All the news and views of property and its future in South Africa.

BUYING|SELLING
Building costs make homes too dear

Fri, 29 Jun 2007

New homes will cost twice as much just five years from now, thanks to rocketing building costs.

According to Tony Clarke, managing director of Rawson Properties, building costs are rising at 17 percent per annum, which in turn are pushing up the cost of new homes. As a result, he says, now is a good time to invest in the residential market.

The Western Cape market in particular is looking likely to see the biggest gains, despite seeing a slow-down in sales.

Lower end homes

At the moment, small properties in the Western Cape have an average price of R759 604, medium-sized bracket properties an average value of R1.04-million and large-sized properties an average of R1.5-million.

In all categories these prices are significantly higher than the SA national averages. The homes at the lower end of the market are still appreciating fastest (by 18 percent per annum).

That’s why Clarke believes that the best buys right now are in Cape Town in the fringe areas of the traditionally high-priced suburbs like Plumstead , Kirstenhof, Wynberg and Observatory. Coming off a low base, these are appreciating fastest as a result of demand from fast-growing upwardly mobile new buyers.

Property cycles

Residential developments and renovated homes in and around commercial centres, particularly the CBD of Cape Town are also booming because prices there are still “reasonable” and people have grown tired of the time wastage of commuting.

In Johannesburg, he said, the investment hotspot is the 2010 sport precincts such as Ellis Park, which is now undergoing an urban rejuvenation of unprecedented proportions.

According to Clarke, “Over the last 30 years, economic cycles have sent property prices up and down — but property has had an average annual growth of 18 percent and remains the safest of all investments.”

Lower asking prices

He says that while the boom of the last few years has enabled prices to catch up with international levels, we still have a long way to go.

“But this stabilisation (with 74 percent of properties now sold below the asking price) has led to more realistic prices and increased buyers’ interest."

Buyers are now putting in bids 15 to 20 percent below the asking price and are less urgent to conclude deals because their options have increased. The implementation of the Credit Act in June has further strengthened buyers’ positions because some bond applicants will find that they do not qualify for bonds at the level they had anticipated.

Cape Town taking the lead?
Presenter: Lindsay Williams Guest(s): Kura Chihota

Is the most expensive South African office space located in Sandton with all those fancy new glass towers that are going up? Maybe not. Classic Business Day gets Kura Chihota on the line from Khokhela Properties

LINDSAY WILLIAMS: According to Kura Chihota the most expensive office space will soon be located in an “iconic position” in Cape Town. Kura, is this just an isolated case, or is there a trend emerging?

KURA CHIHOTA: In this particular instance it’s an isolated case - this is at the top of the stunning development that Madison is doing at the end of the Cape Town Convention Centre. It’s about 1,200 square metres of the total 16,000 square metres. The rest of the building will still be pretty trend setting at about R120 per square metre, but there are other areas in Cape Town that are competing at that sort of a level.

LINDSAY WILLIAMS: Yes, I can actually see the building from the Classic Business Day Cape Town studio window at the moment - that’s the sixteenth floor penthouse suite at Cape Town’s premier address, the superbly located convention tower. What are you going to get for that?

KURA CHIHOTA: Madison is putting it out at around R200 a square metre. If you compare that with international rentals that are bumping happily around R1,300 a square metre taking London as the highest benchmark price it’s still a bargain for those lads who want a spot in the sun.

LINDSAY WILLIAMS: Yes, very true. It might be a little bit difficult commuting down here, but I get your point...

KURA CHIHOTA: It’s nice for board meetings and stuff…

LINDSAY WILLIAMS: What do you think it’s going to do? It’s all very well that Madison is putting this particular development out at this price, but whether it’s going to be taken up or not is another matter, and whether there’s a knock-on effect on the Cape Town central business district is another thing. Is there a shortage of office space in Cape Town?

KURA CHIHOTA: Absolutely, there is a shortage. The trend has seen office space converted to residential, with upwards of 3,000 or 4,000 units coming into the city. That’s really taken existing C-grade stock out of the market, and when that tightens up people have moved to the B-grade stock, and when that runs out people upgrade to the A-grade stock. The real estate dynamics of the Cape Town city bowl means you have to be there - it’s got good transport, it’s got the amenities one needs, and there’s a shortage because God isn’t making any more land between the mountain and the sea…

LINDSAY WILLIAMS: What do you think of the theory that more and more businesses if they’re flexible enough are now moving down from smokey and crime-ridden Johannesburg to Cape Town because of the lifestyle, and maybe the cost of living is less here - is that a reality?

KURA CHIHOTA: High value intellectual property industries like financial services can do that, but the last research shows 70% of the JSE-listed companies still have their headquarters up in Gauteng. The Cape lifestyle is attractive, but it’s only a certain kind of business that can afford to be there or telecommute…

LINDSAY WILLIAMS: Are international companies relocating to Cape Town? We hear a lot about call centres, and companies that don’t need to be tied to one geographical location like IT companies - is that a myth?

KURA CHIHOTA: It’s not a myth. There is strong international interest - Cape Town is poised for a boom with the confidence shown in the purchase of the V&A, and the mixed use development around the Greenpoint Stadium is creating an international buzz. The demand is for well-located space that’s on a popular route - and Cape Town is by all means on that popular route. That’s a trend we are going to see...

LINDSAY WILLIAMS: This should be good for the GDP of the region - obviously the GDP of South Africa is always going to be dominated by Gauteng, with over 60% generated in that particular node - but will Cape Town catch up slowly in significant percentage terms?

KURA CHIHOTA: I think the jury is out. The dynamics of real estate is about fixed locations - New York is Madison Avenue. You could build in the next street, but that wouldn’t be the same thing. In Cape Town there are some real geographical issues - the road network there to get people around really prescribes where an office complex of scale needs to be. Johannesburg has a number of nodes that can take significant development - there’s something happening at 1 Sandton Drive where Fricker Road has been developed out - so there are alternatives in Johannesburg. There’s a compression factor in Cape Town because of the limited supply of land and strong demand - they’re coming off a lower base, but there’s added pressure without available land to develop to demand.

VERY good read...what will be the next buy? I can already see the Durban Point becoming a purchase, so too the Tongaat Hulett land all along the north coast. As for the Centrum site...surely someone see's the value there?

The Property Prance
04 Jul 2007 - Finweek -

Intro
Some of the wealthiest property investors in Britain, Europe and the Middle East have hit town ready to bulk up their global portfolios with large investments in prime South African real estate

The bigger players have billions to spend. And they're not averse to aggressively outbidding South African buyers for what they perceive to be highly undervalued commercial and leisure property assets. First prize for most of those investors is to buy directly into single, mixed-use developments that offer a combination of retail, office, hotel and residential opportunities - deals that have the potential to become another V&A Waterfront, Century City or Melrose Arch.

But some are also making a play for JSE-listed companies with sizeable underlying property portfolios: gaming/hotel operators and corporates alike. Foreign investors aren't necessarily interested in the core businesses of such companies - it's more about stripping out the underlying property assets. Talk is that a number of offshore players are keen to get their hands on the large tracts of undeveloped land owned by the likes of Tongaat-Hulett and AECI.

To date, the biggest single property deal in SA involving foreign investors was the sale of the V&A Waterfront to British-based London & Regional Properties and its Dubai partner, Istithmar PJSC, in September last year for R7bn.

Both London & Regional - recently rated by the London Financial Times as the biggest privately owned property company in Europe, with assets of around R100bn - and Istithmar want to increase their exposure to SA property.

Finweek hears that London & Regional is already negotiating an offer to buy another iconic SA development: Melrose Arch. Industry insiders place a value of at least R3bn on the trendy, mixed-use precinct just off the N1 north of Johannesburg.

London & Regional is also rumoured to be one of the suitors eyeing listed casino/resort operator Gold Reef Resorts. Earlier this year, London & Regional was involved in unsuccessful talks with Peermont Global, another SA gaming/hotel operator.

Gold Reef Resorts recently said that it was in talks with three or four "selected" parties that could result in a buyout offer for the entire company. Mvelaphanda chairman Tokyo Sexwale, together with Durban-based businessman Vivian Reddy and US-based casino group Harrah's, are other likely bidders.

Casinos in the Gold Reef stable include Gold Reef City (south of Johannesburg), Garden Route (Mossel Bay), Golden Horse (Maritzburg), Goldfields (Welkom) and a majority stake in Casino Mykonos (Cape West Coast). The deal is estimated to be worth R10bn. It will be interesting to see to what extent SA buyers will be prepared to match or exceed the bids of their offshore competitors.

Meanwhile, Dubai-based Istithmar subsidiary Leisurecorp earlier this month announced it had bought Pearl Valley Signature Golf Estate and Spa in the Cape Winelands. Leisurecorp isn't disclosing what it paid for Pearl Valley or how much it will spend to turn the 170ha development into a major international golfing resort. However, Leisurecorp CEO David Spencer says the acquisition was a "significant" investment, both in terms of the initial price paid and the development plans it hopes to implement.

Spencer says it's likely that Istithmar and its real estate investment arm will be involved in more deals in SA. Says Spencer: "SA is currently one of our leading target markets, partly because of the growth in the country's leisure and tourism sectors and partly because of the boost we expect from the 2010 Soccer World Cup."

Lehman Brothers, one of the US's biggest investment banks and asset managers, has also recently entered the fray via a joint venture with JSE-listed Madison Property Fund Managers. Though the deal hasn't yet been officially announced, a large tract of land on the outskirts of Cape Town has apparently been bought for R500m to develop a mixed-use retail, office and residential precinct comprising bulk space of at least 100 000sq m.

Then there's Kuwaiti developer IFA Hotels & Resorts, which is expected to announce a major acquisition within weeks. It's not unlikely that IFA has its sights on AltX-listed golf estate developer Acc-Ross.

IFA's SA-listed arm already owns stakes in other golfing estates, including Zimbali Coastal Resort (near Ballito on the KwaZulu-Natal north coast) and the Cape Winelands estate Boschendal. IFA also recently entered the Namibian hospitality market in a R550m joint venture with Ohlthaver & List.

Other foreign players include Irish developer Howard Eurocape, which is ploughing R500m into the mixed-use Mandela Rhodes Place in Cape Town's CBD. Offshore private equity funds are also starting to tap into SA's commercial property market.

An Irish consortium recently appointed SA corporate finance outfit and designated AltX adviser Bridge Capital to place around R1bn in directly held office, retail and industrial buildings. Ron van der Bos, who together with Tobias Hegele and Jeremy Clark head Bridge Capital's property asset management division, says they've already bought stock worth R300m on behalf of that client. They're in the process of setting up a second fund for the same Irish client and are involved in talks with other British and European offshore consortiums to set up similar property investment funds.

The list goes on. But why the sudden surge in interest in SA's commercial and leisure property assets?

"It's simple. In global terms our market offers value. And with so much offshore money looking for a home, it was only a matter of time before foreign property investors would turn to SA,'' says Arnold Meyer, ex-Broll CEO and recently appointed MD of London & Regional's Africa operations.

Meyer says foreign players have different perspectives on extracting value and structuring transactions. "So foreign players such as London & Regional view SA as a long-term buy."

That does perhaps suggest why international investors are prepared to pay more for prime properties (think V&A Waterfront) than their SA counterparts.

Meyer won't confirm whether London & Regional is bidding for either Melrose Arch or Gold Reef Resorts, except to say that it's involved in "various discussions with various parties". Though London & Regional is a major player in emerging economies, including Poland and Russia, its 50% investment in the V&A Waterfront was its first acquisition outside Europe.

Meyer says SA, and Africa in general, offer double the growth potential over the next five years than any European property market. He says it's likely that London & Regional could have 20% of its assets in Africa within five years.

Craig Ewin, CEO of Old Mutual-managed SA Corporate Real Estate Fund, says there's no doubt that international property players are increasingly looking at emerging markets as the risk profiles of developing economies improve. Ewin says the general view is that international investors can no longer afford to ignore high growth opportunities in emerging economies.

Says Ewin: "South African real estate offers a huge value proposition. Investment Property Databank (IPD) performance figures show that SA's direct commercial property has outperformed all international markets over the past three and five years. Yet we still offer an average income yield that is 200 basis points higher than any other market included in the IPD benchmark."

Madison Property Fund Managers executive director Mike Flax holds a similar view. He says offshore developers regard SA as cheap compared with other emerging markets. "International investors believe SA is now where Poland was five years ago." Flax says in recent years foreign investors have poured billions into Poland's previously underdeveloped commercial property market, unlocking plenty of upside in the process. The same is bound to happen in SA.

Flax says the V&A Waterfront sale has been a major catalyst for further money flow into SA. "The world has suddenly been forced to stand up and take notice of SA."

But it's not only perceived value that's luring more foreign property players to SA's shores. Phillip da Silva, vice-president of operations for IFA Hotels & Resorts in Africa and the Indian Ocean, says SA's highly developed transport and tourism infrastructure is a major plus for international hotel and resort developers.

So too is security of tenure. For example, Da Silva says that SA is far more attractive than Zanzibar or Mozambique, where property investors can't obtain freehold title.

Van der Bos says that SA's well-developed legal and financial framework should also not be underestimated. Even the language factor plays a role. For example, Van der Bos says German investors feel more comfortable entering an English-speaking country such as SA than neighbouring Poland, where language is a barrier.

However, industry commentators agree that the one factor that could slow the offshore scramble for SA property is a growing shortage of investment stock. But that could prompt more overseas investors to go the indirect route via listed property loan stocks and property unit trusts.

Although some may bemoan the fact that SA's crown jewels are increasingly finding their way into foreign hands, Growthpoint Properties CEO Norbert Sasse says the pros of offshore participation far outweigh the cons. "Increased foreign competition for prime SA property assets will help put us on the map as a preferred global investment destination - which can only be positive for our real estate market." Sasse says some of these international players have the vision, money and skills to turn underutilised assets into world-class developments.

But there's also no doubt that foreign interest will push SA property prices up. Flax says increased competition for SA property - both physical and listed - will result in higher prices and lower yields. "However, the positive spin-off is that the expertise that international players bring to SA can only sharpen the skills of our players."

Ewin agrees: "More international investors vying for SA property must affect prices. But if SA wants to play in the international environment, we can't bury our heads in the sand and think we're still going to control our own market."

dysan could you also please post the article about good prices in um-shlarn-ga, not sure where i read it

Anyone got a clue where this "large tract of land is" on the outskirts of the CBD?

_____________________________________________________________________


Lehman Brothers, one of the US's biggest investment banks and asset managers, has also recently entered the fray via a joint venture with JSE-listed Madison Property Fund Managers. Though the deal hasn't yet been officially announced, a large tract of land on the outskirts of Cape Town has apparently been bought for R500m to develop a mixed-use retail, office and residential precinct comprising bulk space of at least 100 000sq m.

Full Article: http://mickson.blogspot.com/2007/07/extreme-hype-oohhhh-this-is-going-to.html

The Telegraph - London


Max Davidson
Last Updated: 12:01am BST 12/05/2007


South Africa's future is looking brighter, says Max Davidson

Wine-tasting? Bird-watching? A round of golf? A chukka of polo? A ride in a gondola? You name it, South Africa has it. Was it really only twenty years ago that this was a pariah state?

Things are happening so quickly that it can be hard to keep up.

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Reminders of the old South Africa are not hard to find. From the waterfront cafes in Cape Town one can still see Robben Island, where Nelson Mandela was a prisoner for 27 years.

This is still, manifestly, a country where there is a yawning gulf between the Haves and Have-Nots. Apartheid may be history, but poverty afflicts black people disproportionately. You only have to look at the shanty towns next to Cape Town airport - "informal dwellings", as they are coyly referred to - to see how many social and economic challenges remain.

