About Me

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I am a qualified Attorney. I specialise in Property Law, Commercial Law, Corporate Law and Trusts.
Please visit our website at www.prop-law.co.za for more details.
I am an elected Committee Member of the Property Committee of the Association of Pretoria Attorneys and through my involvement, I like to ensure that I am constantly at the "sharp-end" of Conveyancing Practice.

I am the elected Chairman on the Gauteng Council of SAPOA. The South African Property Owners Association (SAPOA) is the biggest and most influential institution in the property industry. SAPOA members control about 90% of commercial property in SA, with a combined portfolio in excess of R150 Billion (about $22 Billion). I am also on the National Council and the National Legal Committee of SAPOA.
Member of the Institute of Directors South Africa and Member of the Sirdar Governance Panel.

03 May 2011

FNB house price index grows 2,2%

The FNB house price index has recorded 2,2% growth year on year (y/y) in April from the revised 1,2% in March.

The bank said this was the second successive month of mild acceleration in y/y house price growth, triggered by the lagged result of interest rate cuts by the Reserve Bank late in 2010.

"Those rate cuts caused a mild uptick in residential demand which may have been more than just the usual summer seasonal factors," said FNB property strategist John Loos.

In real terms, however, adjusted for consumer price inflation, the y/y decline continued to the tune of -2,8% in March.

"However, the FNB valuers' market strength index suggests that our valuers have started to see further deterioration in the strength of demand versus supply during April, after some small signs of stabilisation in preceding months of 2011. This weakening in the market balance is the combined result of a further strengthening in the supply of residential stock on the market during the month, along with a weakening in demand, according to the valuers' combined opinion," he said.

"The contrast between the valuers' combined opinion and a slight acceleration in year-on-year price growth suggests that we should not expect too much from the slight rise in price growth. What is probably being reflected in the recent house price trend is the mild residential demand improvement late in 2010, which was the result of two late-2010 interest rate cuts.

"However, the last rate cut was five-and-a-half months ago in November, and it is likely that the impact is starting to wear thin," he said. - I-NetBridge

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