SA property hit by emigration

 

More SA homeowners are dumping their properties on the market for emigration purposes, with 12% of sellers planning to leave SA, says FNB.

SA property hit by emigration

Finance24
Monday, 21 April 2008 14:53:00

Property mkt still 'depressed'

 

Eighty-three percent of sellers have been forced to accept a lower price, while the average time that a house is on the market has risen to 12 weeks, statistics show.

Property mkt still 'depressed'

 

Finance24
Monday, 21 April 2008 13:54:00

Consistent sales in Sandton suburb

Consistent sales in Sandton suburb
2008/04/21

Sunninghill falls under the ever-growing Sandton, and is a very convenient locale to enjoy the promising future of a new CBD in the Greater Johannesburg area.
In addition, the following amenities are within easy reach of Sunninghill: Sunninghill Hospital, the Vodacom World of Golf, Montecasino, Fourways Crossing and Mall.
Month-on-month, Sunninghill has seen consistent transactions in the market, having transferred properties every month since January 2005 for both the free hold as well as the sectional title market. The market dropped to record lows of five transactions for free hold. Interestingly, this figure fell in January 2008 the latest recorded amount for the Sunninghill area.
Anne Mendelsohn, Seeff property agent for the Sunninghill area, says the market in Sunninghill is busy from a seller's perspective, "as we have double the amount of properties to sell in the area compared to the number we had last year".
Sectional title has performed marginally better having recorded 13 transactions for the month of January 2008, yet still the current state of the market is applicable to a trend seen throughout Johannesburg's higher-priced suburbs, as sellers are stuck on the market for longer periods than desired. This is due to a buyer's market that is hesitant in view higher interest rates and a post-National Credit Act (NCA) buying environment.
"There are buyers around but they are more particular and with more stock on the market it is taking longer to get an offer. Also, the offers are about 20% below asking price," adds Mendelsohn.
The average amount of transactions, taken on a monthly basis, was 14,54 for free hold and 34,83 for sectional title; these averages were recorded from Deeds Office data over a two-year period. More recent figures show that the number of transactions taking place in both markets are under two-year averages.
Yet the area remains popular with "younger yuppie buyers who either work as accountants or doctors/nurses", says Mendelsohn.
The rolling average, two-year price for free hold amounted to R1,400,278, and the average sectional title unit offering over a similar period was R693,647. The average free hold price can be seen to represent an almost doubling up on sectional title offerings.
In terms of sales revenue, the highest return was in August 2007, which witnessed R54,770,884 in total sales. - James Monteiro

Consistent sales in Sandton suburb

Keep the heat this winter

Keep the heat this winter
2008/04/21

Our home décor and DIY expert Janice Anderssen suggests an easy way to prevent your house or townhouse from feeling like an oven in summer and a fridge in the winter.
What is Aerolite?
Aerolite is manufactured locally according to technology from Owens Corning Toledo, USA. It is made from pure spun glass, bonded with an inert thermo-setting resin to form a strong, resilient, easy-to-handle blanket.
Aerolite forms a highly efficient thermal barrier which excludes solar heat gain in summer and retains heat generated within a building in winter. It reduces heat flow by up to 87% and can lower the temperature in summer by up to 5°C. What's more, Aerolite's insulation efficiency is unaffected by its orientation to, or the direction of, heat flow.
Aerolite is the only ceiling insulation in South Africa that does not burn - as it is made from fibreglass! This means it is the safest insulation you can buy.
Keeping cool indoors when it is hot outdoors is a problem. The sun beating down on our homes causes indoor temperatures to rise to uncomfortable levels. Insulated ceilings reduce the heat flow between the outside and the inside of your home, keeping it warmer in winter and cooler in summer.
In our hot summer months, up to 35% of the heat in your home enters through an uninsulated ceiling. If you have ever been up into your attic during the summer, you know yourself how hot it can be up there. Insulating the ceiling of your home should be a top priority.
Draught-proofing your home will also help keep the summer heat out. For example, seal windows and door bottoms with insulation strips.
Installing Aerolite
1. Measure the distance between the timber roof trusses.
2. Cut the insulation material - while it is still in the bag - to the correct width to fit snugly in the space between the roof trusses.
3. Roll out firmly between the roof trusses on top of the ceiling.
4. Wrap insulation around waterpipes so that they do not freeze in winter, and we recommend you also wrap the geyser for further savings on electricity bills.
Benefits at a glance:
- 30-year guarantee
- Saves money on electricity bills
- Does not provide sustenance for rats and mice
- Non-combustible
- Contains no asbestos or plastic fibres
- SABS tested and approved (SABS 1381 Part 1)
- Reduces condensation
- Mould-resistant
- Light weight
- Corrosion-resistant
- Maintenance-free
- Sound absorption
- Will add value to your home
- Available in mini rolls
For more information click here to visit the website.