Crime is a running sore in some areas. But there is also an optimism in the air, a faith in sustainable economic growth, that you can almost smell.

Buy in the right area at the right time and you are laughing. An ex-city planner, 49-year-old Japie Hugo, is typical. The threebedroom house he bought for 775,000 rand (just under £60,000) in 1997, in the supertrendy Camps Bay suburb of Cape Town is now worth nearly nine million (just under £700,000). But perhaps the most intriguing thing about 21stcentury Cape Town is the renaissance of the central business district (CBD).

Areas that once used to be regarded as no-go areas at night are being coaxed back into life. There are well-lit pedestrian precincts, police patrols, teams of graffitti-busters, as a great city tries to put its house in order.

"We want to make the centre of the city the heartbeat of the whole region," says Andrew Boraine, CEO of the Cape Town Partnership, a joint publicprivate venture. "There need to be people living here, not just working here." And he is getting his wish. Some 3,000 new inner- city apartments have come on the market in the last six months, at an average price of 800,000 rand (about £60,000).

One of the most impressive properties, right in the heart of the city, is Mandela Rhodes Place, a sparkling one-billionrand (£76 million) development, incorporating everything from stylish high-rise apartments, with spectacular views of Table Mountain, to an inner-city winery.

"Property prices in the CBD are about to rise stratospherically," predicts Frank Gormley, CEO of Eurocape, the developer of Mandela Rhodes Place. Gormley is Irish and, like many of his compatriots, sees parallels between the Cape Town of today and the Dublin of twenty years ago. "This city is in the infancy of its renaissance. By the time of the 2010 Football World Cup, there will be no stopping it."

Just a developer's blarney or sound economic sense? Time will tell. But there are plenty of other developers in the Western Cape putting their money where their mouth is.

Half an hour to the west of Cape Town is the seriously overthe- top Century City, a new development which is trying to be all things to all people and, in places, making a good job of it.

As I wander through the vast shopping mall, then take a motorised gondola ride to an outsize apartment block called Knightsbridge, next to some pseudo-Italian waterside villas, I could be on the Strip at Las Vegas. But there are grace-notes amid the kitsch.

There is a large wetlands area, heaven for bird-watchers, and a well-designed purpose-built retirement village called Oasis, where units start at 470,000 rand (just over £35,000).

Another 25 miles to the west is Stellenbosch, an old university town and one of the prettiest parts of South Africa, with mile upon mile of vineyards surrounded by mountains. It is as tranquil as Century City is boisterous and there are some pukka new developments, none more pukka than Val de Vie, a winelands estate near the picture-postcard village of Franschhoek.

This is prime South African real estate. You can buy a 1,000 square metre plot for about £100,000, which is reasonable considering the calibre of the property.

The Val de Vie estate is owned by an old Huguenot family, and you can see French touches everywhere.

It is a lovely restful spot and only an hour from Cape Town. Deliciously unexpected are two full-size polo fields. Cowdray Park in the veldt, with a bottle or two of local wine at the end of the last chukka? It is a mouth-watering prospect - and it's symptomatic of a country where, after the lost years of apartheid, developers are daring to believe in a better future.

What's the score?

Why buy


The South African economy recorded a five per cent growth last year
Residential land prices rose by 14.4 per cent last year
The perfectly opposite seasons (South Africa enjoys its summer while we in the Northern Hemisphere are shivering in our winter) and the minimal time difference make South Africa a popular tourist, second home and retirement destination
There are 7.39 million foreign tourists to a country with a population of 47 million
Why not

Some investors feel the best profits have already been made
Concerns remain over the political situation in neighbouring Zimbabwe
Caution has spread across the property market this summer following the hike in interest rates and possible further increases before the end of the year. As a result, investors are looking to the development market with a long-term view
Fair trade? The daily earnings of a vineyardworker in the Western Cape is about £7.50
Invest? 8/10

Make mine a wine

Stellenbosch was settled in 1679 by the Dutch, who found the region's cool climate and fertile soil ideal for wine-making.

Although South Africa is well behind the major producers such as France and Spain it is winning a reputation for sound, solid wines.

Decanter magazine described one year's vintage as including 'big, burly reds'.

The Stellenbosch Wine Route gives the weary house hunter the chance to unwind with a tour of 44 cellars which produce a wide variety of red and white wines.

Most of the cellars offer cellar tours as well as lunches in their shaded gardens with a bottle of wine.

The route takes you along several winding country roads through vine-covered hills and valleys, dotted with white-washed homesteads.

Wine appellations to look out for: Constantia, Darling, Helderberg, Paar and Walker Bay
Top producers: Thelema, Devon Hill, Jordan, and De Trafford

Try these...

£100,000

http://www.telegraph.co.uk/property/graphics/2007/05/12/opsafrica1.jpg

Winelands Lifestyle Estate

Upmarket polo estate, Val de Vie Estate, in beautiful winelands of Western Cape Price 1,000 sq m plots from £100,000
Contact 0027 83794 0404

£35,000

http://www.telegraph.co.uk/property/graphics/2007/05/12/opsafrica2.jpg

Retirement village with a difference

Purpose-built units in Oasis Village, in luxury development Century City, west of Cape Town Price From £35,000
Contact Rabie, 0027 21 551 3354, www.rabie.co.za

£140,000

http://www.telegraph.co.uk/property/graphics/2007/05/12/opsafrica3.jpg

Inner city chic

Stylish modern apartments in Mandela Rhodes Place, in heart of Cape Town CBD Price From £140,000 to £505,000
Contact 0353 1667 0099, www.christiesestates.com

the two new towers on the corner of strand street along with the golden acre upgrade and train station upgrade is really going to make a difference since they would improve the area and atmosphere along with all the great things the Mandela Rhodes place has done, then on the other end of adderley street, you have the convention tower and cticc expansion, media city construction, monte carlo building upgrade..so you really have the entire adderley street being transformed, with each project playing its part.

The commercial and industrial property market is buoyant at present, and a number of complexes are being developed all over the Peninsula, and the Cape Town CBD in particular.

To keep up with demand, Ian Slot, MD of Seeff Atlantic Seaboard, CBD and City Bowl, has launched a revamped and revitalised Seeff commercial arm.

The Seeff CBD commercial arm is headed by Chris Snijman, who says development in the CBD is going to be phenomenal - from the Green Point development and the stadium, through to the upgraded V&A Waterfront, past Somerset Hospital and the addition to the International Convention Centre, linking up with the new development at the Foreshore and the harbour.

"Some commercial sectors are particularly popular," he says. "There is a huge demand for hotels, and also for restaurants and restaurant sites. These must be in good positions. The commercial field is not building to 2010 as such - it is long-term for future development. Investors spending millions of rand on a hotel need to see it surviving beyond 2010."

He says the hotel buyers are mostly foreigners and that business is driving the growth in industrial parks.

The caption describing the development mentioned as the Oasis retirement development in Century City. However the picture above is of the Island Club, completed in 2005, which is the largest residential development in Century City which also includes the four-star Protea Hotel within the complex. The Oasis retirement development on the other hand is a 10-storey block that was just recently completed.

Cape Town will soon resemble a massive construction site as work begins on projects worth R10-billion, most of which are expected to be completed before 2010.

Public transport is the big winner, with the city, the province and national government spending R6,5-billion. This includes the taxi and bus recapitalisation programmes.

Work will be spread over the next three years, and some of the projects have already started.

The airport is undergoing a R1,3-billion facelift with the building of a new terminal. Another R410-million will be spent on the rail link between the airport and the CBD.

'This will be the lasting legacy of hosting the event'
Work on the Klipfontein Corridor is set to start in the next few months, with R190-million spent on reconfiguring the road to accommodate permanent bus and bicycle lanes.

Final touches are being made to the public transport lane on the N2, which will open within weeks. A similar lane will be created on the N1.

Construction of viaducts over the N1, which will ease traffic congestion at the Koeberg interchange, will start in January.

Work on the railways has already begun, with Metrorail committing R1,2-billion to upgrading infrastructure, refurbishing coaches and buying new trains.

An additional 4,5km of rail is being constructed in Khayelitsha, at a cost of more than R400-million.

The N2 Gateway project will see a further injection of R750-million.

The Conradie Hospital site, already sold for R90-million, will be developed into 1 500 affordable housing units.

The bulk of the money will be set aside for a primary healthcare upgrade, while R5-million will be used for a low-cost housing development.

Cape Town station will get a much needed R95-million upgrade, and work is already under way on the R3-billion Green Point Stadium.

A total of R11-million will be spent on fan parks across the province.

The successful Cape Town International Convention Centre will be extended to the Customs House at a cost of R800-million.

Negotiations with the department of public works are in the final stages, says deputy director general in the department of the premier, Laurine Platzky.

Plans for a hotel next to the extension are also being considered.

Private sector investment includes a R1,2-billion upgrade of the Waterfront. And a massive gap housing project between Macassar and the Strand is in the pipeline.

Construction of six new hotels is expected to start within months.

The Klipfontein Corridor will be the spine of public transport in the city, running from Gugulethu, through Athlone and ending in Mowbray.

Once complete, commuters will be able to use rapid transit buses, which will travel in dedicated public-transport lanes. There will also be dedicated bicycles lanes.

The city council's 2010 spokesperson, Pieter Cronje, said: "By harnessing the funds made available nationally for 2010-related facilities, including a new stadium, transport and other upgrades, the city expects post-2010 Cape Town to be a more desirable destination for leisure and business travellers, investors, and of course, its residents.

"This will be the lasting legacy of hosting the event."

Once the infrastructure is in place, the government will focus on getting more people to use public transport, which the authorities say will be safer, cleaner, more comfortable and cheaper than using private vehicles.

Premier Ebrahim Rasool said the massive infrastructure programme was an "opportunity to accelerate key development investments that can be used in the fight against poverty and underdevelopment.

"For ordinary citizens this investment should result in employment in the construction, leisure, transport, tourism and service sectors."

potentially huge results!

Developers await decision on inclusionary housing policy

(Building) CAPE TOWN (July 27) - After months of waiting, South African developers will soon be hearing the final outcome on the national housing department’s policy on inclusionary housing.

The proposed final draft of the government’s policy on inclusionary housing is currently being negotiated between the housing department, commercial property association SAPOA (South African Property Owners Association) and other industry stakeholders, and its results are imminent.

Inclusionary housing refers to government ordinances that require a given share of new construction and development to be made available to low and lower-middle income groups. Taking the form of a mandatory or voluntary ordinance, many cities internationally subscribe to inclusionary housing policies and include countries throughout Europe, the UK, the USA, Canada, Australia, Malaysia and China.

Two approaches have now been proposed for South Africa — namely a voluntary, proactive deal-driven approach that would generally be applied to state-owned land, and a town-planning compliant approach to private land at the level where developers engage with municipalities for re-zoning applications.

Erwin Rode of property valuers and economists Rode & Associates welcomes the two-pronged approach, “particularly compared to the fixed percentage which the government had been adamant about implementing a year ago, and which had caused an uproar among developers throughout South Africa.”

The government was originally looking at imposing a fixed 20% to 30% of units to be set aside for inclusionary housing.

The discussions surrounding the new policy date back to the Housing Indaba held in Cape Town in September 2005, which included representation from the government, banks, property developers and the private sector in general, and during which it was agreed that a policy had to be formulated to accelerate the delivery of housing in order to address the massive backlog in both the rental and ownership markets.

Affordable housing has been defined as the range between the cost of an RDP house (at around R50 000) to the top of the “affordable housing range” (defined at around R300 000). Rental housing is in turn seen to be in the range of R500 to R2 500 per month.

Regarding the on-selling of inclusionary housing to ensure that owners from the same income brackets continue to qualify for the property, it has also been proposed that units resold during the first ten years after construction may only be sold at the original price plus construction inflation. Only after 10 years from date of development would a unit be available for sale at market-related prices.

Outlining how the two approaches would work — voluntary versus the town-planning compliant policy — housing director-general Itumeleng Kotsoane explained that the voluntary approach would be applied to state-owned land, currently belonging to parastatals and government agencies, which would be set aside for housing developments and made available to developers on condition that the developer set aside a percentage for low-income housing.

In the case of the town-planning approach to privately owned land, Kotsoane noted that the policy would be applied in cases where a developer wanted to change the zoning of land from, say, agricultural to residential, in which case the developer would be required to implement inclusionary housing in the new scheme.

Various incentives are also currently being discussed in the form of tax benefits; however, the exact nature of these incentives is yet to be announced.

Rode says government should tread carefully to avoid unintentionally turning off the new-supply tap. The effect might be prices of existing houses shooting through the roof. “After all, no developer will commit to a deal with the authorities knowing full well that his project will not sell,” says Rode.”




Submitted: 27 Jul 2007

potentially huge results!

Developers await decision on inclusionary housing policy

(Building) CAPE TOWN (July 27) - After months of waiting, South African developers will soon be hearing the final outcome on the national housing department’s policy on inclusionary housing.

Rode says government should tread carefully to avoid unintentionally turning off the new-supply tap. The effect might be prices of existing houses shooting through the roof. “After all, no developer will commit to a deal with the authorities knowing full well that his project will not sell,” says Rode.”
Submitted: 27 Jul 2007

Rode is right. This new regulation will only have the effect of depressing the property market and deterring foreign investment which would lower GDP growth and confidence in the SA economy as a whole as this amounts to heavy handed political interterence in the economy by the ANC which seems to be looking after it's own elite interests and the 2009 election by making populist promises. Social engineering does not work now as it did not work under apartheid.

Land restrictions remain on table after release of cabinet report

Property still open to foreign buyers
July 25, 2007

By Roy Cokayne

Pretoria - The threat of restrictions on the foreign ownership of land receded yesterday, but the issue remains on the government's agenda.

A cabinet meeting in Pretoria received and noted the report by the panel of experts on the development of policy on regulation of foreign land ownership.

The report follows the hefty increase in property prices in recent years, which was blamed on land purchases by foreigners.

Pam Golding Property's website is indicative of how residential property is out of the reach of ordinary South Africans in certain areas. Among its sales listings for Clifton is a beach house in for R38.5 million and a four-bedroom apartment for R34 million.

The panel considered the following key recommendations:

n Long-term leasing of land as opposed to outright sale;

n A possible moratorium on sale of land to foreigners;

n The identification of instances where a prohibition on foreign ownership of land could be justified, such as national key points, water catchment areas, land along border lines and international borders; and

n Special ministerial approval in cases where certain categories of land were considered for disposal, such as land earmarked for land reform, restitution or integrated human settlement.

The cabinet statement says it has approved the publication of the report for public comment subject to the inclusion of a comparative analysis of how other countries managed this complex policy matter.

"The final policy will be approved by cabinet after the public has commented on the report," says the statement.

Erwin Rode, chief executive of property services company Rode & Associates, believes the threat of foreign land ownership restrictions is receding. He has the impression that the government is backtracking on the imposition of restrictions.

"The fact that they haven't come up with any hard evidence of foreigners somehow influencing our [property] prices will make it difficult for government to do anything but make a gesture," he said.

John Loos, a property strategist at First National Bank Commercial Banking, said there was "nothing too concrete" on what the policy would be. He did not ultimately believe the recommendations would be draconian.



"They are taking a long time, and the longer it takes the more I'm encouraged, because the more sensible the policy will possibly be. There are concerns about foreign land ownership but the government is also aware of the potential benefits of foreign investment," Loos said.

"There have been suggestions that foreign land ownership has been driving up property prices," he continued.

