial powerhouse of the Vaal Triangle
and well known for the Sasol Oil Refinery and
the Vaal River… |
| Read
more… |
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| TRAFFIC CONGESTION BOOSTS INTEREST IN
DECENTRALISED OFFICE PARKS |
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| Concerns regarding
traffic congestion and accessibility to the workplace
can work in favour of certain areas, and… |
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more… |
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| FREEHOLD UNITS AT GENISTA RETIREMENT
LIFESTYLE ESTATE WELL RECEIVED BY MARKETPLACE |
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| Despite the economic
slow-down, the market has responded with enthusiasm
to the recently launched Genista Retirement Lifestyle
Estate situated in… |
| Read
more… |
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| PRIME LOCATED SECTIONAL TITLE UNIT SOLD
IN DUNKLEY HOUSE |
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| A sectional title
unit comprising 121sqm of office space plus parking
bay located in the upgraded commercial building,
Dunkley House just off… |
| Read
more… |
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| PAM GOLDING PROPERTIES ACHIEVES RECORD
PRICE IN BANTRY BAY |
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| Pam Golding Properties
has secured the highest price ever paid for a
house in Bantry Bay – R36.54 million, for
a luxury home situated on a rare… |
| Read
more… |
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| UPPER VAAL AREA CONTINUES TO REFLECT
SOUND GROWTH IN PROPERTY VALUES |
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| The Upper Vaal River
area, which is situated on an unspoilt stretch
of water below the Vaal Dam, continues to buck
the prevailing property market trends with… |
| Read
more… |
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| PRIME RETAIL SPACE ADJACENT TO CAVENDISH
SQUARE ON THE MARKET |
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| Prime commercial space
– particularly retail accommodation –
in Cape Town's sought after Southern Suburbs is
generally in demand… |
| Read
more… |
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| NEW RETIREMENT LIFESTYLE VILLAGE LAUNCHED
IN JEFFREYS BAY |
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| A retirement lifestyle
village comprising 380 homes has just been launched
within the 800 hectare, R1.8 billion Jubilee Lakes
Coastal Estate located at Jeffreys Bay just… |
| Read
more… |
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| PRIME LOCATION OF REFURBISHED BO-KAAP
PROPERTY HAS HIGH TENANT APPEAL |
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| In the appealing
and historic Bo-Kaap area, located in an elevated
position below Signal Hill, adjacent to trendy
De Waterkant area and… |
| Read
more… |
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