Keep the heat this winter

New KZN airports impact property

New KZN airports impact property
2008/04/21

Currently under construction, the King Shaka International Airport and Dube TradePort at La Mercy are already beginning to have a major impact on the property market in the area, with a high demand evident for industrial and commercial land and a growing trend towards those seeking permanent residences on this part of the north coast, says Clive Greene, area principal for Pam Golding Properties, based in Ballito.
"These major projects will provide a huge boost for the local economy and create numerous job opportunities. Currently we are seeing the start of a surge in demand for both commercial and residential property, with an unprecedented demand from developers for land currently being rezoned for industrial use - particularly given the opportunities presented for secondary industries as a spin-off from the airport," says Greene.
The airport, which will be a tradeport as well as a passenger terminal, is easily accessible to both Richards Bay and Durban, both major shipping ports through which raw materials are transported to factories for processing and then freighted out either by ship or air. As a result there will be a huge saving in transport costs - hence the dramatic increase in demand for the relocation of production facilities to this new hub.
In and around Ballito, the Lifestyle shopping centre has expanded to 30 000sqm while a new shopping centre comprising some 100 000sqm is also planned for the area. In addition, the Ballito business park - with mainly offices, small commercial, light industrial and car showrooms - is well under way with an increasing uptake of space.
In terms of residential property, Greene says the average selling price of homes in the Ballito area is still around R2.3 million. Nearby Zimbali is attracting interest among those seeking permanent residences but mainly in the top end of the market ranging from R5-R40 million, with two properties recently sold by PGP for R10.4 million and R11.75 million - the latter being a home with exceptional sea views.
"It's interesting to note how the demand for homes is moving even further north. Blythedale coastal resort has experienced phenomenal sales which will result in significant growth in the Stanger area. In the Tugela River area, where the huge King Shaka statue is to be built, a 7500ha city with 30km of beachfront is in the planning stages - with the involvement of the local community which owns the land."
Greene says demand in the Ballito area is mainly in the R1 million price range - a sector of the market where there's a shortage of stock. Holiday accommodation in the R2-R7million price bracket is selling, however like so many places in South Africa at present, the supply exceeds the demand. With its major lifestyle appeal, this area of the north coast is this year estimated to achieve growth in property values in the region of eight percent.
In Ballito and the surrounds homes range from one bedroom apartments priced from R950 000 to two to four bedroom apartments on the beach priced from R1.8-R13million. Houses with sea views range from R12-R25million, while at estates - such as Zimbali - where completed units are marketed, prices range from R25 000-R40 000 a square metre. PGP are also currently marketing a luxury five bedroom home in Zimbali at R42 million.
Photos:
1. Zimbali R18,9m: Five bedrooms, five bathrooms, gourmet kitchen, entertainment room, gym, covered patios, heated and cold pool and four garages.
2. Ballito R25m : Caribbean mansion with seven bedrooms and seven bathrooms, an acre of prime land with landscaped gardens and sea views. Includes a gazebo, several entertainment areas, separate guest suite and three staff quarters.
3. Sheffield Beach R25m : Six bedrooms, six bathrooms with free-flowing entertainment areas, two swimming pools and three garages. Situated on the beach with no other houses in sight.
For more information contact Clive Greene at 032 9463430 or send an email.

