Dr Andrew Golding
Chief Executive
Pam Golding Property Group
Dear Reader,
Competing against a host of national real estate companies on the continent, the Pam Golding Property group has commenced the year on a high note, having recently been presented with two major awards at the prestigious International Property Awards held in Dubai. Meeting stringent judging criteria, the group received the awards for 'Best Real Estate Agency South Africa' and 'Best Real Estate Agency Africa'.
Locally, with respect to the residential property market in South Africa, and amid continued lethargic economic growth prospects, a reduction in the interest rate this month (January) would have been welcome not only from a general perspective, it would also have provided a further confidence boost in the marketplace, but was regrettably not to be.
The housing market continues to experience a general over-supply of stock and while bank lending approvals have improved, access to credit remains a key factor which is impacting on concluded transactions.
Elite property of the month
On top of the world – overlooking the sea
Atlantic Seaboard, Cape Town
A Stefan Antoni classic – An award winning design - A lifestyle of sheer pleasure.
In This Issue
Residential Property
Room with a View: Thinking about renovating? Keep your neighbours in mind and the potential legal costs.
International Property
Mauritius beckons: With an idyllic lifestyle, Mauritius is appealing to property investors in South Africa.
Hospitality Property
Resilience: South Africa's resilient hotel industry presents opportunities for sound investment and growth.
Agricultural Property
Gateway to Franschhoek Valley: Historic farmland offers idyllic lifestyle in picturesque Wineland's town.
Developments
Developers re-enter market: The re-emergence of developers is another positive indicator for the market.
Prestige Collection
Prestige Collection Properties: These have been carefully selected as among some of the most appealing in our portfolio.
News
International Awards: Pam Golding Properties presented with 2 major International awards in Dubai.
Property Outlook
by Stuart Murray
The residential property market continues to suffer from lack of stimulus. A further interest rate cut would help – and there are sound economic reasons for doing this – but the Reserve Bank remains cautious facing, as it does, the threat of rising inflation and global financial turmoil. Furthermore, the rand’s volatility is a concern.
Interest rates have remained steady for some time now and are likely to remain so for the rest of the year, although some analysts suggest a cut in mid-year, which would be very welcome. Business Unity SA, South Africa’s main “big business” forum, has criticised the Bank for not lowering interest rates, saying that a small cut would have sent a positive message without upsetting the balance of risks on the inflation outlook.
Meanwhile, 2011 was a year of slow house price growth and 2012 promises more of the same. The various indices released by the lending banks (based on their mortgage books) indicate the market flattening out after a fairly good 2010. The major metro markets, however, held their own in spite of the odds, with primary residential home buying rising on average by 4,9% in 2011, according to FNB. Holiday buying increased marginally as a percentage of total buying – from a low of 1,5% in 2010 to 2,5% in 2011. As is to be expected, there were pockets of high market activity, the Cape’s Atlantic Seaboard being a prime example.
The number of black buyers in former white suburban regions is also growing, a welcome indication of population group integration. Moreover, the FNB metro black township index grew by 9,9% average for the year.
Stuart Murray
Co-founder and
former editor of
Finance Weekly
magazine
