Road upgrade contractors announced

Road upgrade contractors announced
2008/05/19

The South African National Roads Agency (SANRAL) on Thursday announced details of the contractors awarded the seven contracts for the first phase (125,5 km) of the Gauteng Freeway Improvement Project (GFIP), amounting to a total of R11,5bn.
Siyavaya Joint Venture, led by Group Five (GFI), was awarded Work Package A* (18 km), consisting of N1 section 20 between Golden Highway and 14th Avenue (17 km); and N12 section 18 between the Diepkloof interchange and the M1 interchange (1km); as well as Work Package E (16 km), consisting of N3 Section 12 between Old Barn (Heidelburg Rd) and Geldenhuys (M2) interchanges (12 km) and N12 Section 18 between Reading (R59) and Elands (N3) interchanges (4 km).
GFI Contractors Joint Venture, comprising WBHO (WBO) and Senyati Construction, was awarded Work Package B (21 km), consisting of the N1 Section 20 between the 14th Avenue and Buccleuch interchanges.
GLMB Joint Venture, led by Aveng (AEG), was awarded Work Package C (23 km), consisting of the N1 Section 20 & 21 between the Buccleuch and Brakfontein Interchanges; as well as Work Package F (17,6 km), consisting of N3 Section 12 between Geldenhuys (M2) and Buccleuch Interchanges.
Basil Read Joint Venture (BSR) was awarded Work Package D (15km), consisting of N1 Section 21 between the Brakfontein and the R21 interchanges (10km) and the N1 Section 21 between the Atterbury and Proefplaas (N4) interchanges (5 km).
CMC joint Venture was awarded the upgrade of the N12: Gilloolys to R21 (10km), consisting of N12 Section 19 between the N3 (Gilloolys interchange) and the R21 interchanges (10km) as well as works on the N3 Section 12 between the N12 (Gilloolys interchange) and Modderfontein interchange (partial upgrading).
Upgrading of the freeway sections will take place over the next 36 months, with the works having been prioritised to be substantially completed for the 2010 World Cup.
The project will involve provision of additional lanes; interchange improvements and intelligent transport management systems, including cameras, ramp metering and electronic signage. – I-Net Bridge
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Road upgrade contractors announced

50% drop in WC show house visitors

50% drop in WC show house visitors
2008/05/20

The average number of interested buyers attending show houses in the Western Cape has plummeted with 50%, while the show house property stock has increased with 25% compared to the previous year.
According to statistics derived from House Finders' data tracking 13 Western Cape real-estate companies' show house exhibitions, there has been a 22% year-on-year (y/y) increase when comparing the first quarter of 2007 with the first quarter of 2008.
However, more stock means more options for buyers, and the spill-over is a decrease in buyers visiting show houses.
Commenting on this development by analysing show house trends in Cape Town's southern suburbs, Jeanne van Jaarsveldt, RE/MAX of SA finance and marketing director, said there was a 50% drop in buyers visiting show houses over the last few months.
"A year ago the average number of buyers visiting a show house was between 15 to 30, with homes in middle price brackets being the most active. We are now seeing between 4 to 12 visitors coming to show houses over weekends," he said.
"The most active price brackets are in the Plumstead area where buyers have an interest in properties between R900k and R1,3m. In the South Peninsula the average price is R750k to R1m, while in the South East Peninsula, the majority of buyers are looking for properties under R750k," says RE/MAX Elite broker and owner, Alan Burgoyne.
"Bergvliet and lower Constantia have the most active show houses, which are in the vicinity of R2m plus."
But now, negative reports about increased crime at show houses, which circulated in the media last week, can further negatively affect attendance figures.
Western Cape media reports of increased crime activity targeted at estate agents, specifically during weekends at show houses in the Southern Suburbs, have appeared recently.
"With the number of houses for sale increasing dramatically over the recent months, the majority of serious sellers recognise the important role show houses play in ensuring that their homes are viewed by the maximum number of serious buyers," says Van Jaarsveldt.
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50% drop in WC show house visitors

 

 

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Show days 'dangerous' for agents