"The reality is that the economy has been performing strongly and the middle class growing, which has been the main driver of property inflation."

Loos said in support of this statement that property inflation was widespread, even in townships where there was very little foreign interest.

In February the state-appointed panel called for an immediate moratorium on land transactions by non-South Africans, despite preliminary findings indicating extremely low levels of foreign ownership.


Attraction of local equities is fading

Johannesburg - Equities were losing their appeal to foreign investors, Old Mutual Investment Group South Africa (Omigsa) said yesterday.

Peter Brooke, head of macro strategy at Omigsa, said that based on historic price:earnings ratios of US shares and local shares, South Africa might get fewer foreign inflows in the next three years.

Price:earnings ratios reflect corporate prospects, with a high ratio showing a very optimistic outlook on earnings. Foreigners invested R130 billion in South African financial assets last year, with about R72 billion going into JSE-listed shares.

This year investors from abroad have made net purchases of about R50 billion, compared with R55 billion for the same period last year. But Brooke said the real return from all asset classes would be "considerably lower than those seen in the past four years".

Bonds, which have responded to the deterioration in inflation, are expected to yield only 8 percent. Property is forecast to earn about 10 percent, while equities are expected to be the best performer, with returns of up to 13 percent a year over the next three to five years.

Boom time builds up to beyond 2010
30 Jul 2007 - Inet Bridge -

Intro
Government and private sector infrastructure investments are expected to secure the boom in the construction and building industries

By Don Robertson

Government and private sector infrastructure investments are expected to secure the boom in the construction and building industries until well after the 2010 soccer World Cup, according to industry leaders.

They said the government's decision to go ahead with a R400-billion infrastructure programme, an even bigger commitment by the private sector and economic growth rates well above 5% a year would buoy the industries and drive the economy.

Brian Bruce, chief executive of Murray & Roberts, predicted the boom would continue long after 2010 and well "into the teens of the 21st century".

He cautioned, however, that there might be some ups and downs in the industry during this period.

But, despite this caution, construction companies are flocking to list on the JSE's alternate exchange, which facilitates listing of small companies.

Since AltX was established almost three years ago, 14 of the 50 companies listed are related to the building and construction sector with interests in home improvements, heavy construction and building materials and fixtures.

Among the bigger groups are Esor, Sanyati Holdings, Afrimat and the Raubex Group. The total market capitalisation of these companies this week was R20.6-billion, according to an AltX spokesman.

And Stefanutti & Bressan, with annual turnover of R1.7-billion, plans to list on the JSEs' main board on Friday after raising up to R465-million by placing 35 million shares. A limited offer of a further 11.5 million shares will be offered to vendors.

The company believes that revenues will grow to R2.5-billion in 2008. In the year to February, the group earned a net profit of R67.2-million, after the cost of BEE involvement, and expects this to grow to R115-million in 2008.

The group has a 15% BEE involvement through Mowana Investments.

Chairman and co-founder of Stefanutti & Bressan, Gino Stefanutti, said the construction industry was experiencing unprecedented growth and that there was "a positive picture of long-term growth for the industry".

Last month, the FNB Civil Construction Confidence Index, compiled by the Bureau for Economic Research recorded another increase.

Cees Bruggemans, chief economist at First National Bank, said that the figure reflected "very favourable business conditions". It is reported that the industry had grown by 13% a year since 2003.

The SA Federation of Civil Engineering Contractors noted that the number of people in the construction industry had risen to 114 000 in the first quarter of this year .

But, the FNB Index found , a shortage of skilled labour was affecting construction activities and impinging on completion times. Training would have to be accelerated to contain construction costs as a result of higher wages .

Power generation, with Eskom looking at another nuclear power station, will also help keep activity high. Power generation infrastructure development will begin in earnest next year and this is a 25-year project.

Transport, water and sanitation, schools and hospitals will need to keep pace with the macro- economic growth, said Bruce.

The attractiveness of the building and construction sector has attracted an unsolicited bid for building materials supplier Iliad Africa from a consortium led by Absa Capital. Talks are continuing.

Last week Iliad said it had acquired the Gauteng-based, R220-million-a-year Thorpe Timbers . Recently, the group bought USM Building Supplies and Lumber City in Lephalale (Ellisras). The combined acquisitions should add R350-million to revenues.


South Ocean, the Johannesburg-based manufacturer of building wires, has spent R10-million on the first phase of its expansion plans by purchasing new machinery that will increase its capacity by 10%.

The company, which was listed in February, has begun the second phase of expansion at a cost of R30-million for new machinery, buildings and working capital, which will add 15% to capacity.

The company recently acquired Radiant Lighting for R485-million, which expands its operations into decorative lighting, lamps and bulbs and electrical products.

Black empowerment group Afrimat announced two weeks ago that it had purchased two quarries and a concrete block-and-brick factory in KwaZulu-Natal, its second acquisition since listing in November. This brings its number of quarries to 22 and brick factories to nine.

Property24.com

'don't Ban Foreign Buyers' - 2007/08/02

With the resurgence of the foreign property ownership debate, the commission has tabled a draft policy that restricts ownership under certain conditions. Property experts believe the reasons are largely invalid.

Tony Clarke, the new MD at Rawson Properties, has added his voice to many others in the SA property sector who believe that ownership of property should continue to be open to all foreigners and especially those investing in other spheres of the economy.

"For obvious reasons," said Clarke, "this has become a highly emotive issue but the reasons advanced so far for banning or limiting foreign property ownership are largely invalid."

The argument that foreign buyers push up the average prices of SA residential land, said Clarke, remains totally unproven and he doubts if it is true.

"Consider the facts," he said, "firstly, foreigners have in the last six years been responsible for less than 1% of the value of SA residential purchases – how can so small a figure affect the overall price? Secondly, foreigners buy mainly at the top end of the market so have little or no effect on middle and lower bracket prices. Thirdly, our experience has been that these foreign buyers negotiate as hard, if not harder, than locals and refuse to overpay. Fourth, foreign buying has slowed down after the record figures recorded during the 2004/2005 summer season. This is probably due to a stronger rand and South Africa's property price growth that took place over that period."

Clarke's statements were supported by the Rawson research team which said that the average price of homes sold to non-South Africans in 2005 was R2 million. In 2006 it was R2,5 million and in 2007, so far, it has been R2,7 million, i.e. all very definitely in the top bracket.

Clarke said that in courting foreign capital investment SA businessmen have always been able to play the free enterprise card strongly, to sell South Africa on the basis that it is a society which respects the freedom of the individual and allows businesses the opportunities to grow.

"To restrict foreign ownership would send out the wrong message to the very people we want to attract," said Clarke. "Foreign property transactions also boost the economy during the buying and selling process, as various taxes become payable, i.e. Capital Gains Tax and Transfer Duty.

The boom in property prices, he added, was due to factors already widely publicised by, for example, the latest Absa Residential Property Market Review: the growth of the middle class, fairly low interest rates and a drastic shortage of land zoned for new development, coupled to rising construction costs.

"If the state wants lower house prices," he says, "they must widen the urban fringe and zone far more land for residential use. The shortage of suitable land is a large contributor to raising property prices."

Clarke added that the National Credit Act is already slowing down house sales and this is likely to continue – but, he added, house prices, particularly in the middle and upper brackets, continue to appreciate very satisfactorily.

This approach echoes the sentiments voiced in a report compiled by the Group Economics department of Standard Bank on the foreign ownership issue last year.

"The report," says Clarke, "makes it clear not only that most countries in the world are not averse to foreign ownership but also that if moratoriums are imposed they are likely to deter foreign direct investment and the influx of skilled workers – these we need badly – and could also impact negatively on tourism because foreigners with local property come here far more frequently than those without it.

"Obviously," added Clarke, "special rules could apply to areas subject to land reform, agricultural property and environmentally sensitive areas."

Clearly most countries have regulations in place to guide foreign ownership, but few place an outright moratorium on foreigners wanting to buy property in their country.

"The report shows that Australia, for example, allows foreigners to buy up to 50% of any multi-unit project and will allow sales of vacant land provided that construction begins within a year. Foreigners can buy commercial property up to about R200 million in value and are welcome to purchase established property provided that an additional 50% is spent over and above the purchase price on improvements or extensions. They are particularly encouraged to form partnerships with Australian nationals.

"In France, there are no restrictions on foreign ownership but, in what is still a semi-socialist country, there are still some stringent tax laws, e.g. if the property is company owned a 3% tax on its total value is levied annually.

"In the US a similar easy-going system prevails except where there could be a security risk and certain states in the US limit the amount of land a foreigner can buy. Our colleagues at the National Association of Realtors in the US confirmed this.

"In Singapore, which has a drastic property shortage, foreigners can still buy property provided they will live and work there.

"In Chile, there are no restrictions except as regards foreigners buying close to national borders.

"Indonesia allows foreigners who are contributing to the GDP (i.e. not just holidaying) to own property or to enter into renewable 65 year lease agreements."

Seven reasons are given why a country might consider restrictions on foreign ownership. These, he said, include protecting the local lifestyle, preventing foreign economic domination, controlling immigration, conserving local food supplies, enhancing national security, preventing foreign speculation and controlling direct foreign speculation.

"At this stage," says Clarke, "the whole matter therefore boils down to whether we really want to be an investment-friendly country or not. We cannot on the one hand say, "Yes, we welcome your money for this factory, plant or business" and on the other hand say "but SA is for South Africans so you will be subject to draconian residential rulings not dissimilar from those imposed on migrant labour in the hey-day of apartheid"."

Pointing to Ireland, Clarke said that few countries had proved more successful in attracting FDI, but he said this had been accompanied by large-scale foreign property buying.

"People moved their investments and businesses to Ireland because it offered cheaper labour, greater tax concessions and a better, less congested lifestyle – and for five years they had phenomenal growth. Could not the same occur in SA – without destroying the local cultures?"

City launches Property Developers’ Forum

Cape Town city centreThe City of Cape Town has initiated a new Property Developers’ Forum to deal with issues that hamper development in Cape Town and ensure that systems are streamlined and effectively integrated.

More than 120 property professionals attended the August meeting, and raised concerns about the shortage of skilled personnel in the property development sector, and noted an urgent need to streamline building approval and land use processes.

Other concerns included the capacity of the City’s engineering services, the integration of various legal processes, the standardisation of regulations, the payment of development contributions, advertising and notification processes, and liaison with other spheres of government.

Development in Cape Town takes place against an entirely different backdrop compared to other cities, noted Councillor Marian Nieuwoudt (Mayoral Committee member for Planning and Environment) ahead of the launch. “It is the beauty, biodiversity, mountains, oceans and vistas that make Cape Town an international icon. If we cross that sustainability threshold for short-term financial and economic gains, we may compromise the one thing that makes us so sought after.”

Cape Town is rapidly growing into a global city and the pace of development has increased in the wake of South Africa hosting the FIFA World Cup in 2010. The City is therefore committed to guiding this development in a sustainable way, while still enabling people to make a profit and invest in city development, with as little bureaucracy as possible.

The Forum further established six inter-departmental City Task Teams to consider the specific issues raised by property professionals, such as communication of the City’s new district model.

The next Forum event is scheduled for 9 November 2007, which is also linked to World Town Planning Day. Watch your local press, or visit www.capetown.gov.za, for confirmation of the date nearer the time.

R13m for Clifton property

Aug 22 2007 03:19 PM

Property24 reporter

Cape Town - A British buyer has forked out R13m for a 270m² plot on First Beach, Clifton.

The plot houses a small bungalow in knock-down condition.

The property, sold by its up-country South African owner to a British buyer, is to be used for a mix of investment and part-time residential purposes.

The existing structure is to be demolished and rebuilt to its current scale - keeping within the strict council guidelines which govern size and construction materials used on the Clifton beachfront.

Basil Moraitis of Pam Golding Properties says the property is literally the furthest point on the Clifton coastline, enjoying full and uninterrupted views of the entire bay.

Area manager for the Atlantic Seaboard, Laurie Wener, says despite the winter months being traditionally quieter for property sales, especially on the beachfront, the group has seen a steady flow of top-end properties changing hands in the Clifton area.

These have included an apartment at Eventide on the sea side of Victoria Road, which was sold to a local buyer this month (August) for R17m - R1m more than its listed price.

"Despite the very cold and wet winter we have been experiencing, the appeal of property in Clifton has been steady throughout," says Wener.

Clifton has achieved world-class status and is one of the most sought-after stretches of real estate in all of Africa. The limited supply of homes on the market, coupled with the ongoing high demand from buyers, makes it an ideal investment area as well as a stunning residential location."

South African record for Clifton land

A vacant plot in Cape Town's Clifton area has been sold for R11,25-million - believed to be the highest price per square metre ever paid for undeveloped property in South Africa.

The 449 square metre erf realised more than R25 000 per square, Lew Geffen Sotheby's International Realty, Atlantic Seaboard, MD Rob Stefanutto confirmed on Monday.

The stand is situated on Clifton's famous second beach.

"As one of the very last areas of undeveloped land in this most desirable location in the country, the sale generated significant interest from potential buyers both locally and internationally," he said.

While the plot was ultimately bought by an American investor, former South African Formula One world champion Jody Schekter, among others, was believed to have made an offer.

The record price achieved for the stand followed the sale earlier in the year by Lew Geffen Sotheby's of a Clifton apartment for R34-million, believed to be the most expensive of its kind in South Africa, Stefanutto said.

All the properties in the area are wooden bungalows - many of which were originally constructed after World War One as fishermen's cottages or for returning servicemen.

Any new development must conform to the regulations imposed by the Clifton bungalow owners' association. - Sapa

Quickwire

Published on the Web by IOL on 2007-11-12 13:41:41
© Independent Online 2005. All rights reserved. IOL publishes this article in good faith but is not liable for any loss or damage caused by reliance on the information it contains.

House prices rocket to a new high

By Tom Hood

Fewer houses are being sold in the greater Cape Town area but the average price soared to a new record of more than R2,3-million in October, according to estate agents' sales.

A total of 477 houses were sold last month, down 38 percent on the 662 sold in October 2006. But the average price has rocketed by 28 percent from the year-ago figure of R1 808 000.

The price also rose 7 percent from R2 157 000 in September.

These figures are revealed in a statistical analysis of agents' sales by an independent company, Cape Property Services, and published in the latest Residential Property Price Ranger (RPPR).

Absa, the country's largest supplier of home loans, confirmed that prices were still rising but at a slower pace.

Cape Town sales for October were 44 percent below the 688 total for May as the effects of higher interest rates as well as stricter lending by banks since June stopped many families from buying a house.

In the last six months, 3 252 houses were sold in Cape Town for a total of R6,9-billion. Sales of houses, flats and plots were worth a combined R10,5-billion.

House prices increased in seven of 13 areas - mainly upmarket suburbs - and decreased in six others.

Constantiaberg reported the greatest value of house sales - R195m for the month, up from R182m in September and R166m a year ago. The average house price of R3 605 000 was 14 percent more than the R3 152 000 for September and 41 percent above the price of R2 558 000 for October last year.

Big business was also reported from the Southern Suburbs where R182m of sales were achieved, up from R162m in September and R163m a year ago. House prices there averaged R2 726 000, a rise of 4 percent on September's R2 622 000 and 23 percent on the year-ago average of R2 096 000.

Most house sales took place on the West Coast, including Parklands, where an average house cost R1 469 000, up 14 percent from R1 286 000 in September and 39% higher than the R1 054 000 average a year ago.

Ninety-one houses were sold against 86 in September and 109 a year ago.

Despite higher house sales, prices dropped 15% on the Atlantic Seaboard to average R5 960 000 from R6 882 000 in September. A year ago the average house price was R5 425 000, about 10 percent lower than now.

