Middle segment property values rise 5% on Absa index
Middle segment property values increased by 5 percent year on year last month following a revised 3.3 percent year-on-year rise in October, according to the latest Absa house price index released yesterday.
However, Absa said average house prices in the first 11 months of this year were unchanged compared with the corresponding period last year.
In addition, Absa said although the year-on-year growth in the average value of homes in the middle segment of the housing market increased further last month, month-on-month house price growth continued to be on a downward trend.
This trend commenced at the middle of this year and was expected to affect year-on-year house price growth "in the near future", said Jacques du Toit, a property analyst at Absa Home Loans.
Du Toit said real price deflation was still evident in the middle house segment up to October but the downtrend was being arrested, with the smalland medium-sized categories showing some real year-onyear growth in October. Real house prices are adjusted and deflated to take account of the impact of inflation.
Du Toit added that relatively low nominal house price growth was forecast for the next 12 months and with headline consumer inflation projected to average around 5.5 percent next year, some real house price deflation might still occur for most of next year.
FNB reported last week that while the housing market, along with house price growth, did experience some improvement in strength earlier this year, the pace of improvement appeared to have been tapering off and was reflected in the slower growth in house prices.
Its house price index slowed further last month with yearon-year house price growth dropping to 0.5 percent.
John Loos, a household and property sector strategist at FNB Asset Finance, said this was the eighth consecutive month of tapering growth since the relatively impressive 8.4 percent peak in year-on-year growth reached in March this year.
FNB said the average value of home transactions on its index was R819 733 last month.
Business Report
About Me
- Gareth Shepperson
- Pretoria, Gauteng Province, South Africa
- Property Lawyer & Conveyancer ... Lover of Life in general!! www.prop-law.co.za In this Blog we have always brought you the latest PROPERTY NEWS but now we will also bring you a Q & A SECTION, where we answer readers questions. Please e-mail your questions to gareth@propertylaw.onmicrosoft.com (The information contained in this Blog does NOT constitute legal advice. If you require legal advice, you are very welcome to contact me.)
12 December 2012
Super rich flock to Sandton, Cape Town central
Super rich flock to Sandton, Cape Town central :
Where do South Africa's wealthiest people live? A report from London-based consultancy Wealth Insight sheds some light on their geographical distribution.
With 36 multimillionaires, Sandhurst accounts for the largest proportion of Johannesburg's ultra high net worth individuals (UHNWIs). Bryanston accounts for the second-largest percentage, "although it is a significantly larger suburb than the likes of Sandhurst, Hyde Park and Westcliff ", the report notes.
"The area known as Sandton, which includes Sandhurst, Sandown, Morningside, Hyde Park, Melrose, Atholl and a number of other suburbs, is home to over half of Johannesburg's UHNWIs."
The report also notes that a number of South African companies moved their head offices to Sandton, following a rise in crime in Johannesburg's city centre between 1990 and 2000. "Most notably, the JSE moved to Sandton in September 2000 from the central business district. Sandton has continued to grow strongly between 2000 and 2011 and is considered to be the banking and wealth centre of South Africa."
Central Cape Town accounts for the highest proportion of that city's UHNWIs (17 percent). The bulk of these are based in the Waterfront Marina, Higgovale, Green Point, Oranjezicht and Tamboerskloof.
According to Wealth Insight research, Camps Bay, in second place, is home to the largest number of South African homes worth more than R20 million, while Clifton, in third place, is home to the largest number of South African homes worth over R50m. Clifton is also the most expensive residential area in the country.
Clifton and Bantry Bay in particular are hotspots for wealthy foreign billionaires who own some of the largest properties in these areas. The report notes: "These individuals are not included in our count as they are based in other countries. Other wealthy Cape Town areas with more than one billionaire include Hout Bay, Newlands, Upper Claremont, Kalk Bay and Simon's Town."
Business Report
Where do South Africa's wealthiest people live? A report from London-based consultancy Wealth Insight sheds some light on their geographical distribution.
With 36 multimillionaires, Sandhurst accounts for the largest proportion of Johannesburg's ultra high net worth individuals (UHNWIs). Bryanston accounts for the second-largest percentage, "although it is a significantly larger suburb than the likes of Sandhurst, Hyde Park and Westcliff ", the report notes.
"The area known as Sandton, which includes Sandhurst, Sandown, Morningside, Hyde Park, Melrose, Atholl and a number of other suburbs, is home to over half of Johannesburg's UHNWIs."