New KZN airports impact property

'Property market will survive'

'Property market will survive'
2008/04/21

The residential market will remain tough for the next eighteen months, but should pick up by the end of next year when interest rates will probably start to come down.
Despite various unusual factors that together have contributed to the extremely difficult market circumstances, Pam Golding Properties (PGP) chief executive Andrew Golding believes the local property market will survive the storm.
"People forget, but in 1998 the house market was in a similar position when interest rates reached 25%."
A seven-year boom market followed shortly afterwards.
He said the property market was largely driven by sentiment, which would be a key factor in the future welfare of the industry.
Sentiment is taking a knock now because of worldwide fears of a recession amid the sub-prime crisis in the US and the sky-high international oil price.
On the national front it was being influenced by rising interest rates, political uncertainty and the Eskom crisis.
The National Credit Act (NCA) had also had a meaningful impact on banks' capacity to lend money, which hurt the property market.
Consequently, sales volumes were between 20% and 30% lower.
Even though buyers were now in a position to negotiate a more realistic price with sellers, he did not foresee "massive sales".
Some buyers will pay R60m
But while the broader market was affected, he said that houses of more than R15m were in an unusual position and were surprising with continued price growth.
"To pay R40k/sq m for a new house Cape Town and Gauteng is not strange anymore," he said.
Buyers in this category are prepared to pay R60m for a property because they are relatively unaffected by rising interest rates. – Elma Kloppers, Beeld

'Property market will survive'

Buyers adopt new search dynamics

Buyers adopt new search dynamics
2008/04/21

Massive growth in South Africa's real estate sector since 2003, both price-wise and geographically, has resulted in thousands of property shoppers adopting new search dynamics.
Some have done so by choice, says Mike Bester, CEO of Realty 1 International Property Group, while others, on the back of reduced affordability, have had little option.
Both categories, however, stand to reap enormous short, medium and long-term benefits if they've bought in the new "hotspot" areas that are coming into their own around the country, he says.
Among the most obvious of the benefits of buying in such areas is paying less for more.
"Traditionally sought-after areas invariably come with hefty price tags," he says.
"This has spurred home buyers into looking elsewhere, for example on the outskirts of town or in areas they would have sidelined in the past. People are changing their mindsets as they search for better affordability or lifestyles that offer less traffic congestion, crime and grime."
Among the new hotspots on South Africa's real estate radar are farmlands that have now been developed into residential suburbs such as those on the East Rand, little known coastal hamlets and holiday destinations in the Western Cape and the KwaZulu-Natal south coast, and parts of Johannesburg's inner city, where properties are being steadily upgraded by house-proud residents.
Pricing aside, the development and growing popularity of these areas has in many instances been concurrent with the construction or improvement of local roads. "This has in effect brought them closer to town, thereby making commuting far more viable," he continues.
Not only are many of these hotspots becoming residential destinations of choice but they are also being sought-out by entrepreneurs. He bears this assertion out by noting the rise in number of small businesses throughout the country.
Hotspots can be identified by a number of factors, says Bester. They are characterised by a good balance between competitive pricing, steady upward value growth and sales turnover.
"Ideally, one is looking for places that could have lagged behind the national growth average but which is now experiencing better-than-average appreciation."
This information is readily available from professional area specialist, and can be substantiated from driving around the area, counting sold signs and measuring the rate and type of property upgrades.
Also important for a "happening" hotspot is for it to have good access to main roads and freeways as well as amenities, medical and shopping centres and preferably public transport routes, he notes further.
"Buying into a new hotspot could be the answer for purchasers with limited budgets, especially if the property allows for expansion at a later stage," concludes Bester.
"It could also be the solution for existing homeowners struggling with affordability problems. By selling their current properties and moving to a more affordable home or area, they would hopefully be able to use the equity to ease their debt while simultaneously financing a new home and then watching their capital investment grow again."
For more information click here to visit the website.

Buyers adopt new search dynamics