The suburb had a dramatic increase in flat sales, with 139 notching up an average price of R2 438 000, which was 19 percent below September's R2 909 000, when 52 flats were sold.

In the City Bowl, house prices showed a 45 percent drop to average R2 442 000 after September's R3 549 000. But prices were 7 percent up on the R2 276 000 average for September 2006.

Two other seaside suburbs showed higher prices, rising 6 percent in a month to R1 654 000 in False Bay and 44 percent to R4 641 000 in Hout Bay. In a year, prices have risen 15 percent in False Bay and 50 percent in Hout Bay.

The average time to sell a house varied from area to area last month, from 122 days in Hout Bay and 94 in the Boland to 33 in the Parow/Goodwood area and 44 in the Southern Suburbs.

Sales of sectional title property rose 34 percent to 357 from September's 267 - largely because of an upsurge on the Atlantic Seaboard - but were 21 percent below the 453 sold in May.

Cape Town property boom surges ahead of national average



By TOM HOOD

Cape Town's property boom outstripped the rest of the country's sales last year.

House prices rocketed by an average 22% in the Western Cape in 2007, according to a statistical analysis of estate agents' sales.

The number of houses sold dropped by 7% to 6 250 from 6 730 in 2006, but the average price rose to R2 106 000 from R1 728 000.

The Absa house price index shows the average increase for the whole country was 14% last year, with an average house price of about R950 000.

Total value of all residential sales by Cape estate agents last year was R20.3 billion, up 12% from R18.1bn in 2006.

This comprised houses worth R13.1bn (up 13% on 2006's R11.6bn), flats worth R5.2bn (up 13% on 2006's R4.6bn) and vacant land worth R1.98bn (up 4% on 2006's R1.9bn).

This analysis of sales was made by an independent company, Cape Property Services, and published in its Residential Property Price Ranger (RPPR).

Only False Bay and the West Coast suburbs around Table View reported increased sales but all 13 areas in the survey ended the year with sharply higher house prices.

The RPPR reported area increases and average prices for houses as follows:

# Atlantic seaboard, 25% to R5 914 000.

# Bellville-Durbanville, 15% to R1 439 000.

# Boland, 22% to R2 773 000.

# City Bowl, 26% to R2 773 000.

# Constantiaberg, 29% to R3 211 000.

# False Bay, 12% to R1 555 000.

# Hout Bay, 20% to R2 168 000.

# Oostenberg, 19% to R970 000.

# Overberg, 22% to R2 158 000.

# Parow-Goodwood, 20% to R945 000.

# South-east suburbs, 24% to R781 000.

# Southern suburbs, 19% to R2 388 000.

# West Coast, 16% to R1 402 000.

Sectional title sales dropped by 15% to 4 123 from 4 841 in 2006, but the average price rose 33% to R1 260 000 from R948 000.

Prices ranged from R2 734 000 for a flat on the Atlantic seaboard (725 sales) to R423 000 in Parow-Goodwood (117 sales). Most sales (774) took place in the West Coast suburbs, where the average price rose 9% to R831 000 from R761 000.

Sales of housing plots dropped 20% to 1 495 from 1 887 in 2006. However, the average price rose 31% to R1 325 000 from R1 011 000.

The most expensive plots were on the Atlantic seaboard where 13, advertised at an average R9 630 000, fetched R8 958 000, a cut of only 7%. The cheapest plots were in Oostenberg, where 171 fetched an average R484 000.

Most plots, 628, were sold in the Boland, for an average R1 314 000. In 2006, 823 plots there were sold at R946 000, about 40% less.

Property took longer to sell last year as buyers faced higher prices, a series of bond rate hikes and more stringent lending conditions by banks.

Houses were an average 72 days on the market (66 in 2006), flats were on the market an average 68 (52) days, and plots 117 (84) days, the RPPR reported. Last month, estate agents said properties were expected to sell at between 10% and 25% less than the original asking price.

Properties in the R1.2 million to R1.8m bracket typically remained on the market for six months or more, said Jeanie van Jaarsveldt, marketing and finance director of Re/Max.

Cape Town rentals surge

Thu, 17 Apr 2008

High interest rates and the implementation of the National Credit Act (NCA) may have caused a slowdown in residential property sales, but they’ve also created a surge in demand for rentals.

Dexter Leite, Pam Golding Properties’ rentals director for the Western Cape metro region, says the same factors which are creating barriers to purchase are driving would-be buyers to rent instead.

“The NCA has placed tighter restrictions on buyers’ borrowing ability,” says Leite, “while the string of interest rate hikes has also raised the cost of buying one’s home. With further rate hikes now on the cards this has all made it more difficult for entry-level buyers in particular to make their purchase. Many find that their disposable income simply isn’t sufficient to cover or even qualify for the required bond repayments. As a result, these would-be buyers have no choice but to turn to the rental market where the NCA does not apply when assessing ability to pay rent.

Upward pressure on prices

"It is no surprise then that our regional rentals division has experienced a busy end to the financial year, concluding 525 lease transactions in the four months from November to February alone. The increased demand for rental properties is also putting upward pressure on prices which are currently escalating at around eight percent per annum.”

Leite says the demand for rentals is coming not only from first-time home-seekers who cannot afford to buy, but also from students, contract workers and young professionals, both local and foreign. Renting is also popular with those just moving into an area — including the numerous Gautengers who are relocating their families to the Cape — as they try to get a feel for a suburb while searching for a home to buy. There is also ongoing seasonal demand for shorter-term rentals, chiefly from holidaymakers from other parts of South Africa and overseas.

For all these categories of lessees, location is a critical factor, including accessibility to schools and leisure opportunities. Proximity to work has become increasingly important in the wake of rising transport costs and traffic congestion. Security is another key factor influencing the rental decision.

Foreigners and tourists are attracted to the City Bowl

The demand for rental properties varies across Cape Town, with different areas holding appeal for different markets. The Southern Suburbs remain strongly in demand from families due to their proximity to excellent schools and the University of Cape Town. The central City Bowl tends to attract a younger and more cosmopolitan crowd, seeking to live close to work and enjoy the vibrant atmosphere and the lock-up-and-go lifestyle. Foreigners and tourists are also attracted to this area as a result of its proximity to the V&A Waterfront and the Atlantic Seaboard, as well as by its large variety of restaurants, bars, internet cafes and other entertainment facilities. The Atlantic Seaboard itself remains mainly the playground of the jet-set, with top-end rentals regularly achieved for luxury homes and apartments.

Those seeking a seaside lifestyle at lower prices are drawn to the Western Seaboard, increasingly popular with young families and young professionals as well as retirees. Value for money is also a key attraction for the Northern Suburbs, with the Tyger Valley Waterfront emerging as a trendy place to rent, while Brackenfell and surrounding suburbs are also in demand.

PGP’s MD for the Western Cape metro region, Laurie Wener, points out that, like the residential sales market, the rentals division has in recent months seen significant activity in the top-end bracket. “This has been particularly noticeable in the Southern Suburbs, City Bowl and Atlantic Seaboard,” she says. “Agents have been achieving significant results in these areas, including PGP records of R35 000 per month for a home in Oranjezicht, R46 750 per month in Camps Bay, and R50 000 per month in Bishopscourt — all for unfurnished, long-term rentals.”

tell that to my tennats, I feel rents have in fact softened in CT over the past 12 months

Mafikeng's cheap market flourishes
2008/04/18

All over South Africa, property markets are experiencing a glut of stock as people try to sell up following the interest rate hikes and other challenges to affordability.

Buyers are in short supply but mandates can be found by the dozen.

In Mafikeng in the North West province the situation is quite different. "We have so many people wanting to buy homes and there is simply nothing to sell them," says Mandla Sepeng, principal of Realty1 International Property Group's Mafikeng office.

"There is such a demand for stock that we have been trying to create some," says Sepeng.

"We managed to find stands available in the township, and I met with local developers who have now purchased the stands. The developers have obtained residential rights and are now planning to build on them."

The stands were bought for between R20k and R25k and can now be resold at double that price. About 70 stands were purchased and plans are in progress to build houses priced from R210k to around R350k.

"This is the price range that is most in demand. Once we go over R500k, affordability becomes more difficult."

The developers are considering alternative building methods to help keep prices down, such as the gray cement bricks used for RDP housing and the incorporation of steel into the structure. The marketing of the houses is being aimed at teachers, prison warders, police and soldiers.

Taking account of the North West provincial government's announcement last week that it has budgeted R15m over the next three years to help municipalities improve specialised capacity building skills to speed up the delivery of houses, the town of Mafikeng looks set to enjoy a healthy market in the affordable property sector in the near future.

Delivering the budget speech in the Provincial Legislature on Tuesday, Finance MEC Maureen Modiselle, said that an additional amount of R3,1bn had been allocated to accelerate the pace of housing delivery in North West in the medium term, as well as R90m for infrastructure development.

"We really need all this development. Since 1995, much has been done to develop the town, which has tremendous historical significance for the area. The residence of Sol Plaatje is located here, as well as his newspaper office and printing works."

Orascom Construction Industries (OCI), a leading cement producer and construction contractor active in emerging markets, also announced last week that it plans to invest US$440m, or about R3,2bn, in a new cement plant in the North West Province.

The new plant, which will have a production capacity of 2m tons per year, is expected to begin production during 2010. Based in Egypt, OCI has launched a subsidiary, the Mafikeng Cement Company (MCC), which will build and operate the cement plant. OCI will hold 67,5% of MCC.

Fin24's Michael Coulson commented that while the plant won't alleviate current pressures on the cement industry in the short term as it's scheduled to come into production only in 2010, too late for the Fifa World Cup, it is nevertheless a real vote of confidence in SA's economic prospects and the sustainability of the infrastructure spending boom.

Orascom is an Egyptian industrial company

Orascom is an Egyptian industrial company

Yes, its one of Egypt's biggest industrial companies and is amongst the Global 2000 companies in the world as published by forbes. Also owned by the Sawari family who also have significant stakes in Orascom telecoms.

Yes, its one of Egypt's biggest industrial companies and is amongst the Global 2000 companies in the world as published by forbes. Also owned by the Sawari family who also have significant stakes in Orascom telecoms.

Are they also led by Mo Ibrahim of Sudan who has the governance index for Africa?

Apr 21 2008 12:53PM

Joan Muller

Johannesburg - A growing number of SA homeowners are dumping their properties on the market for emigration purposes, according to data released by FNB on Monday.
The FNB Residential Property Barometer for first quarter 2008 shows that 12% of all sellers included in the bank's quarterly survey plan to leave SA, up from 9% in fourth quarter 2007.

Emigration increases are more pronounced in high net worth areas where homes are typically priced above R2.5m. FNB's data shows that 18% of all sellers in this price category plan to emigrate.

In fact, emigration is the biggest single reason cited for selling in upper-end suburbs.

Other key reasons for placing properties on the market in luxury suburbs include upgrading (16%), moving for safety and security reasons (12%), relocating within SA (12%) and downscaling with life stage (12%).

However, if all price categories are taken into account, downscaling due to financial pressure ranks as the most important reason for selling with roughly one in every six (15%) homeowners cashing in for financial reasons.

FNB property strategist John Loos says it appears that a rising emigration rate has become a key contributor to weakening housing demand, particularly in more affluent areas.

Loos notes that Eskom's negative impact on sentiment, heightened nervousness amongst minorities caused by a change in ANC leadership, the slowing global economy negatively affecting a slowing local economy and government's poor handling of the Zimbabwe crisis are possibly factors in themselves that are prompting a new wave of emigration.

Estate agents confirm trend

Estate agents are also reporting an alarming increase in the number of people offloading properties for emigration purposes.

Seeff Properties chairman Samuel Seeff estimates that 25% to 30% of current sellers are planning to leave SA. "Not all of these properties will sell so many people would end up staying in SA. But the general sentiment is not positive. If people were not planning to emigrate, we would never have seen such a surge in sales stock."

Sotheby's International Realty chairperson Lew Geffen echoes a similar sentiment. He says he's seen five recessions in his lifetime, but never before has emigration been so widely cited as the key reason for selling.

Surprisingly, says Geffen, it's not only South Africans in the big-ticket suburbs that plan to go overseas, but also those in middle-income areas.

Industry players say that the increase in emigration could not have come at a worse time for an already depressed residential property market.

While most estate agents have seen a 40% to 50% rise in sales stock since January this year, sales volumes have simultaneously plummeted some 30%.

Prices are also starting to fall in certain areas Standard Bank's latest housing index indicate that median house prices are down 5.2% in March (y-o-y). If the market continues to be flooded with houses for sale, prices will no doubt come under further pressure.

- Fin24.com

This should serve Mr Jacob Zuma quite well. The ANC's core constituents will now be able to buy properties that will be dumped on the market at below market prices. I reackon that the Johannesburg Housing Agency should buy up the properties and dump as many low income people in them as possible. No need to build any new houses as there would be plenty for the ANC to dole out to people in exchange for votes in 2009. Also the ANC does not have to worry about campaigning as the people leaving are people who would vote for the sorry DA so we'll see a lopsided majority in the next parliament maybe even 85% of the seats held by the ANC. Would serve SA right as it will get what it deserves and nothing more just like the rest of Africa got. I guess what we can now fall back on is 300,000 super rich bubbies instead of 6 million middle class volk who will be gone in a flash. Just like what happened in Zaire and Zimbabwe.

RESIDENTIAL

Top reasons South Africans are selling their homes
Realestateweb reporter

21 April 2008

Financial pain, emigration and changing city or town are among the main reasons for putting a home on the market – estate agents.

Emigration talk has fast replaced property investment talk at dinner tables and braais - but it's not the main reason people are putting their homes on the market.

The FNB Property Barometer, which gauges confidence in the residential market based on estate agents' opinions, suggests that financial hardship is the most common reason people are offloading properties.

Downscaling because of financial pressure is the most common reason people in the lower and middle income areas have decided to sell, though upper income and high net worth individuals are also citing this as a reason, according to the barometer.

The top reason the wealthiest property owners are giving for selling in the current market is emigration, however upgrading is also why many have decided to offload their bricks-and-mortar.

Relocating within South Africa is the third most common reason given for a decision to sell among the wealthiest people.

Many people are moving for safety and security reasons as well as a change in family structure, the survey suggests.

Not to be overlooked, meanwhile, is that many people are not desperate sellers. The second most common reason for selling, across the board is in order to "downscale" at their life stage. A change in family structure is also one of the considerations.

John Loos, FNB Home Loans' property strategist, said that unsurprisingly the FNB Residential Property Barometer for the first quarter of 2008 showed further decline in activity levels as estimated by estate agents in the major metro areas.

The level is the worst since the survey was started in 2003.

The deterioration in activity is believed to be the result largely of rising interest rates and soaring inflation eating into real disposable income.

The "general deterioration in sentiment caused by a slowing economy, political change at Polokwana and perhaps Eskom too" are also cited as factors.

The coastal market has recorded lower activity estimates than inland Gauteng, while the lower end of the residential market has now started to creak under the pressure of inflation and interest rates.

Loos warned that although the higher end of the market looked healthier than the lower income end, emigration poses a greater risk to this segment of the market.

The total number of sellers giving emigration as a reason to offload a property is up from 9% in the last quarter of 2007 to 12% in the past quarter. The figure for high net worth individuals is up from 13% in Q42007 to 18% in the first three months of this year. The figure for lower income groups is down to 4% in the past quarter to 6% of sellers in the last quarter of 2007.

The number of sellers with the intention to relocate within South Africa is up, on average, from 9% to 13%.