The report also notes that a number of South African companies moved their head offices to Sandton, following a rise in crime in Johannesburg's city centre between 1990 and 2000. "Most notably, the JSE moved to Sandton in September 2000 from the central business district. Sandton has continued to grow strongly between 2000 and 2011 and is considered to be the banking and wealth centre of South Africa."
Central Cape Town accounts for the highest proportion of that city's UHNWIs (17 percent). The bulk of these are based in the Waterfront Marina, Higgovale, Green Point, Oranjezicht and Tamboerskloof.
According to Wealth Insight research, Camps Bay, in second place, is home to the largest number of South African homes worth more than R20 million, while Clifton, in third place, is home to the largest number of South African homes worth over R50m. Clifton is also the most expensive residential area in the country.
Clifton and Bantry Bay in particular are hotspots for wealthy foreign billionaires who own some of the largest properties in these areas. The report notes: "These individuals are not included in our count as they are based in other countries. Other wealthy Cape Town areas with more than one billionaire include Hout Bay, Newlands, Upper Claremont, Kalk Bay and Simon's Town."
Business Report
10 December 2012
Diepkloof Square community shopping centre opens in Soweto
Diepkloof Square community shopping centre opens in Soweto
Soweto entered a new era of convenient, quality retail when Diepkloof Square community shopping centre opened, fully let, on November 29.
Diepkloof Square in Soweto opened last month.
The 16 108 m2 community centre is anchored by Pick n Pay in a 3 112 m2 store and features 50 shops, including a new 1 720m2 Food Lover's Market.
"Diepkloof Square is a really exciting project," says Food Lover's Market group property and business development manager Graeme Liebenberg. "Diepkloof holds a special place in the heart of many South Africans.
"It was one of the earliest communities in Soweto and many influential South Africans live, have lived or passed through this suburb."
In the epicentre of affluent Soweto, Diepkloof Square is positioned in an exciting setting in a growing community in Diepkloof Extension 3 near the N1, with excellent visibility and access from the main arterial road serving Diepkloof, Immink Road.
"Diepkloof Square will provide quality retail in a smart, modern setting - giving residents easy access to tailormade convenience shopping," says Jason McCormick, the managing director of developer McCormick Property Development.
"The centre pays meticulous attention to top design, apt retailer mix and the daily shopping needs of one of the wealthiest township suburbs in the country."
Highlighting its thoughtful design, McCormick points to Diepkloof Square's covered food court as a vibrant space for the community. "Diepkloof Square is more than a shopping centre, it's a town square - a place to meet and share a sense of community."
McCormick Property Development has pioneered retail development in South Africa's emerging markets since 1983 and has 49 completed developments to its name.
For Diepkloof Square's development, McCormick partnered with leading African black-owned and managed investment holding company Shanduka Group.
Leasing Diepkloof Square is Retail Network Services - a full-service specialist retail leasing company with successes such as Pan Africa Shopping Centre in Alexandra, Protea Glen Shopping Centre in Soweto, Tsakane Mall in Springs and Jabulani Mall in Soweto to its name.
Gavin Tagg, of Retail Network Services, says the shops and services at Diepkloof Square mirror its upmarket setting.
Yet despite this they still offer a large assortment of grocery and food stores to cater across income groups.
"Diepkloof Square features an array of leading retailers which appeal to everyday needs of this growing local market," he says.
In an area previously underserviced by shopping, retailers have lined up to satisfy Diepkloof 's consumer needs. Besides Pick n Pay and Food Lover's Market, its retail mix includes Ellerines, Beares, OK Furniture, JD Group, McDonalds, King Pie, Steers, Debonairs, KFC, Old Mutual, Nedbank, Standard Bank, Cashbuild, Roots, Vodacom, Pep, Modjo Hair, Randcon Paints and Diepkloof Medical Centre.
With its prime location, modern design, exciting retail mix and unmatched local shopping experience, Diepkloof Square also offers generous parking and excellent access to public transport with an adjacent existing taxi rank.
"Diepkloof is a strong community with ample amenities that create a vibrant node for its residents and form a natural retail node," says Tagg.
"It is attracting an increasing number of middle-class and aspirant residents.
"Diepkloof Square is set to become the dominant retail node in the Diepkloof area and its surrounding suburbs."
Weekend Argus (Sunday Edition)
Soweto entered a new era of convenient, quality retail when Diepkloof Square community shopping centre opened, fully let, on November 29.
Diepkloof Square in Soweto opened last month.
The 16 108 m2 community centre is anchored by Pick n Pay in a 3 112 m2 store and features 50 shops, including a new 1 720m2 Food Lover's Market.
