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| Future of South Africa Property Looks Positive |
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2006 was a relatively good year for property in South Africa, and even though the appreciation figures were not as high as previous years, some areas around the country have continued to outperform the national average
Elite and sought after suburbs in both Johannesburg and Cape Town have been faring exceptionally well. For example, according to Knowledge Factory's SAPTG statistics, Llandudno has seen a yearly growth of 38,06% for the year 1 November 2005 to 31 October 2006,
while Westcliff has seen appreciation of 51,58% during the same period. This trend is expected to continue, even with all the warnings of additional interest rate hikes. Absa's latest House Price Index notes that a nominal house price growth of 12,7% year-on-year was recorded in October compared to the revised growth rate of 13,5% in September. This brought the average price of a house in the middle segment of the market to R830 700.
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| Foreign Property Investment Crucial |
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The sale of the landmark V&A Waterfront to a foreign consortium is likely to act as a catalyst to further foreign investment in South Africa
2010 has made foreign investment in South Africa property a viable
long-term investment that will benefit the country.
According to Alastair Collins, chief executive of Davis Langdon & Seah International's Global Board and managing partner of the International Group that operates throughout Europe, the Middle East, Africa, Asia, Australia and
the US, nothing is more topical or pertinent to South Africa than the sustainability of
international investment in its property.
"South African property is at centre stage," he say,
"and the Star Trek tractor beam of 2010 is a big draw."
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| Retail Set for Sparkling 2007 |
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In spite of tighter economic conditions spurred on by a rising interest rate environment, the South African retail property market is still expected to deliver a good performance next year
And fears early last year
that the retailer-led development of new shopping centres in Gauteng, Western Cape and, to a
lesser degree, KwaZulu-Natal, would lead to an oversupply of retail property have failed to
materialise. But offices and industrial property are expected to outperform retail property next
year.
First National Bank property strategist John Loos says the total return on retail
property would “slow mildly” next year, given that a slower growth year is expected in terms of
consumer demand.
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| Asset Chasers Eyeing South Africa |
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THE JSE-listed property sector could double in size if corporates, institutions and Government - which still own the bulk of South Africa's commercial property stock - start offloading their land and buildings to listed property funds
One of the sentiments raised at IPD/Sapoa's recently held property
investment conference in Cape Town is that now is a good time for institutions such as Old
Mutual, Liberty and Sanlam, plus major Government pension funds, such as PIC, to bring their
crown jewels - notably some of SA's biggest centres - to the JSE, giving local and foreign
investors the chance to buy into some of our most lucrative property assets.
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| Victoria & Alfred Waterfront Gets $1bn Boost |
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The Dubai World and London & Regional Properties consortium has announced plans to invest more than US$ 1 billion in the V&A Waterfront over the next four years, following its successful purchase of the development last month
The consortium has outlined a three-stage development strategy which will see improvements to the Waterfront starting immediately.
The first stage, over the next six months, will see landscaping and beautification measures, additional car parking space, commercial facilities and improvements to pedestrian access to the area.
The second stage, over the next three years, will ensure the V&A Waterfront is one of the highlights of the World Cup 2010, with the development of new hotels and resorts, creation of promenades, and entertainment areas, marinas, new shopping developments and new apartments and offices.
The third stage will see the development of new facilities to consolidate V&A Waterfront’s status as a leading global resort, with potential elements including a new yacht club and further marina development, a cruise ship terminal, a train station and improved connections to the airport.
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| Waterfront Sale - What Comes Next? |
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The sale of Cape Town Waterfront to a foreign group raises interesting questions about the issue of foreign property ownership
The V&A Waterfront Holdings linked unitholders – namely Transnet and its
pension funds Transnet Second Defined Benefit Fund, the Transnet Pension Fund and the Transnet
Retirement Fund (TRF) – have wholly sold The Victoria & Alfred (V&A) Waterfront to the L&R
Consortium for a cash price of R7,04 billion.
More than 60 South African and international companies took part in the bidding process.
The consortium, which was selected from nine short-listed bidders based on the evaluation criteria published in May 2006, is a South African company made up of a broad spread of local and international shareholders led by the UK-based London & Regional Group Holdings Limited (L&R Group).
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| Is Local Government Stifling Development? |
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While there is clearly a need for responsible local authority control of property development, there is also a real danger of disruption of the market
Nobody would argue with the need for municipalities'
to police compliance with building standards and safety regulations. Also, there is now
widespread acceptance by developers of the need to pay for their own infrastructure and provision
of services in terms of roads, water and electricity.
However, leaving aside the impact of
such self-provision on the selling prices of property for the moment, and accepting the fact that
municipal resources need to be re-allocated to redress historic imbalances, developers should
nonetheless not have to deal with uncertainties in terms of municipal regulations and
policies.
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| Wozani Ridge Coastal Estate News Release ~ Kwazulu Natal South Coast an Investors Dream |
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Popular beach areas on the KZN South Coast such as Margate and Uvongo are already an investors' dream but savvy buyers are increasingly looking to areas further north, such as Port Shepstone and Hibberdene
This is the view of Karen Anderson who has just opened a new Aida franchise serving these areas, who says prices are more reasonable on the northern stretch of the "Hibiscus Coast" - and relatively cheap when compared to properties in, for instance, Uvongo.
"Hibberdene especially is about to explode with new business, residential and other developments. There is a discernible growth in demand and enough development land to satisfy this growth for the foreseeable future.
"An existing supermarket was recently upgraded and enlarged and there are already plans in the pipeline to build another store belonging to a different national chain.
| Wozani Ridge Coastal Estate News Release, 26-05-2006 |
Read more |
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| Golf Estates in South Africa Taking Off |
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Ongoing research over the past decade has proved to us conclusively that there are two principle reasons for investment in real estate around a golf course - security and community
During the past 10 years golf
estate living has taken off in South Africa, and while there is certainly room for growth and
further development, the parameters have changed dramatically and there is a great deal more for
a potential developer to consider before taking a bold step into the golf estate development
environment
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