Other aspects about the residential market that were highlighted by Loos include:

* The proportion of first-time buyers is down, from 17% in the previous quarter to 14%; and

* The average length of time that a house stays on the market is now at roughly 3 months, having risen from 11 weeks and 2 days in the previous quarter.

Mosi when are you emmigrating?

Housing market correction or crash – jittery consumers appear to flood market in property dump panic

April 22, 2008

THERE APPEARS TO BE PANIC on the home front in South Africa. Industry players say the market’s been flooded with housing stock since January, raising concern that this country’s housing slump could be far more painful than had been anticipated. Finweek reports this week that realtors say SA’s housing correction is far deeper and far wider than generally perceived and that the market could even be heading for a crash. The magazine says that SA’s housing market has moved so rapidly over the past two months that statistical information available from banks and economists is outdated – it suggests that real time trends emerging at auctions provide a more reliable picture of the current state of SA’s property market.

In an interview with Rael Levitt of Alliance Group, he maintains that residential property values are already falling. He reckons house prices have dropped between 5% and 15% over the past year, depending on the area. Sotheby’s International Realty chairman Lew Geffen places the drop at between 10% and 15%, with Cape Town’s Atlantic seaboard being the only exception. Says Geffen: “Sellers don’t realise how bad the situation is. Growth isn’t merely slowing – prices are actually falling.”

Other estate agents say it’s too early to determine whether house prices are indeed dropping. However, what everyone does agree on is that this month’s rate hike – the latest of nine consecutive 50 basis point increases since mid-2006 – couldn’t have come at a worse time for an already depressed housing market.

Samuel Seeff, chairman of Seeff Properties, says while there’s been a dramatic increase in houses coming on to the market since the beginning of this year, sales volumes have plummeted. Seeff’s property listings swelled from around 18 000 a year ago to the current 27 000 – a 50% increase in sales stock. At the same time the group’s sales volumes dropped 27% in first quarter 2008 (year-on-year).

Seeff estimates that overall housing sales throughout SA could be down as much as 40%, as the bigger real estate brands tend to benefit in a downturn.

According to Finweek, several factors have come to the fore simultaneously in December last year that dealt market sentiment a massive blow. Those included SA’s uncertain political outlook following the ANC’s Polokwane congress, corruption charges against ANC party president Jacob Zuma and Police Commissioner Jackie Selebi, electricity supply cuts, a weaker rand, wobbly stock markets, yet another interest rate hike early in December and, of course, ongoing crime. Estate agents fear that consumers feel that Government doesn’t have the ability to fix those problems. Some realtors have seen a 40% rise in the number of houses for sale from the beginning of this year.

What’s particularly alarming is the increase in the number of people offloading properties because they’re emigrating- an estimated 25% to 30% of current sellers are planning to leave SA.

Levitt told Finweek that the Alliance group has never seen such a sudden or huge surge in distressed sellers, as has been the case since January this year. The company’s forced sales book was up 50% on an annualised basis in January and rising 30% month-on-month since. Distressed sales include foreclosures (properties repossessed by banks), insolvencies or homeowners selling on their own accord, where they can no longer afford monthly mortgage repayments or plan to emigrate.

Levitt says most distressed sales are happening in the R2m to R5m price bracket. Absa – SA’s biggest mortgage lender, with a home loan book of R204bn – told Finweek it has seen a 35% rise in delinquencies (arrears) over the past year.

In addition, building activity is dropping, with actual residential completions expected to decline noticeably this year as builders face increased supply side shortages, such as municipal bulk infrastructure and electricity cuts.

Economists told Finweek that demand for housing will continue to grow over the longer term, as the inflow into SA’s cities and economic expansion continues, saying that together with the housing backlogs from the past yet to be addressed, it suggests a robust long-term housing demand picture that’s likely to be only temporarily interrupted.

However, the immediate outlook for a recovery in property demand remains bleak. Most property commentators – even self-confessed property bulls such as FNB property strategist John Loos – agree that the market’s likely to remain stagnant for at least the next 12 to 18 months. Loos told Finweek: “The latest interest rate hike raises the risk of national price deflation and will considerably delay the recovery in residential demand. Scenario planning to allow for the possibility of further rate hikes would be advisable.”

Mosi when are you emmigrating?

I'm still in SA but I am considering emigrating to New Zealand and leaving Africa forever.

Realestateweb

Adv Nikki de Havilland

14 April 2008

Top Constitutional expert explains government u-turn on expropriation vs redistribution - and why we need to can new land-grab law.

The right to land tenure and land ownership is inextricably linked to the right to human dignity. As a result, any question of land reform raises intense political emotion. Since security of land tenure is also the cornerstone of a free market open democracy, it also has enormous economic significance. It is thus not surprising that the draft Expropriation Bill recently released has met with such strong reaction.

Property rights in SA & the Constitution

In considering these reactions, it is informative to recall the Constitution's provisions which must guide any such changes. Protection of property was arguably the most contentious issue during the negotiations which preceded the interim Constitution and which informed the final Constitution.

A fine balance had to be achieved between righting the historic wrongs and, by implication, ensuring socio-economic transformation for the majority, whilst simultaneously respecting security of land ownership, so necessary for ensuring economic growth and continued business confidence.

The end product was a prohibition of arbitrary deprivation coupled with an acknowledgment that property could be expropriated for a public purpose or in the public interest, provided that this was done in terms of law of general application and provided that there was just and equitable compensation. It is within this constitutional framework that a land policy which sought to balance the competing political and developmental needs was fashioned.

Land reform: the progress so far

To this end, reform targets were established and the Government embarked on a land reform policy, which, in line with its economic policy, was largely demand-led and market driven. This land reform policy has three pillars:

* Restitution, which attempts to undo land dispossession through restoring land ownership to, or compensating, those forced off land since 19 June, 1913;

* Redistribution, which aims to redress the discriminatory policies by facilitating access to land for previously disadvantaged and poor persons; and

* Land tenure, which seeks to secure tenure for all South Africans, especially the more vulnerable such as farm labourer tenants.

Redistribution was facilitated by way of cash allowances, whilst restitution took place by way of land claims processed by the Land Claims Commission and adjudicated by the Land Claims Court. Consistent with its market driven policy, a cornerstone of the restitution programme was the "willing buyer willing seller" principle and, barring one deadlocked claim where expropriation was used for purposes of restitution, all claims were settled on the basis of agreed compensation.

In marked contrast then to Zimbabwe, Government chose not to use wholesale expropriation without compensation as the main vehicle for land reform. Instead, it adopted a reform programme that served to increase business confidence, both domestically and internationally, which in turn enabled it to meet its economic goals. What then has brought about the apparent change in strategy as reflected in the Expropriation Bill?

Catalysts for change on property rights

An obvious catalyst for this change is undoubtedly the increased pressure on Government to meet its land reform commitment. A less obvious catalyst is Government's changed general land policy from a market based approach to a more radical, interventionist approach, as has been evidenced in a number of recently released policy documents.

The first document was Government's draft AgriBEE framework in 2004 which dramatically increased the targets for redistribution and black economic empowerment. In addition to the 2014 target of transferring 30% of agricultural land to blacks, the framework aims to make farmers lease an additional 20% of high-potential land to blacks and to make available another 10% of farmland to farm workers for their own farming activities.

That black ownership must be increased and as rapidly as possible is unquestionable; equally unquestionable is the need for it to be sustainable if redistribution is to truly improve the socio-economic lot of its beneficiaries. Indications are that these targets are way too ambitious, are not sustainable and will only serve to heighten frustrations.

The second document was the report by a Government-appointed commission into the issue of foreign ownership which was released in November 2007, and which completely negates the government's policy of encouraging foreign investment. The report recommends a two-year bar on land sales to foreigners and an outright ban on foreign ownership in certain areas.

The last and most overt document, released in November 2007, was a draft policy document on the principles which should underpin an amended Expropriation Bill. As the principles do in fact inform the recently released Expropriation amendment Bill, an analysis of this document is helpful in understanding the varied reactions to the Bill.

Although the policy document argues that the purpose of an amendment Bill is, correctly, to bring the existing Expropriation Act into line with the Constitution, the wording of the policy suggests that the real objective is to promote a particular ideological agenda. The preface to the policy document is an emotive analysis of the historic dispossession of land by whites only, with no reference to tribal dispossession, which is expressly intended to set the backdrop for the various proposed policy changes.

The first of these is a move from the existing use of expropriation which is essentially for public purposes such as roads and parks, and instead to use it as the main vehicle for redistribution. The next important change is a move from the existing fair administrative procedure to executive diktat.

The new procedure envisaged commences with the identification of land for redistribution, followed by a notice of expropriation, after which the expropriating authority takes ownership and possession of the property. It is only after transfer of ownership that the question of compensation is considered.

The last important change is a move from the courts as the final determinant of the amount to be compensated which is based on the current market-related value as the primary determinant, to an arbitrary executive determination, which would only be subject to review by a court and not appeal.

The future of SA - if the Expropriation Bill is approved

Why then the enormous public interest in the Bill? The answer lies in understanding what the consequences will be if this land reform policy as encapsulated in the Draft Expropriation Bill is agreed to.

Firstly, by forcing land owners to accept less than market-related prices, the State will effectively have shifted its constitutional burden of bearing the costs of land reform to individual land owners.

Secondly, it will negatively impact on the property market as a whole as no-one would want to invest in property which is subject to arbitrary expropriation with potentially less than market-related compensation.

Thirdly, it would threaten the stability of the agricultural industry as existing farmers would not be able to access funds without the security of their collateral, namely the land, and emerging farmers would only have collateral use to the extent of the stated value of their property, which would be less than its true market value.

Fourthly, it would undermine the co-operation between the agricultural sector and Government which is essential for sustainable land redistribution and agricultural productivity.

Lastly, it would undermine investor confidence, both local and international, with dire economic consequences.

Will land grabs go ahead?

The Center for Constitutional Rights believes that the Draft Expropriation Bill will not pass constitutional muster in its present form.

However, the Centre also believes that the major reasons for the unsatisfactory pace of land reform are systemic problems such as the lack of sufficiently qualified staff in the Regional Offices of the Land Claims Commissioner, and the lack of expertise and continuity in those offices, rather than inherent problems with existing legislation. Unless overcome, these issues will continue to beleaguer land reform, even with the Draft Expropriation Bill.

* Realestateweb's guest columnist Advocate Nikki de Havilland is deputy director of the Centre for Constitutional Rights.

I'm still in SA but I am considering emigrating to New Zealand and leaving Africa forever.

That will be good my brother, I suggest that you make sure you leave ASAP. With more negetive people leaving the country, we will be left with the posetive and build the country together.

That will be good my brother, I suggest that you make sure you leave ASAP. With more negetive people leaving the country, we will be left with the posetive and build the country together.


Pule, if only that was the truth. It is a fact that it's the positive people who are actually leaving the country as they see a bright future - but not in SA. SA is going in directions no one dreamed it would go - a sad testament to lessons gone unlearned and SA can now join hands with the rest of the poverty and moral stricken Africa and endure the struggle of sacrifice in order to receive "redemption". You hope and hope and hope, but in the end you may just find that your hopes disappoint you. This is no time for hope.

I'm still in SA but I am considering emigrating to New Zealand and leaving Africa forever.

good on ya. hope u find the happiness u need over there. eden park is bundles of scaffolding fun!

just glad u made a decision to improve your life. so many people spend most of their time moaning making up excuses for not finding a place that gives them the type of life they require.

Pule, if only that was the truth. It is a fact that it's the positive people who are actually leaving the country as they see a bright future - but not in SA. SA is going in directions no one dreamed it would go - a sad testament to lessons gone unlearned and SA can now join hands with the rest of the poverty and moral stricken Africa and endure the struggle of sacrifice in order to receive "redemption". You hope and hope and hope, but in the end you may just find that your hopes disappoint you. This is no time for hope.

According to your statement African will improve, irrispective for the economic growth that is currently taking place. I thought that its only blind people who can't see but I guess i was wrong, just visit African thread and see what's happening. I guess New Zealand just became a 1st world country overnight without any problems.

Posetive people leaving, I will assume that you were thingking of something else when you were saying that. How come you be posetive and quit? To me it doesn't make sense.

Pule, if only that was the truth. It is a fact that it's the positive people who are actually leaving the country as they see a bright future - but not in SA. SA is going in directions no one dreamed it would go - a sad testament to lessons gone unlearned and SA can now join hands with the rest of the poverty and moral stricken Africa and endure the struggle of sacrifice in order to receive "redemption". You hope and hope and hope, but in the end you may just find that your hopes disappoint you. This is no time for hope.

i personally dont think its going down the tubes. actually the opposite.

our cities are doing fantastically in terms of developing infrastructure that in some cases are 20 years overdue. Durban is one case of cities making dramatic movements forward and not backwards (im sure dysan will agree). Cape Town of course is implementing some plans dating back to 1990, and in Durbans case 1972 regarding its new airport. Johannesburg, bloem and many other cities incl. non 2010 host cities are making positive strides forward.

So I dont see how we are moving backwards? Crime is and will always be an issue and a significant one that is not impossible to reduce, given the correct thinking by government.

From where I'm standing and Im sure from where many forumers stand, the visible change we are experiencing and seeing in our cities from the ground up suggest anything BUT the doom and gloom predictions.

I've seen all areas of Cape Town, rich, poor, safe and dangerous and the change in most areas is positive. School halls being built, public spaces being upgraded, security in areas that never had it, train stations being built near townships, new road links, sports facilities being funded. All necessary functions in a society. These might seem so insignificant to many but the impact it has is at times priceless.

I dont proposed that these solve poverty or reduce crime directly, then again neither does handing out free homes. BUT what I am saying is that everybody speaks from some pedestal - from the top down as if they even see whats happening on ground level and the improvements in living conditions for many.

Choosing to emigrate is a choice and a good and positive choice for many who choose to improve their current quality of life. That doesnt imply that the rest of us who live fulfilling lives will simply disappear and everything will fall to shit.

For many people their lives are actually moving in a positive direction for the first time in years due to improved service and jobs being created due to the massive spending on infrastructure. Don't make statements and expect that they apply to an entire population simply because thats how you feel.

Come to Cape Town and I'll show you the weaknesses and the change, not just around Green Point but across the city, and the we can talk about the direction our country is heading in.

That will be good my brother, I suggest that you make sure you leave ASAP. With more negetive people leaving the country, we will be left with the posetive and build the country together.

Well there you go with a Mugabe statement. It was his ZANU-PF regime that stated that Zimbabwe can do with half the people there and the other half (MDC supporters) leaving Zimbabwe to become refugees in SA. I guess you believe that SA should be ethnically cleansed of all DA supporters so you can have a one party ANC state all to yourself. But like Zimbabwe if all of us were to leave in masse then your country will become exactly like Zimbabwe, which according to the IMF is now ranked as the world's poorest nation with a annual per capita income of $50 per year. Is that what you want for SA, a dictatorship in which everyone sings the tune of the state and doesn't complain in a meaningful way.

good on ya. hope u find the happiness u need over there. eden park is bundles of scaffolding fun!

just glad u made a decision to improve your life. so many people spend most of their time moaning making up excuses for not finding a place that gives them the type of life they require.

Mo, I am still here for now, but I cannot say if I will still be in SA a year from now. I am like any rational person who does not what to be stuck here when it is too late to leave and this place falls apart. If the SA economy goes into a recession, if the housing sector crashes and if inflation reaches 20%, there is no question I will be on the plane out of here to a Western country. And like those who have already left, when I decide it is time to leave I am not coming back, never. I would however come back on holiday however because I still love this country. You can understand where I am coming from and it's not because I'm being poached away by some predatory Western country that has a vendetta against ANC-rule SA. That is not the case and you are correct to point out that the people who are leaving are not evil racist unreconstructed whites who are nostalgic for the old days.