"Diepkloof Square is a really exciting project," says Food Lover's Market group property and business development manager Graeme Liebenberg. "Diepkloof holds a special place in the heart of many South Africans.
"It was one of the earliest communities in Soweto and many influential South Africans live, have lived or passed through this suburb."
In the epicentre of affluent Soweto, Diepkloof Square is positioned in an exciting setting in a growing community in Diepkloof Extension 3 near the N1, with excellent visibility and access from the main arterial road serving Diepkloof, Immink Road.
"Diepkloof Square will provide quality retail in a smart, modern setting - giving residents easy access to tailormade convenience shopping," says Jason McCormick, the managing director of developer McCormick Property Development.
"The centre pays meticulous attention to top design, apt retailer mix and the daily shopping needs of one of the wealthiest township suburbs in the country."
Highlighting its thoughtful design, McCormick points to Diepkloof Square's covered food court as a vibrant space for the community. "Diepkloof Square is more than a shopping centre, it's a town square - a place to meet and share a sense of community."
McCormick Property Development has pioneered retail development in South Africa's emerging markets since 1983 and has 49 completed developments to its name.
For Diepkloof Square's development, McCormick partnered with leading African black-owned and managed investment holding company Shanduka Group.
Leasing Diepkloof Square is Retail Network Services - a full-service specialist retail leasing company with successes such as Pan Africa Shopping Centre in Alexandra, Protea Glen Shopping Centre in Soweto, Tsakane Mall in Springs and Jabulani Mall in Soweto to its name.
Gavin Tagg, of Retail Network Services, says the shops and services at Diepkloof Square mirror its upmarket setting.
Yet despite this they still offer a large assortment of grocery and food stores to cater across income groups.
"Diepkloof Square features an array of leading retailers which appeal to everyday needs of this growing local market," he says.
In an area previously underserviced by shopping, retailers have lined up to satisfy Diepkloof 's consumer needs. Besides Pick n Pay and Food Lover's Market, its retail mix includes Ellerines, Beares, OK Furniture, JD Group, McDonalds, King Pie, Steers, Debonairs, KFC, Old Mutual, Nedbank, Standard Bank, Cashbuild, Roots, Vodacom, Pep, Modjo Hair, Randcon Paints and Diepkloof Medical Centre.
With its prime location, modern design, exciting retail mix and unmatched local shopping experience, Diepkloof Square also offers generous parking and excellent access to public transport with an adjacent existing taxi rank.
"Diepkloof is a strong community with ample amenities that create a vibrant node for its residents and form a natural retail node," says Tagg.
"It is attracting an increasing number of middle-class and aspirant residents.
"Diepkloof Square is set to become the dominant retail node in the Diepkloof area and its surrounding suburbs."
Weekend Argus (Sunday Edition)
How to build a credit history for your home-loan
How to build a credit history for your home-loan
Contact us for advice and assistance. (www.prop-law.co.za)
In today's real estate market it is imperative for consumers to establish an excellent credit record and maintain it.
By establishing a credit history, consumers ensure their best possible chance of bond approval, says Adrian Goslett, CEO of RE/MAX of Southern Africa.
"Having a favourable credit record is essential for consumers who aspire to own property. While lending criteria is not as stringent as it was when the National Credit Act (NCA) was initially introduced, the requirements in the current market are still strict and it is likely to remain that way for some time," he says.
"Just as important as a positive credit score is an established credit history that shows that the consumer can conduct their credit responsibilities in a favourable manner. A consumer's credit history will have an impact on whether or not the loan is granted and if the loan is granted, it will influence the interest rate at which the bank will finance the deal. Financial institutions use this information to assess the probability of the applicant defaulting on their payments, which will in turn give them an idea of whether or not granting the loan is a high risk. Those who have finished their studies and are preparing to enter the job market will need to ensure that they take the necessary steps to build a good credit history."
According to Goslett, financial institutions will generally look at how a prospective homebuyer has conducted their credit accounts over the last six months, so if an applicant wants to ensure an optimum chance for approval, they will need to have an excellent credit record and history for at least the six months prior to submitting their application. He notes that establishing a credit history is slightly more challenging due to the fact that lenders are extra cautious of new applicants. Goslett offers a few tips for so those who want to establish a credit history and are applying for credit for the first time:
•Easy does it
Don't apply for too much credit at once and only apply with a reputable credit provider. Goslett says that it is best to start off slowly and only apply for small amounts that are easily manageable. He explains that applying for too much credit will send the incorrect message to the lender and they will think that you are desperate. It is also important to only make one application at a time, as too many applications for credit facilities will have a counterproductive effect that could negatively impact the consumer's credit score. Pay down accounts as soon as possible, and be sure you don't take out more credit than you can afford to pay back.