Show days 'dangerous' for agents
2008/05/17

Lately show houses have been an easy target for criminals, and with the glut of properties for sale now there's plenty to choose from. An agency group has published guidelines for its agents on how to protect themselves and the seller's property.
Lately show houses have been an easy target for criminals, and with the glut of properties for sale now there's plenty to choose from.
Johannesburg estate agents have for some time refrained from publicising the addresses of show houses until the last minute, often preferring to only give out the address to potential buyers after checking them out. An indication of how serious the situation has become was seen on Wednesday, when Rawson Properties announced the launch of a new dossier for its agents that includes information on how to protect themselves. In doing so, they also protect the seller's property, and help ensure the safety of potential buyers when visiting show houses.
While it is now a concern in the real estate marketing sector that open day show houses can be a security risk, it would be a great pity if they were dropped, says Tony Clarke, MD of Rawson Properties, because show days are still effective in selling property fast. The small firms with limited advertising budgets would be particularly hard hit, he says.
Clarke has drawn up three full pages of advice to Rawson agents on how to protect themselves and "keep ahead of the bad guys" in all situations, but especially at show houses.
Some of the key pointers mentioned in the document are:
• On entering a show house for the first time, Clarke advises, the agent should check all rooms and work out the most convenient escape routes, unlocking all deadbolt locks which might slow down an exit. Back doors, although often a handy for an escape, can lead into high walled yards, Clarke warns.
• When visitors arrive, agents are advised to note their car licence place numbers and when showing them the house the agent should walk behind, not lead.
• "Watch what prospects are doing at all times. Do not become preoccupied with viewing the home – and always expect the unexpected," says Clarke.
Clarke also advises agents to notify their office or a friend that they will call every hour – if they do not the colleague should contact the police at once.
"Neighbours should be asked to keep an eye on the property throughout the day. Above all, do not be in the house on your own – have a colleague or friend with you. If you become suspicious of a prospect, leave at once," writes Clarke.
In general, he says, agents should meet prospective buyers the first time in the company offices and then should insist on identification, giving the reason that "it is company policy". He advises them to find out as much as they can about the prospects, such as where they work, what they do, and how much they earn. "Ask many questions and be a good listener."
Clarke warns agents always to use their own car for viewings and to be familiar with the area in which the property is located.
Clarke's document for Rawson agents also includes advice on office safety and harassment, whether by telephone, stalking or direct approach.
"It is regrettable that we have to be aware of these matters," said Clarke, "but it is also true that crime can be prevented by adopting simple precautions. Our industry has an unusual number of women, whom criminals and psychopaths see as soft targets because in this job they have to work away from the security of their offices."
For more information contact Tony Clarke on 021 658 7100 or send an email to research@rawsonproperties.com.

Show days 'dangerous' for agents

Transfer Duty Act briefly explained

Transfer Duty Act briefly explained
2008/05/19

Transfer duty is a form of government tax that was introduced as long ago as the 17th century and is still relevant to most property transactions today.
Transfer duty, not to be confused with transfer fees or costs, is imposed in terms of the Transfer Duty Act ("the Act") and, generally speaking, it is payable when immovable property is acquired.
Transfer duty is payable by the purchaser to the South African Revenue Service (SARS) and is calculated as a percentage of the purchase price. The rates of transfer duty are specified in the Act. If no purchase price is payable or if SARS is of the opinion that the purchase price is less than the fair value of the property, then SARS will calculate the transfer duty based on the fair value.
By way of example, using the current transfer duty rates, which have applied since 1 March 2006, transfer duty payable on a purchase price of R2m is calculated as follows:
- if the purchaser is a company, close corporation or trust, transfer duty is 8% of the purchase price = R160k
- if the purchaser is an individual, transfer duty is:
- 0% on the first R500k of the purchase price (R Nil);
- 5% on the amount from R500k to R1m (R25k); and
- 8% on the amount over R1m (R80k)
- Total transfer duty = R105k
Transfer duty is payable within six months from the date of acquisition. In most cases this will be six months from the date the sale agreement is signed. If the transfer duty is not paid within this time period, penalty interest will be charged by SARS.
In terms of the Act, the Deeds Office is not permitted to register a transfer unless there is proof that transfer duty has been paid or that no transfer duty is payable. This means that a purchaser is required to pay transfer duty prior to the transfer being lodged in the Deeds Office so that the conveyancer can obtain a transfer duty receipt or exemption certificate from SARS for submission to the Deeds Office.
A purchaser does not pay transfer duty in transactions where VAT is payable. This is where the seller is a VAT vendor and the sale of the property is in the course of the seller's business e.g. a property developer. In such instances, the purchaser will pay the purchase price and VAT to the seller who is then responsible for paying the VAT to SARS.
For more information contact 031 570 5300 or send an email.