Mo, I am still here for now, but I cannot say if I will still be in SA a year from now. I am like any rational person who does not what to be stuck here when it is too late to leave and this place falls apart. If the SA economy goes into a recession, if the housing sector crashes and if inflation reaches 20%, there is no question I will be on the plane out of here to a Western country. And like those who have already left, when I decide it is time to leave I am not coming back, never. I would however come back on holiday however because I still love this country. You can understand where I am coming from and it's not because I'm being poached away by some predatory Western country that has a vendetta against ANC-rule SA. That is not the case and you are correct to point out that the people who are leaving are not evil racist unreconstructed whites who are nostalgic for the old days.

dont think we heading for recesssion. economic slow down yes! but not a recession. personally, manuel and tito havent been working too hard for the last ten or more years to allow SA to just fall into a recession, YES we are affected by the global slowdown along with capacity constraints and of course political uncertainty but recession? not gonna happen. investment and consumptions growth rates( needs to actually become negative) would need to catastrophically drop to bring on a recession.

while public investment may not be the best indicator, the private sector investment certainly is. as a low case scenario we would hit 2.5% by 2010 thats taking into account extreme political uncertainty, big big big drops in consumer spending and ridiculous changes to investment growth.

inflation ..thats our problemo...hence inflation targeting! we'll do just fine.

Hotel development is booming
2008/05/20

Higher interest rates, electricity supply problems and global credit lending fears have clearly not put a hand break on South Africa's hotel development industry, with a number of multi-million rand projects announced in recent weeks.

Sol Kerzner's long-awaited One & Only luxury hotel project in Cape Town was officially launched this week. The R1bn project being built at the V&A Waterfront is expected to set a new benchmark for SA's top-end hospitality industry. The 130-room hotel, due to open in October 2009, is being punted as "the most spectacular urban resort in Africa".

This is the first hotel that Johannesburg-born Kerzner will open in SA since he completed the Palace of the Lost City in the Pilanesberg for Sun International in 1992.

Kuwaiti-based investment group M.A. Kharafi and the Global Hyatt Corporation also announced a new SA hotel project last week - a 100-room Hyatt Regency due to open at golf resort Oubaai in George early 2010. The resort will be Hyatt's second hotel in South Africa, following the Hyatt Regency Johannesburg, which opened in October 1995.

Meanwhile, local listed property fund Hyprop Investments earlier this month started construction on a new four-star hotel, which will be built above the existing parking garage of Hyde Park Shopping Centre in Johannesburg. The R180m hotel will be developed jointly with Southern Sun.

Stockholm-listed Rezidor Hotel Group announced last month that it would open a second hotel in Sandton in April 2010, a three-star Park Inn. Construction has already started on Rezidor's five-star Radisson near the Gautrain station in Sandton.

That follows international hotel group ISO Leisure's announcement earlier this year that it plans to develop four new Holiday Inn Express hotels in SA over the next two years at a cost of R622m.

Joop Demes, MD of Pam Golding Hospitality, confirms that interest in SA's hotel and tourism industry has surged in the run-up to the 2010 Soccer World Cup. Demes says since January 2007 Golding Hotel Investment Consultants has facilitated new hotel developments valued at around R1,6 bn. Half of these deals are with international operators. In addition, the group has also facilitated the sale of four hotel and game lodge operations worth R625 m to overseas buyers. Demes says Pam Golding is currently conducting six feasibility studies for new hotels, three of which are on behalf of an international operator.

Southern Sun MD Helder Pereira said at a recent media briefing that new hotel investments are more viable than ever, as occupancies have firmed noticeably over the past three years. Pereira says overall hotel occupancies in SA are now at around 73%, up from 68% three years ago.

Figures from the Deloitte Hotel Benchmark study confirm that hotels are spinning better profits these days with SA hotels increasing Revpar (revenue per available room) by 16,3% on average in 2007. - Joan Muller

Hotel development is booming
2008/05/20

Higher interest rates, electricity supply problems and global credit lending fears have clearly not put a hand break on South Africa's hotel development industry, with a number of multi-million rand projects announced in recent weeks.

Sol Kerzner's long-awaited One & Only luxury hotel project in Cape Town was officially launched this week. The R1bn project being built at the V&A Waterfront is expected to set a new benchmark for SA's top-end hospitality industry. The 130-room hotel, due to open in October 2009, is being punted as "the most spectacular urban resort in Africa".

This is the first hotel that Johannesburg-born Kerzner will open in SA since he completed the Palace of the Lost City in the Pilanesberg for Sun International in 1992.

Kuwaiti-based investment group M.A. Kharafi and the Global Hyatt Corporation also announced a new SA hotel project last week - a 100-room Hyatt Regency due to open at golf resort Oubaai in George early 2010. The resort will be Hyatt's second hotel in South Africa, following the Hyatt Regency Johannesburg, which opened in October 1995.

Meanwhile, local listed property fund Hyprop Investments earlier this month started construction on a new four-star hotel, which will be built above the existing parking garage of Hyde Park Shopping Centre in Johannesburg. The R180m hotel will be developed jointly with Southern Sun.

Stockholm-listed Rezidor Hotel Group announced last month that it would open a second hotel in Sandton in April 2010, a three-star Park Inn. Construction has already started on Rezidor's five-star Radisson near the Gautrain station in Sandton.

That follows international hotel group ISO Leisure's announcement earlier this year that it plans to develop four new Holiday Inn Express hotels in SA over the next two years at a cost of R622m.

Joop Demes, MD of Pam Golding Hospitality, confirms that interest in SA's hotel and tourism industry has surged in the run-up to the 2010 Soccer World Cup. Demes says since January 2007 Golding Hotel Investment Consultants has facilitated new hotel developments valued at around R1,6 bn. Half of these deals are with international operators. In addition, the group has also facilitated the sale of four hotel and game lodge operations worth R625 m to overseas buyers. Demes says Pam Golding is currently conducting six feasibility studies for new hotels, three of which are on behalf of an international operator.

Southern Sun MD Helder Pereira said at a recent media briefing that new hotel investments are more viable than ever, as occupancies have firmed noticeably over the past three years. Pereira says overall hotel occupancies in SA are now at around 73%, up from 68% three years ago.

Figures from the Deloitte Hotel Benchmark study confirm that hotels are spinning better profits these days with SA hotels increasing Revpar (revenue per available room) by 16,3% on average in 2007. - Joan Muller


This sort of reporting always drives me up the wall...

Property/Media24 is meant to be a national publication/media but there is not a single mention of any Durban or KZN development here...

And the 'Zulu Kingdom' is arguably the most booming hotel development market in SA at the moment with occupancies in Durban the highest in the country @ around 76%...

Anyway that's the thing with Johanesburg and Cape Town based media & publications - they think everything big happens there and work in cocoons... like how many American's think about Africa...

Also think about eTV an its obvious Cape Town bias...

Anyway, back to the topic (KZN is hot property) ... Noteworthy is that Joop Demes/Pam Golding Hospitality played a advisory role in the R1.3 billion Marriott/Notae Resort development in Ridgeside, Umhlanga... which like Westin Durban will hopefully start work before the end of the year...

ALSO the BIG BIG news on the horizon is the massive $2billion (R16 billion!) "City within a City" resort develoment by a Dubai-based group, which we suspect is Ruwaad Holdings - on the KZN North Coast which will incoporate the big King Shaka statue and about 600 hotel rooms in the first phase...

Anyhow, that's my rant for the day (again) ... lookout for more criticism and analysis...

http://www.cbn.co.za/images/cbn_logo.jpg

30 Jul 2008 : Joubert Plans R6b West Coast Developments


Those who possibly thought that Gert Joubert, developer of the Cape West Coast Britannia Bay and Shelley Point projects, would by now be ready to retire and enjoy the sunshine at these exceptionally pleasant residential estates are way off the mark.

The truth, which became evident in an update given by Joubert recently, is that he sees the highly successful Shelley Point (where over 1 000 plots have been sold and a R1,5 billion worth of infrastructure including the clubhouse, hotel and 45 apartments have been created to date) as simply the launching pad for three further comprehensive projects, all of which will be on the St Helena Bay coast and within ten kilometres of each other.

“We see this area rivalling such traditional East Coast resorts as Plettenberg Bay and Hermanus,” said Joubert. “The main reasons for this are, firstly, that it is still possible here to build coast-related waterfront projects of the kind no longer possible on the East Coast and, secondly, we are only one and a half hours from Cape Town, on a road that is seldom, if ever, traffic congested.”

Joubert has initiated three new projects which together will have a sell-out value in the region of R6 billion – and could take ten to twelve years to reach completion.

First on the list are the final two phases at the 160ha Shelley Point estate. These will deliver 900 luxury apartments encircling a small bay, in which Joubert plans to build a small boat harbour and to create two islands, for each of which his team has designed 45 luxury dwellings designed (and priced) specifically for the international market. The 900 apartments already have planning approval and the approval for the remaining work could come through this year.

Joubert has stressed that his harbour designers do not want another Royal Cape Yacht Club or Club Mykonos with “taxi ranks” of boats moored side by side. When not in use the vast majority of boats will be towed up a hi-tech slipway and garaged in premises specifically designed fro this purpose. The facility will, therefore, be as ideal for the mobile ski-boat fraternity (who tend to go where the fish are running) as for long-distance yacht sailors.

“In particular,” said Joubert, “we do not want metres of concrete wharfs. The beaches will be kept and will remain open to all at Shelley Point.”

All buildings in this precinct, he adds, will be low-rise. “High-rise is not acceptable to us on any of our projects.”

Joubert’s second project on which considerable planning and sales progress has already been made, is the Sandy Point Marina, an inland marina that will be fed by an excavated channel from the St Helena Bay harbour. The marina has, as yet, not been launched but almost all 295 single residential plots inland (with an average size of 600m2) have been sold. Approval on the marina itself will probably come through before 2009, says Joubert, but he does not expect work to start until 2010.

Joubert’s third project is St Helena Views Waterfront. This is sited on the old Stefaan Estate (the Stefaans, who pioneered the West Coast opening up a two way trade with Cape Town, were in the first two-thirds of the 19th Century the richest family in SA). Old buildings on the estate, including the St Helena Bay Hotel, so popular in the fifties with Platteland folk, will be restored and arts and crafts people will be encouraged to settle and work in a communal area, which will have restaurants and B&Bs. 1 400 Erven are being developed here. Launched in March 2000, these plots are also now 95% sold out.

Joubert, who has recently returned from a property expo at Bahrain, in the Middle East, and who is now sending his sales team to explain his plans to UAE developers, said that he plans to put all three projects into one big package which would be large and bold enough to attract one of the Middle East’s mega-developers.

“We have everything going for us,” he said. “Middle Eastern developers have done wonders in creating resorts but these are almost 100% man-made – they are on barren coasts in barren deserts. By contrast, we can offer a huge range of animal, bird and plant life, a rich biodiversity and a climate that makes this place a paradise in comparison with many Middle East resorts where, moreover, the accommodation is often in high rise blocks cut off from their environment. Add to this the fact that our prices per square metre are half what they are paying and you will understand why I am totally confident that we can find developers to come in here.”

But, he adds, he does not foresee a start being made until 2010 – or thereabouts – by when all plan approvals will be in place and by when he expects the world economy to be on a recovery path from which SA will benefit.

http://www.cbn.co.za/images/cbn_logo.jpg

30 Jul 2008 : Joubert Plans R6b West Coast Developments


Those who possibly thought that Gert Joubert, developer of the Cape West Coast Britannia Bay and Shelley Point projects, would by now be ready to retire and enjoy the sunshine at these exceptionally pleasant residential estates are way off the mark.

The truth, which became evident in an update given by Joubert recently, is that he sees the highly successful Shelley Point (where over 1 000 plots have been sold and a R1,5 billion worth of infrastructure including the clubhouse, hotel and 45 apartments have been created to date) as simply the launching pad for three further comprehensive projects, all of which will be on the St Helena Bay coast and within ten kilometres of each other.

“We see this area rivalling such traditional East Coast resorts as Plettenberg Bay and Hermanus,” said Joubert. “The main reasons for this are, firstly, that it is still possible here to build coast-related waterfront projects of the kind no longer possible on the East Coast and, secondly, we are only one and a half hours from Cape Town, on a road that is seldom, if ever, traffic congested.”

Joubert has initiated three new projects which together will have a sell-out value in the region of R6 billion – and could take ten to twelve years to reach completion.

First on the list are the final two phases at the 160ha Shelley Point estate. These will deliver 900 luxury apartments encircling a small bay, in which Joubert plans to build a small boat harbour and to create two islands, for each of which his team has designed 45 luxury dwellings designed (and priced) specifically for the international market. The 900 apartments already have planning approval and the approval for the remaining work could come through this year.

Joubert has stressed that his harbour designers do not want another Royal Cape Yacht Club or Club Mykonos with “taxi ranks” of boats moored side by side. When not in use the vast majority of boats will be towed up a hi-tech slipway and garaged in premises specifically designed fro this purpose. The facility will, therefore, be as ideal for the mobile ski-boat fraternity (who tend to go where the fish are running) as for long-distance yacht sailors.

“In particular,” said Joubert, “we do not want metres of concrete wharfs. The beaches will be kept and will remain open to all at Shelley Point.”

All buildings in this precinct, he adds, will be low-rise. “High-rise is not acceptable to us on any of our projects.”

Joubert’s second project on which considerable planning and sales progress has already been made, is the Sandy Point Marina, an inland marina that will be fed by an excavated channel from the St Helena Bay harbour. The marina has, as yet, not been launched but almost all 295 single residential plots inland (with an average size of 600m2) have been sold. Approval on the marina itself will probably come through before 2009, says Joubert, but he does not expect work to start until 2010.

Joubert’s third project is St Helena Views Waterfront. This is sited on the old Stefaan Estate (the Stefaans, who pioneered the West Coast opening up a two way trade with Cape Town, were in the first two-thirds of the 19th Century the richest family in SA). Old buildings on the estate, including the St Helena Bay Hotel, so popular in the fifties with Platteland folk, will be restored and arts and crafts people will be encouraged to settle and work in a communal area, which will have restaurants and B&Bs. 1 400 Erven are being developed here. Launched in March 2000, these plots are also now 95% sold out.

Joubert, who has recently returned from a property expo at Bahrain, in the Middle East, and who is now sending his sales team to explain his plans to UAE developers, said that he plans to put all three projects into one big package which would be large and bold enough to attract one of the Middle East’s mega-developers.

“We have everything going for us,” he said. “Middle Eastern developers have done wonders in creating resorts but these are almost 100% man-made – they are on barren coasts in barren deserts. By contrast, we can offer a huge range of animal, bird and plant life, a rich biodiversity and a climate that makes this place a paradise in comparison with many Middle East resorts where, moreover, the accommodation is often in high rise blocks cut off from their environment. Add to this the fact that our prices per square metre are half what they are paying and you will understand why I am totally confident that we can find developers to come in here.”

But, he adds, he does not foresee a start being made until 2010 – or thereabouts – by when all plan approvals will be in place and by when he expects the world economy to be on a recovery path from which SA will benefit.
I love that you add the logo at the top. I think I'm gonna start doing that.

The Hottest Property development in SA and African!!!!

Cross post from the # $5 Billion AmaZulu World Thread
Mike, can you please change the title of this thread to "Amazulu World".

^^Can I? If so How? (Since I originally posted it...)