•The power of three
As a general rule the consumer will require at least three lines of credit. With less than that the credit history might be considered to be too thin, however with more it may be considered too much. Goslett says that the golden rule is for consumers to make sure that they always leave a 30% or higher gap between what they owe and the credit limit as lenders will look for this minimum gap. It is also vital to still have the necessary disposable income required for bond approval in the future, so work out a strict budget and stick to it.
•Have different types of credit
The credit score algorithm likes to see different kinds of accounts. Applicants should not just have revolving credit, but where appropriate, a closed-end loan or account such as a car loan. Goslett says that how the various accounts are managed is more important than the variety of the credit. He notes that is very important that all accounts are paid according to the loan agreement and no late payments are made. This will reflect responsible financial behaviour.
•Deposit money into a savings account
Start to build a good bank account balance by depositing money into a savings account each month for your home loan deposit, as this will show financial stability. Goslett says that the fact that you have a deposit saved up will stand you in good stead and improve your bond approval chances.
Goslett concludes by saying that consumers should remember that even with an established credit history and excellent record, homeowners will need to be able to afford their monthly repayments. Affordability and disposable income will remain the crux of the bond approval process in the year ahead.
RE/MAX Press Release
Contact us for advice and assistance. (www.prop-law.co.za)
In today's real estate market it is imperative for consumers to establish an excellent credit record and maintain it.
By establishing a credit history, consumers ensure their best possible chance of bond approval, says Adrian Goslett, CEO of RE/MAX of Southern Africa.
"Having a favourable credit record is essential for consumers who aspire to own property. While lending criteria is not as stringent as it was when the National Credit Act (NCA) was initially introduced, the requirements in the current market are still strict and it is likely to remain that way for some time," he says.
"Just as important as a positive credit score is an established credit history that shows that the consumer can conduct their credit responsibilities in a favourable manner. A consumer's credit history will have an impact on whether or not the loan is granted and if the loan is granted, it will influence the interest rate at which the bank will finance the deal. Financial institutions use this information to assess the probability of the applicant defaulting on their payments, which will in turn give them an idea of whether or not granting the loan is a high risk. Those who have finished their studies and are preparing to enter the job market will need to ensure that they take the necessary steps to build a good credit history."
According to Goslett, financial institutions will generally look at how a prospective homebuyer has conducted their credit accounts over the last six months, so if an applicant wants to ensure an optimum chance for approval, they will need to have an excellent credit record and history for at least the six months prior to submitting their application. He notes that establishing a credit history is slightly more challenging due to the fact that lenders are extra cautious of new applicants. Goslett offers a few tips for so those who want to establish a credit history and are applying for credit for the first time:
•Easy does it
Don't apply for too much credit at once and only apply with a reputable credit provider. Goslett says that it is best to start off slowly and only apply for small amounts that are easily manageable. He explains that applying for too much credit will send the incorrect message to the lender and they will think that you are desperate. It is also important to only make one application at a time, as too many applications for credit facilities will have a counterproductive effect that could negatively impact the consumer's credit score. Pay down accounts as soon as possible, and be sure you don't take out more credit than you can afford to pay back.
•The power of three
As a general rule the consumer will require at least three lines of credit. With less than that the credit history might be considered to be too thin, however with more it may be considered too much. Goslett says that the golden rule is for consumers to make sure that they always leave a 30% or higher gap between what they owe and the credit limit as lenders will look for this minimum gap. It is also vital to still have the necessary disposable income required for bond approval in the future, so work out a strict budget and stick to it.
•Have different types of credit
The credit score algorithm likes to see different kinds of accounts. Applicants should not just have revolving credit, but where appropriate, a closed-end loan or account such as a car loan. Goslett says that how the various accounts are managed is more important than the variety of the credit. He notes that is very important that all accounts are paid according to the loan agreement and no late payments are made. This will reflect responsible financial behaviour.
•Deposit money into a savings account
Start to build a good bank account balance by depositing money into a savings account each month for your home loan deposit, as this will show financial stability. Goslett says that the fact that you have a deposit saved up will stand you in good stead and improve your bond approval chances.
Goslett concludes by saying that consumers should remember that even with an established credit history and excellent record, homeowners will need to be able to afford their monthly repayments. Affordability and disposable income will remain the crux of the bond approval process in the year ahead.
RE/MAX Press Release
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