Transfer Duty Act briefly explained

Middle segment price growth down

Middle segment price growth down
2008/05/09

According to the latest Absa house price index, released on Thursday, South African house prices in the middle segment of the market slowed to a nominal 6,8% year-on-year (y/y) in April from 7,8% y/y in March, taking growth to an eight-and-a-half year low.
This is also the fourth consecutive month of single-digit growth in nominal house prices since a growth rate of 11,2% was recorded in December last year.
The latest price is also the lowest since November 1999, when it was 6,5%, and brought the average price of a middle-segment house to about R974 in April this year.
In real terms, house prices in the middle segment of the market dropped by 2,5% y/y in March 2008, compared with a decline of 0,9% y/y recorded in February, based on headline CPI inflation.
"This was the biggest negative real year-on-year growth rate recorded in house prices since May 1997, when it was at a level of –3,4% y/y, based on nominal price growth of 5,7% y/y, and a headline CPI inflation rate of 9,5% at the time," noted the researchers.
On a month-on-month (m/m) basis, nominal house price growth was only 0,2% in April, unchanged from March. In real terms, house prices dropped by 1,3% in March from February. The real price of a middle-segment house has dropped by a total of R19,700, or 3%, from an all-time high of around R651,500 (at constant 2000 prices) in August last year to about R631,800 in March this year.
"Sharply rising CPIX inflation, currently at 10,1% y/y and mainly driven by international oil prices, rand exchange rate and food price trends, the 450 basis points worth of interest rate hikes since mid-2006 on the back of inflationary pressures, a significant slowdown in growth in real household disposable income in 2007 and the full implementation of the National Credit Act (NCA) in mid-2007, are factors having a negative effect on the affordability of housing," said the researchers.
They said these trends have caused the focus of homebuyers to have shifted from luxury, large and expensive properties to smaller and more affordable properties in recent times.
"As a result of these developments, the downward trend in year-on-year house price growth has accelerated since September last year. With inflation still under strong upward pressure, inflation expectations will remain high over the short term, which will have a significant influence on demands for higher wages this year," they say.
Against this background, the Reserve Bank's Monetary Policy Committee is expected to hike interest rates by another 50 basis points at the June meeting.
In view of these developments and expectations, house price growth is forecast to slow down even further in the rest of 2008 from current levels, says Absa.
Nominal price growth of well below 10% is projected for the full year, with real price growth expected to be in negative territory, which will be the first annual drop in real prices since 1999, when it was -0,3%. – I-Net Bridge

Middle segment price growth down

 

'No house price recession'

 

The residential property market faces a mild cyclical downturn, says Standard Bank. The market for cheaper properties has already picked up.

'No house price recession'

Overpricing is the real culprit

Overpricing is the real culprit
2008/05/05

Sellers, not legislation, nor rising interest rates or estate agents, was cited as an unnecessary major contributor to the residential property market's slowdown.
While it was an undisputable fact that the South African economy had become entangled in the global credit crunch, its effect on the market along with rising interest rates was "being largely overstated", says Jeanne van Jaarsveldt, marketing and finance director of RE/MAX of Southern Africa.
"Undeniably, the biggest sheet anchor on the movement of residential property right now is overpricing and this can be substantiated by the number of sales being concluded after negotiation on price."
According to the FNB property barometer, for the first quarter released earlier this week, the percentage of properties sold at less than asking price was 83% and 82% in the last quarter of 2007.
Van Jaarsveldt insists that it is important that sellers realise the slowdown in the South African property market was a direct result of financial fundamentals of a global nature and not part of a national conspiracy engineered by the Reserve Bank, the commercial banks or estate agents.
To blame the Reserve Bank was unfortunate as it was only exercising its appointed role of controlling inflation through the traditional tool of interest rate adjustments. It was also unfair to fault other market influences, such as the state, banks and estate agents. The reality was that South Africa, just as other international economies, had been snared into the global credit crunch, which was creating uncertainty and grinding down market confidence.
"In New Zealand we have seen residential sales plummet by more than half in the past month over March of last year while Britain's annual rate of house price growth in the first quarter of 2008 was 2,2%, down from 6,9% at the end of 2007. House prices slowed even more sharply in Northern Ireland where the annual rate of appreciation fell from 24,2% to –3,4%.
"Sales have also fallen in the US with prices flattening out while in Australia that country's national estate agent body heaved a sigh of relief almost audible enough to be heard in South Africa after its Reserve Bank held rates steady this month after hikes in both February and March which left home owners reeling from the accumulative effects of the increases."
Van Jaarsveldt urges both sellers and buyers to maintain perspective of the market and particularly it's strengths as opposed to exaggerating its weaknesses, which had become overly fashionable. Of importance, and this only applied to the South African market, was the continued emergence of the black buyer.
"Some commentators believe this source could run for 20 years before a burnout, but the importance of this feature is to understand that its former momentum has only been briefly stalled and will resume once affordability begins to improve among state employees."
Also pertinent, even in the current slowdown, house price growth was still increasing, admittedly of a slower nature. Sales in the lower end of the market were also still active, but to van Jaarsveldt, the biggest indicator underpinning a recovery was the lack of new building taking place.
The pace of new residential developments had slowed markedly with many developers at their wits end trying to successfully mix the cost of new building land and materials with affordability. Further shrinkage in new unit supply was inevitable and this, perhaps more than any single feature, would fuel second hand stock prices unrealistically when the market turned.
For more information contact Jeanne van Jaarsveldt on 021 761 1110.
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Interesting comment but he fails to point out that overpricing can only be in place if estate agents support it. It is either due to inexperienced, unsupervised canditate agents or the greed of experienced agents and the frenetic clamour that is deliberately created by some agents to cause confusion to potential sellers. - Tony Penfold

Overpricing is the real culprit