Anyway here's the Dubai Press Release... (more info than the story)

Ruwaad announces 'Amazulu World' project in South Africa
Ruwaad, a UAE-based real estate, hospitality and tourism investment and development company, announced today during Cityscape 2008, plans to develop 'Amazulu World', a multi-billion dollar themed entertainment and mixed-use destination development on the north coast of Durban in South Africa.
The project will be a master-planned, uniquely African destination development covering approximately 16,500 hectares of land, and will be the biggest and most comprehensive development of its kind anywhere in the African continent. As a vibrant, harmonious and integrated leisure, living and working environment which is designed to be eco-friendly, minimise the impact on the area's natural surroundings and embrace the area's rich cultural and historical heritage, Amazulu World will incorporate many distinctive features to appeal to national, regional, and international visitors.

'Amazulu World, with a size of almost 16 500 hectares is the single largest development to be initiated in African history. We are very proud to be leading this hugely exciting development and to be bringing to investors, residents and tourists in Africa a world-class destination experience, in collaboration with our international partners,' commented Hanif Merchant, Chairman of Ruwaad.

Hayan Merchant, Group Chief Executive Officer of Ruwaad stated;
'Amazulu World will have a perfect blend of development zones. Among the key elements are Africa's first world-class internationally branded entertainment theme park, as well as Africa's largest shopping destination, Africa's most comprehensive and advanced sports village development, Africa's largest lifestyle community and Africa's first dedicated education and health village; alongside a number of hotels, resorts and spas, a marina, a variety of residential offerings, community facilities, and nature reserves.'


Hayan Merchant explained how South Africa was the natural choice for the destination, especially in terms of the ongoing infrastructural development and predicted economic growth in the country, and described how the development will bring a significant economic uplift to the region. 'South Africa does not only offer an excellent year-round climate and some of the world's most outstanding natural beauty, but recent developments in the country have been pushing it to become one of the strongest emerging markets in the world. The 2010 Soccer World Cup, heavy investment in infrastructure including upgrading railways and expanding ports, and the recent surge of significant foreign investments in telecommunications and tourism projects, will support this development in becoming the Destination Choice of Africa, and into one of the leading destinations in the world,' said Merchant.

The proposed development is directly north of the Thukela River and is located east and west of the N2 national road, a regional path of growth that connects the city of Durban with Richards Bay and the rest of the northern KwaZulu-Natal province. Furthermore, the project will be situated close to the $1bn new King Shaka International Airport.

A development on the scale planned by Ruwaad is expected to have a significant, positive impact on the South African economy. Initial studies indicate that Amazulu World will create more than 200,000 new jobs, and will increase tourism to the region by almost 40% through attracting millions of tourists. Through which, Ruwaad are hoping to provide a large number of opportunities and a sustainable future for the community living close to the project and in the KwaZulu-Natal province in general.

His Majesty King Goodwill Zwelithini kaBhekuzulu, the King of KwaZulu-Natal commented; 'Ruwaad has demonstrated to our community its firm commitment to developing a destination that fits inline with our area's unique natural, cultural and historical character. With confidence, the local community is hugely excited to welcome Ruwaad to our province, and we look forward to the future employment, and economic growth that will contribute to the sustainability of our area; for the inhabitants of today and those for generations to come.'

The Premier of KwaZulu-Natal, South Africa, The Honourable Sibusiso Ndebelecommented that he is confident the Amazulu World destination will pave the way forward for even more foreign investment to come into South Africa and that the destination would 'make South Africa a sustainable destination of choice and an economic hub that will boost trade, tourism and development for the entire African continent.'

Ruwaad are moving swiftly to complete the social and community participation procedures for the project, in order to obtain the approvals required from the South African government, necessary to begin the project's construction. The project is scheduled to be built in multiple phases over a period of 25 years.

Ruwaad is a wholly-owned subsidiary of the Dubai 9 Group, a UAE-based investment company with almost 40 years of experience; with investments across more than 10 industry sectors across four continents.

Ruwaad has significant international experience in investing in and developing key projects in various parts of the world as its holding company, Dubai 9 Group is one of the three founding members of Enshaa Holdings. Enshaa, through Emirates Sunland, is developing and managing the Palazzo Versace Resort on Australia's Gold Coast; the Palazzo Versace Resort in Dubai; the 80-storey D1 Tower, the White Bay master-planned community in Umm Al Quwain, the Emirates Financial Towers in the Dubai International Financial Centre; and the Karachi Financial Towers in Pakistan, amongst other projects.

The project will draw on the Ruwaad team's wide range of development expertise and experience, as gleaned from a number of highly successful projects around the globe including Disneyworld - Orlando, USA; Universal Studios - Osaka, Japan; Sentosa Island - Singapore and Yas Island - Abu Dhabi, UAE.

Apart from destination developments, real estate development, hotels and resorts, the Dubai 9 Group's areas of investment include signage and visual communications, media and advertising, executive education, human capital consulting, consumer electronics, aluminium and steel fabrication and industrial coatings. Ruwaad's role is to diversify and globalize the Dubai 9 Group's business portfolio in the real estate, hospitality and tourism sectors with its initial focus on the Middle East, Africa and Asia.

Source: http://www.ameinfo.com/170490.html

Cape Town Shines as an Investment Paradise

SUBSTANTIAL capital injection and sound public sector directives on rejuvenating Cape Town has transformed the city into a haven for private residential investment returns with the effects filtering across the broader region, a new report has revealed.

The Trafalgar City Report 2008, now in its seventh edition, has confirmed that Maitland is among the country’s leading residential areas with average property prices escalating 417% in the past two years. In the Cape Town city centre, prices have grown 37% annually amid a strong demand for three bedroom properties and a decline in bachelor and one and two-bedroom homes.

This reflects the rising average household incomes, growing families and changing space requirements among Cape Town’s city dwellers.

Franschhoek has benefited from a 50% increase in average prices and more than three-quarters of the properties available on the market were transferred to new owners within the prior two-year period.

Nationally, data collated from deed office information indicates that highly sought-after areas have experienced dramatic property price hikes despite climbing interest rates. Elsewhere, the interest rate has claimed victims via lower sales prices or a marked decrease in sales activity and transfers.

Some areas show a sales growth in three-bedroom houses and a corresponding drop in smaller home purchases, whereas other areas show an increase in smaller home purchases as entry-level homeowners seek cheaper options in bachelor flats and one-bedroom homes.

The flipside were decreases in the average prices achieved in Woodstock (25% lower), Mowbray (20%), University Estate (18%) and further afield in Hermanus (13%). Although University Estate sustained more sales in 2007 than the previous year, the report commented that the lower average price reflected the growing demand for cheaper one and two-bedroom units.

Stellenbosch also experienced a drop in sales activities across the board.

According to the report, the Cape Town Partnership – an independent public private sector body established to develop, manage and promote the Cape Town central city – has put into place quality urban management systems and guidelines based on the specific local characteristics for areas within the central city. This has prompted investments totalling R18 billion and the upgrading of more than 170 buildings with another R28-30 billion earmarked for the next three to five years.

“Virtually all projects are progressing well and there is overall optimism in the Cape Town city centre, which remains the major economic node in the Cape Town metropolitan area, both in terms of gross geographic product and jobs,” the report says.

Considering broader issues, the report highlighted the attempts by national government to improve housing delivery as well as the role the private sector should be playing in meeting social housing demands.

Nationally 186,000 houses had either been completed or were under construction by the third quarter of the 2007/2008 financial year with 23,438 of these situated within the Western Cape. An Affordable Housing Conference held last year noted South African metropolitan areas demand 55,000 new houses annually against the current 6,700 being built.

In the foreword, Trafalgar managing director Andrew Schaefer says social housing – the provision of rental housing for lower-income earners caught between government-subsidised homes and having the capital to purchase their own accommodation – has not typically been viewed as a private sector realm.

Yet, particularly among developed nations, the private sector has been expected to contribute towards boosting the social housing stock. Black households dominate the South African rental market, followed by the coloured population and annually 105,670 new units are demanded.

The report indicates that mixed income developments such as N2 Gateway and the R30 million Aliwal Gardens Development in Ruyterwacht – the province’s first wholly integrated housing development now accommodating people across the racial and socio-economic spectrum – are making progress on addressing the backlog.

Essentially, South Africa has the systems, legislation and policies in place to deliver on its housing requirements. The way forward demands large-scale implementation; unrelenting follow-through on non delivery; consistent engagement with stakeholders and communities and the strict enforcement of existing legislation,” Schaefer says.

HOT Property New - Bukhatir Group eyes KZN

here's a cross post from the Durban and AmaZulu World Thread... seems the tribe are talking to the Bukhatir Group! Dubai Sports City here we come...

GUYS,
BREAKING NEWS

Another major Dubai investor is eyeing KZN - I just heard this through the Tourism trade.... they have a deal with the Macabini tribe...

look out in the news 2moro...

I've just got that tipoff - no more info...

The Big Big Bukhatir Group....

^^ More Hot Property info
cross post from the Durban Thread...

Hope politics don't mess things up!


>>>>
very interesting to hear...just popped to their website and see they involved with Dubai sports city...want to hear some more...

Yeh they are... and their plan is to develop a 'Sports City' here on the KZN North Coast... Macambini Sports City accoding to this mornings mercury...

Rival billion-rand project for N Coast
October 23 2008 at 08:33AM

Related Articles
Dubai firm plans Amazulu World in SA

By Nathi Olifant
The community of Macambini, near Mandeni, is set to clash with the KwaZulu-Natal government after announcing a second multibillion-rand development project for the area.

Premier S'bu Ndebele, KZN Director-General Kwazi Mbanjwa and King Goodwill Zwelithini recently travelled to Dubai to unveil a R44-billion project to be built on 16 500ha.

The project would include Africa's first internationally branded entertainment theme park, a shopping centre, a sports village and a dedicated education and health village. This would be alongside hotels, resorts, spas, a marina, residential offerings, community facilities and nature reserves.

The KZN government signed a memorandum of understanding with the developers, the Ruwaad consortium, while in Dubai.

However, the Macambini community, led by Inkosi Khayelihle Mathaba, were opposed to the project, saying they had not been consulted and feared they would have to move. The community had previously been moved to make way for a highway to be built.
On Wednesday, the Macambini traditional council announced that 500ha of its land along the Indian Ocean had been reserved for another massive development led by another Dubai-based company, the Bukhatir Group.

The $5-billion development would be known as the Macambini Sports City, a world-class sports city to be built by the Bukhatir Group's property arm Sport Cities International. Bukhatir is one of the largest companies in the United Arab Emirates.

The Macambini Sports City would feature high-rise residential and commercial towers, a shopping mall, a five-star hotel, a signature golf course, a multi-purpose stadium and other social amenities. Construction was expected to start in 18 months.

The impact from investment in property, employment, entertainment and tourism is expected to result in an improvement in the lives of the Macambini community.

The development would be a direct investment aimed at stimulating economic growth and ensuring the strengthening of KZN's infrastructure, said Bukhatir.

An estimated 20 000 direct and indirect jobs would be created during the construction and operational phase.

"We aim to improve the quality of life for the people of Macambini through our sports academies and grass-roots programmes. We set out to identify and recruit talent from local communities and nurture their growth through sports training with the objective of cultivating the next generation of national heroes," said Sport Cities International chief executive Zahid Noorani.

Mathaba, a member of the provincial legislature, said he welcomed developments that respected the rights of his people and would not forcefully remove them from their land.

He would not be dictated to on who he should enter into partnership with regarding his area. He made it clear that he and his community did not want the Ruwaad development and said neither Ndebele nor the king would dictate what he did in Macambini.

He would meet his 30-member traditional council which would send a letter to the Ingonyama Trust Board outlining its decision to grant the development to the Bukhatir Group.

It would also engage the finance and economic development portfolio committee.

An unruly Macambini crowd took to the roads last week, burning tyres and disrupting traffic near the Mandini toll plaza while protesting against the Ruwaad development.

Mbanjwa said in a statement that all would-be investors would have to go through the normal process of having their projects considered for incorporation into the integrated development plans of the Mandeni Local Municipality and the Ilembe District Municipality.

"This is the only legal route to go once any proposal has been firmed. We are satisfied that the north coast of KZN is entering exciting times...With regards to the proposed development (Ruwaad) on the north coast, we remain fully committed to proper and thorough consultation with all stakeholders that will be subject to the normal legal processes in a fully transparent manner. We will only do what is in the best interests of the people of Macambini, the people of KZN and the people of South Africa," he said.

This article was originally published on page 4 of The Mercury on October 23, 2008

SOURCE: http://www.iol.co.za/index.php?set_id=1&click_id=124&art_id=vn20081023053835190C164028

^^^^^Guys I think there's more to this than we think...

AmaZulu World - 16 500ha - $5billion plan
Macambini Sports City - only 500ha - but also $5 billion

could be politics and rivalry from the two Dubai players too... Bukhatri has a serious property track record while Ruwaad is a relatively new player - or late entrant into the property scene but with big plans... now Bukhatri is taking notice at potential competition not just in Dubai but worldwide...

the last thing we need is politics and rivalry stalling much-needed projects (ie. Durban Film City)

more on Macambini Sports City... & AmaZulu World conflict
SA Boy what are your thoughts on these developments... - you are right in the action in Dubai - you surely can get info or will hear about what's happening...

Premier licked in R44bn deal
23 October 2008
Mhlaba Memela

Sabotaged: Sbu Ndebele
Chief triumphs

The recently announced R44 billion project initiated by KwaZulu-Natal Premier Sbu Ndebele has been sabotaged.

Chief Khayelihle Mathaba has signed a memorandum of understanding with Dubai-based Sport Cities International (SCI) – a member of the Bukhatir Group – indicating an acceptance of the new project and not the one spearheaded by Ndebele.

At a media briefing, Mathaba and SCI indicated their project would be launched in 18 months. Mathaba said he signed with SCI after both parties agreed that people would not be removed from ancestral land.

Yesterday the international real estate giant SCI agreed to invest over R55 billion in the Macambini Sports City development spanning 500 hectares on the north coast of KwaZulu-Natal and were given the go-ahead by the community and its local traditional leaders.

The Ndebele project called Amazulu World was launched at a glittering event in Dubai earlier this month. At the time, it was made clear by locals that the project had the blessing of Zulu King Goodwill Zwelethini but not that of its local leaders.

The rejection of the premier’s initiative was evident because Mathaba refused to be part of a delegation with Ndebele and King Zwelithini when they went to Dubai to finalise the investment earlier this month.

Ndebele was accused of failing to consult the community over the development.

Mathaba said he was asked by his people to meet the investor over the project.

Macambini Sports City development is expected to stimulate economic growth and strengthen infrastructure and create 20000 jobs.

Ndebele was in a cabinet meeting yesterday and is expected to comment later.

“We believe we can make a huge difference in people’s lives. It’s not about money but about benefiting the people,” said Ilya Baig of SCI.

Source: http://www.sowetan.co.za/News/Article.aspx?id=868746

Cape Town's property "boom belt"
Denise Mhlanga
01 December 2008

Cash buyers, domestic workers' employers help fuel demand for under R600 000 properties.

Demand for properties under the R600 000 in the Western Cape areas such as Mitchells Plain, Khayelitsha, Grassy Park and Strandfontein in Cape Town has been constant in the past six months, said Rob Lawrence, business development manager of Rawson Properties.

Lawrence told Realestateweb.co.za that there is a lack of stock priced right to meet supply in the under R600 000 price range.

He said given the slowdown in the property market, properties in Mitchells Plain, Khayelitsha, Grassy Park and Strandfontein under R600 000 have held up far better than elsewhere.

