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| Holiday House is not a Home |
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Holiday home owners might wish their coastal pads were where they lived 365 days of the year, but the reality is that many are absentee landlords who visit infrequently or rent out their property for most of the year
But whether this means that these properties can legally be referred to as homes – and the implications of this for the rights of landlords and their tenants – was raised by a recent Supreme Court of Appeal judgement.
In the September judgement, Judge F.D.J. Brand, in Barnett v Minister of Land Affairs [2007] SCA 95 (RSA), stated that holiday houses or cottages were not "homes" covered by the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act 19 of 1998 (the Pie Act).
The Pie Act provides for the prohibition of unlawful eviction and for procedures for the eviction of unlawful occupiers.
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| Interest Rates Having Minimal Impact on Listed Property Prices |
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ApexHi chairman Marc Wainer says this is largely because the market is factoring in superior growth for the sector
ApexHi is reflecting a total return of 14% after the first three months of this financial year, with further capital growth expected and another three distributions to come.
Wainer says the yields that investors can get on listed property stocks are also looking attractive when compared to the yield on long term bonds, which has decreased marginally.
“Listed stocks are also expected to receive a boost following the PIC’s announcement that it aims to have a total of R70-billion invested in property. Its current investment is about R15-billion, so it needs to invest a further R55-billion. A portion of this will be in listed property, which almost creates an underpin at current price levels,” he says.
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| Wave of Opportunity as Jeffreys Bay Development Takes Shape |
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Construction has begun on the R3,5 billion Fountains Estate commercial and residential development in Jeffreys Bay that is revolutionizing South Africa’s fastest growing coastal town
A R2 billion plan becomes a R3,5 billion reality as commercial demand far outstrips researched planning.
The extent of market demand was under estimated when the Fountains Estate was in planning, and what was announced in 2005 as a R2 billion neighbourhood development has materialized into a R3.5billion mega project.
The 600ha mixed use development, among the largest in South Africa has virtually doubled in size and scope following aggressive demand for business opportunities on the Garden Route over a period of just 24 months.
Demand for a commercial node was originally identified by Oswald Buchner the then owner of the Fountains Farm in 1985 and it was acknowledged by the Planning Authorities.
Now, 20 years later demand is no longer for a local node but for a regional all embracing commercial, retail, industrial and residential new town that will inject R3,5 billion into the Jeffreys Bay economy.
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| Developers Buy into Soweto |
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With 13 massive property development projects under way or starting in 2008, South Africa's biggest township is offering fantastic returns to the adventurous investor looking for a new beat
Soweto, Johannesburg is no longer the unwanted stepchild. In the last seven years this region has outgrown its baby shoes and looks set to become a happy, well-adjusted adult.
During an investor tour of Soweto on 13 November, 40 developers were in awe of what has already taken place in an area many people consider simply a nasty legacy left over from apartheid.
During the tour, Region D manager Roger McCulloch was quick to dish out a challenge. "We are publicly declaring that we are in competition with Sandton."
"We want to showcase development over the last 10 years and instil some confidence [in developers]," confirmed the region's manager for programmes and strategy, Lali Mohlabane
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| Flooding Hits Garden Route Prices |
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Recent flooding in the southern Cape and along the popular Garden Route will have a serious short term impact upon the prices of affected properties, but is unlikely to result in a decline in general property values in the area
This is the view of Hein Pretorius, Principal Consultant for Lew Geffen Sotheby's International Realty Plettenberg Bay, who says that, although this flood was the highest in recorded history, the lifestyle on offer along the Garden Route is likely to keep people coming back over the longer term.
"Riverfront properties, which have always commanded a premium, will clearly be most affected. With the frequency and magnitude of flooding apparently on the increase, it is quite possible that the minimum floodline height will be increased. Anyone planning on building close to existing floodlines should bear this in mind," he said.
| Lew Geffen Sotheby International, 29-11-2007 |
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| Johannesburg in Top 50 Commerce Hubs |
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Johannesburg has been ranked 47th out of 50 cities worldwide in a new study of the centres of commerce that shape the global economy
The findings of the study, the MasterCard Worldwide Centres of Commerce Index, were presented in Johannesburg this week.
Compiled from research by a panel of eight independent economic, urban development and social science experts from leading academic institutions around the world, the index explores the strategic role that cities play in driving the global economy.
Based on six measurement dimensions consisting of over 100 data points, the index assesses the legal and political framework, the economic stability, the ease of doing business, the financial flow, the business centre capabilities, and the knowledge creation and information flow of the world's 50 leading cities.
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| Where Does South African Property Fit In? |
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Growth in developing countries has accelerated, driven by improved fundamentals
This is the view that Hans Timmer, manager of the Global Trends Team for the World Bank in the Netherlands, presented at the fifth annual IPD/SAPOA property investment conference held from 14 to 16 November 2007 in Cape Town.
However, there is disagreement amongst South Africa's property players as to the extent that South Africa will be in line for capital inflows, taking into account its sizeable current account deficit, inflation risks and moderately slowing demand for stock.
According to property economist Francois Viruly of Viruly Consulting the latest figures he has seen suggest that South Africa makes up approximately 2% of the emerging market and 0,5% of it in terms of total investment stock around the world.
| IPD/SAPOA Property Investment Conference, 28-11-2007 |
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| Young, Black and Moving to the Suburbs |
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Inroads are being made into apartheid-era divisions in the property market, with increased numbers of township professionals moving into former white suburbs to rent or buy
Experts say the migration is taking place in the search for access to services such as shopping malls, schools, health care and transport.
Prof John Simpson, director at the University of Cape Town's Unilever Institute, said statistics showed an increasing number of black people from middle-income groups moving into the suburbs from townships such as Gugulethu and Khayelitsha in Cape Town.
But, he said, those that moved always found a way to visit the townships from where they came, usually on weekends.
Statistics from TNS Research Surveys indicate an increase in Black Diamonds – those black professionals in the middle and upper-income ranges – living in suburbs, according to information provided by senior research executive Nomsa Khanyile.
With an estimated 2,6m Black Diamonds and 47% of these already living in suburbs, the number of arriving Black Diamonds was estimated at 50,000 per month, or about 12,000 to 14,000 households per month.
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| Property Demand to Feel The Heat |
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Higher interest rates and over-indebtedness of individuals will suppress demand for residential property in months to come
This reduction will continue to feed through the building sector, making developers more cautious about submitting further building plans over the coming few quarters.
There continues to be a significant downward trend in building plans passed, with overall real growth declining to -6,7% year-on-year (y/y) in September from August's figure of -2,7% y/y. This was the fourth consecutive month of negative y/y growth.
In the residential sector the real growth in building plans passed decreased further in September to reach -13,8% y/y from August's figure of -10% y/y.
In the non-residential sector, however, the real growth in building plans rose significantly to 25,2% y/y in September from August's figure of -4,1% y/y, returning to levels seen at the beginning of the year.
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| New Communication Service Offered |
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Ready-to-connect telecommunications services are a key differentiator in the property market, especially in new developments, such as security complexes, golf estates, shopping centres and business parks
In fact, these services were identified as a top priority for 83% of property developers and 72% of residents who took part in recent market research commissioned by Telkom.
Responding to this survey, Telkom has introduced Property Development (PD) Connect, a service especially developed for architects and property professionals to facilitate the implementation of communications and broadband infrastructure.
By registering with PD Connect, a developer is able to establish the necessary communications infrastructure before building begins. Progress can be tracked using a unique reference number, either through a single contact point or through lodging a query on the website.
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