Property prices in these areas have not dropped as much compared to other areas, he said. The difference in asking and selling prices is between 15% and 18% in Mitchells Plain, Khayelitsha, Grassy Park and Strandfontein compared to as much as 30% in other areas.

He said properties that are priced right are easily snapped up.

"Buyers are mostly in the under 35 age group and these areas are houses that cater for low- to middle- income earners," said Lawrence.

He said properties prices vary according to location of the house within areas and can go up to R1m in Mitchells Plain.

He said that the problem for many buyers is that their bond applications are turned down, not necessarily because of the National Credit Act (NCA) but poor debt payment records.

Banks are especially vigilant about debt payment conduct as they have to carry the whole debt if it can be shown that they lent recklessly according to the NCA, he said.

Looking forward, Lawrence said a 1% drop in the interest rate could make another 5% of the total population eligible for bond approvals.

"The second half of 2009 (when interest rates are expected to drop) should be a good time for buyers below R600 000 and increase demand further in the low cost areas," said Lawrence.

Astrid Smith, principal at RealNet Select, in Cape Town said the market has slowed down with property prices having dropped to under R500 000 in some parts of Strandfontein.

In Mitchells Plain, the market is still fairly good although not as active as it was a year ago, she said.

Prices vary in different parts of Mitchells Plain with some property bargains at as little as R150 000.

A two bedroom house in Strandfontein now costs R350 000 compared to between R400 000 and R420 000 last year.

"I am optimistic that the property market will soon turn," said Smith.

Meanwhile buyers in the low income areas of Khayelitsha are still actively buying properties in the price range of R120 000 to R300 000 and some even pay cash.

According to estate agent Nani Tshandu of Pam Golding Properties in Khayelitsha, this buyer segment is still active even in this slow market compared to the middle income areas

Tshandu said it has become difficult for buyers in this part of the area as banks generally require a 10% deposit for home loans money which many buyers just do not have.

However, she said a few buyers can still afford to raise a deposit especially when buying properties of less than R300 000.

An interesting trend in the low-cost areas within Khayelitsha including Mandela Park is that most buyers are domestic workers who are getting help to buy properties either from their working children or employers.

She said one of her clients was recently approved for a bond of less R50 000 on a property less than R300 000 and they were able to raise the remaining amount in order to buy that property.

"I educate my clients on the new home loan application requirements and advise them to save for the 10% deposit as this works in their favour," said Tshandu.

She said in Litha Park, regarded as an upmarket area in Khayelitsha, a two-bedroom house costs between R250 000 to R295 000 while a three-bedroom costs between R320 000 and R385 000.

In Mandela Park where there is low-cost housing as well, a two-bedroom unit costs between R150 000 to R220 000 and a three-bedroom between R220 000 - R285 000.

She agreed that a lot of buyers are paying cash for properties under R300 000.

Finally, Zimbali Lakes Resort launched!!!

New R7 billion Zimbali development launched

North Coast - A new R7 billion North Coast development called Zimbali Lakes Resort, which is the next major phase in the existing landmark Zimbali development, has been launched by international property development heavyweights IFA Hotels & Resorts and its joint venture partners, Tongaat-Hulett Developments.

Located near Ballito and adjoining the R10 billion Zimbali Coastal Resort, Zimbali Lakes Resort has been touted as “the most significant development to take place within Zimbali since its launch in 1996″.

Andreas Wassenaar, the vice-president of sales and marketing for IFA Hotels & Resorts, said the Zimbali Lakes Resort was also the biggest investment into the area since the launch of the R1.8 billion Fairmont Zimbali Hotel precinct last year.

“The development is set to create more than 12 500 jobs and will further elevate the global reputation of Zimbali.

“It is the culmination of four years of planning and represents the second major piece of the puzzle in the greater Zimbali development,” he said.

The latest addition planned for Zimbali is set on 300ha of undulating hills and will include more than 1 000 residences, two hotels, an office estate, beach club, and a mixed-use retail and leisure node overlooking an inland lake.

A key anchor feature within the development will be the championship golf course, clubhouse and driving range designed by South African golfing veteran Gary Player.
“We have received all the relevant approvals, and construction will start in the latter part of next year,” said Ken Forbes, the resorts development director of Tongaat-Hulett Developments.

“This addition to the greater Zimbali development is set to extend the development lifespan of Zimbali for a further 15 years, introducing a new era to the already internationally renowned resort . . . It is expected to result in about R7 billion injected into the regional economy and contribute R30 million to the rates base of the local municipality,” he said.

“People may think we are mad launching this development . . . in these turbulent financial times, but we are very confident because there has been a lot of interest being shown in Zimbali - especially with the upcoming 2010 Fifa World Cup and the development of KZN’s new R8 billion international airport.”

Wassenaar said Zimbali Lakes Resort had been conceived as an exclusive family-orientated residential and leisure development.

“An exciting feature of the resort is the waterfront recreational node, which is to be created along one section of the extensive 30ha inland lake, transforming the area and reinforcing Zimbali’s reputation as one of South Africa’s most desirable residential and recreational destinations,” said Wassenaar.

“This entertainment node will add a unique dimension to the greater Zimbali development in that convenience shopping and retail, restaurants, entertainment facilities, offices, hotels and lock-up-and-go apartment style living will be created,” he said.

SOURCE: http://www.travelwires.com/wp/?p=3269

South Africa: R1.3 Billion Housing Project to Accommodate All Races

December 12, 2008 - 01:00 — AA Network

Emalahleni - An agreement has been signed to build a R1.3 billion integrated housing settlement in Emalahleni (formerly Witbank).

Representatives of the Emalahleni Local Municipality, ABSA and the Mpumalanga Department of Housing have signed an agreement to build the Klarinet housing project on 280-hectares of land, starting in January.

"Funding for the project is derived from subsidies from the provincial department, while top up funds will come from ABSA and Emalahleni," said ABSA spokesperson Ajith Bridgraj.

The development will be built over six years.

A total of 6 247 subsidised housing units, 2 322 apartments, 3 900 bonded housing units and a range of social facilities and amenities including schools, clinics, community centres and a cemetery will be built. The area will also have its own shopping mall.

Klarinet will be developed by ABSA Property Development, or Absa Devco, and is part of the national housing department's Breaking New Ground initiative.

All the parties involved in the project wanted to create a quality work-live-play environment to promote the development of sustainable, non-racial societies.

Acting Mayor of Emalahleni, Zingisa Mbuku, said the project would help the municipality in its attempts to eradicate all informal settlements by 2014.

"It is encouraging to note that the project is truly integrated in that it caters for a range of housing typologies, giving consumers a choice between rental and full ownership accommodation," he said.

He said apart from offering people the privilege of owning their own home in a friendly, safe and pleasing environment, the Klarinet project also contributed towards job creation.

Managing Director of Absa Devco, Sipho Mashinini agrees: "This project gives ABSA the opportunity to partner with government in the areas of housing delivery, job creation and poverty alleviation. It is our way of giving back to the communities that support us."

ABSA is not new to working with government on housing developments. The bank is involved in a pilot project, the Olievenhoutbosch ministerial housing project in Pretoria. - BuaNews

Contrary to the doom and gloom tribe. Green Point is doing very well.

Cape commercial property sizzles
Company announcement
19 January 2009

Infrastructure built around Green Point is a major commercial attraction for commercial property investors.

Commercial property continues to arouse investor interest in Cape Town's Green Point said Selwyn Sharon, leasing, sales and investment consultant for Pam Golding Commercial.

Sharon said they have just sold two adjacent sectional title commercial units at Victoria Junction building, thanks to the ongoing revival at Somerset Road.

The two A grade ground floor units comprise 300m2 each and were each sold for a value of R3,762m - both purchased by owner-occupiers. One of the units was purchased by Traffic, an integrated marketing company, while the other unit, which has prime street frontage onto busy Ebenezer Road - making it ideal for retail use, was purchased by the Johannesburg-based The Silk & Cotton Company, for a new office and showroom in Cape Town. The units were previously owned by Khoisan Tea Import Export (Pty) Ltd.

Somerset Road area, which adjoins the popular De Waterkant precinct, is very well positioned with access to arterial routes and freeways. The extension of the Cape Quarter and completion of the nearby prestigious 'The Hudson' building and the potential new developments in the Chiappini Street precinct underline the significant investment being injected into this sought after area, said Sharon.

In a new extension of The Hudson building, Sharon recently concluded two leases to successful local company directors and business executives which comprise 300m2 and 200m2 respectively, each let at R145/m2.

Sharon has concluded leases in this building valued at approximately R30m.

Conveniently situated on the corner of Hudson and Strand Streets, this appealing and upmarket complex has attracted tenants of high calibre and across a broad cross-section, including CNBC's Cape Town studio.

CT office for Dubai agency
24 January 2009 Cape Argus

Despite gloomy forecasts for global property, Better Homes - the largest real estate agency in the United Arab Emirates (UAE) - has expanded its business and opened up an office in Cape Town.

shit thats one for the books, Bh is the biggest and somewhat best agency in Dubai

Zimbali honoured as “World’s Best” at CNBC Property Awards

(Awards) BALLITO (January 28) - Zimbali Coastal Resort has been awarded the highest possible accolade in the international property arena, according to a media release by its developers.

At the International Property Awards held in Orlando, Florida in November 2008, Zimbali Coastal Resort was bestowed with the Best International Property Marketing Award Worldwide out of a field of 4 000 entries and 97 countries.

Up to five nominees were selected from the highest scoring winners across 21 categories and as IFA Sales & Marketing Vice President [Africa and the Indian Ocean], Andreas Wassenaar says, “This competition pits the best companies from each country against each other and this year, the stakes could not have been higher, given the current economic situation.”

This is the third consecutive year that Zimbali has been recognised as one of the world’s pre-eminent mixed-use resorts at the CNBC Property Awards - for the 5-star residential and resort based lifestyle it provides. In addition to a third consecutive win in the category of Best International Property Marketing Worldwide, Zimbali was honoured with two five star awards at the International Property Marketing Awards, Europe and Africa, earlier in the year in the categories of Best Property Marketing, South Africa and Best Golf Development, South Africa. Zimbali was also awarded with three four star awards in the categories of Best Development, South Africa, Best Architecture, Single Unit, South Africa for ‘Monk’s Manor’ and Best Developer Website, South Africa.

Now in their fourteenth year, The CNBC International Property Awards celebrate global accomplishment and are aligned to the European and Arabian International Property Awards.


Submitted: 28 Jan 2009

shit thats one for the books, Bh is the biggest and somewhat best agency in Dubai

never heard of them! whats their story and why are they here?

According to my media sources -
the Durban Point EIA has been approved and will be announced in KZN Premier Sbu Ndebele's State of the Province Address in PMB tomorrow!!!

Hope it is correct!!!

Breaking Hot Property News

Durban waterfront gets thumbs up

Barbara Cole
February 18 2009 at 08:28PM

It's all systems go for the final phase and R4 billion construction at Durban's Point Waterfront.

The official nod has now been given to the long-awaited environmental impact assessment and Premier Sbu Ndebele announced this in his state-of-the-province address this morning.

It means that the controversial small craft harbour will now go ahead as well as the construction of a five-star hotel and retail zone.

Johnny Vassilaros, chairman of the Durban Paddle Ski Club, said it was a sad day for Durban, after hearing the news.

"We will definitely be getting hold of the minister (environmental minister Martinus van Schalkwyk) to ask how he gave the green light for development of the public land," he said.

Vassilaros said they would be making use of the appeals period, and would be consulting their legal team.

The small craft harbour and related activities will be the anchor in the eyes of the international community, providing a link between the land and sea, Neels Brink, head of projects with the Durban Point Waterfront Company, said at a function at the waterfront in November.

Further details of the development would only be made known by the company on Thursday.

Welcoming the positive record of decision for the environmental impact assessment, deputy mayor Logie Naidoo said: "This is another milestone and it's been well worth the wait. Now we can inject dynamism into the waterfront and get all the important phases going."

In November last year, a settlement was reached between the Durban Point Development Company (DPDC) and three major water sports clubs. The water sports clubs which were to be relocated to a nearby site under the settlement are the Point Yacht Club, the Durban Ski-Boat Club and Durban Undersea Club.

The Durban Paddle Ski Club did not sign the agreement.

The first phase of the development was the city's R750m uShaka Marine World, which provided the catalyst for the second phase - the various iconic buildings developed by 15 private sector investors.

Zweli Mkhize, the MEC for Finance and Economic Development, said that the expected R4-billion of development in Phase Three would create 6 000-8 000 direct new jobs during the construction phase and 6 000 permanent jobs once finished.
o This article was originally published on page 1 of Daily News on February 18, 2009
SOURCE: http://www.iol.co.za/index.php?set_id=1&click_id=124&art_id=vn20090218131443104C722088

According to my media sources -
the Durban Point EIA has been approved and will be announced in KZN Premier Sbu Ndebele's State of the Province Address in PMB tomorrow!!!

Hope it is correct!!!

you should have used the largest text size.
....

this is a very positive development. padde ski club se voet.

18th February 2009

It is official, Century City is the best area to live in!

It is official, Century City is South Africa’s best middle class *residential area to live in, according to a top level independent market research survey.

For the third year running Finweek partnered with market research company Ask Africa to help select and rank South Africa’s best suburbs or areas to live in with the survey results being published in the 15 January 2009 issue of Finweek.

The initial sample of 28 suburbs included 14 suburbs in each of two price categories - a middle class category where prices typically range from R700 000 to R2m and an upper end category where prices generally exceed R3m.

The suburbs chosen were those that had recorded the highest number of sales in a particular price category for the 12 months to October 2008.

The survey singled out 11 categories to measure the quality of life offered by each of these 28 suburbs throughout six of South Africa’s biggest cities namely Johannesburg, Pretoria, Cape Town, Durban, Port Elizabeth and Bloemfontein.

The 11 categories included safety and security, access to emergency and medical services, proximity to shopping centres, entertainment, tourism and leisure amenities; access to schools, universities and other places of learning as well as investment returns offered by properties in each area.

Century City, a 250ha mixed-use secured first place in the middle class component winning most of the 11 categories and scoring particularly high in recreation, retail and entertainment and for being in easy reach of many educational and medical facilities.

Centrally located on the N1 midway between the Cape Town and Bellville CBDs, Century City’s unique attractions include Canal Walk Shopping Centre (the largest in Africa), 8km of navigable canals that meander through the development and onto which many of the residential projects front, and Intaka Island, an award-winning nature conservation area. *A state of the art Virgin Active gym, numerous hotels, convenience retailing and restaurants all add to the equation.

While the bulk of residential property sales in Century City have been for homes costing less than R2m, Century City offers a wide range of residential product ranging from luxury freestanding homes on the water to trendy highrise lock-up-and-go apartments as well as a retirement resort. *Studio and one bedroom apartments cost between R750 000 and R1,7m depending on which development you wish to buy into, a two bedroom apartment or freestanding house will cost anywhere between R900 000 and R3,2m with three beds ranging from R995 000 to R5m.

Two other Cape Town suburbs were in the top three countrywide, namely Pinelands and Observatory.

The best upper income suburb to live in, according to the survey, is Westcliff in Johannesburg with Clifton in second place followed by Woodhill Country Estate in Pretoria.

Expats boost CT property
Article By:
Wed, 04 Mar 2009 13:18

Returning expats are not only fuelling rentals across Cape Town, but also sales.

According to Lanice Steward, MD of Anne Porter Knight Frank, the much-discussed return of South African expatriates from overseas countries hit by the world’s economic woes is having a beneficial effect on the Cape property market as a high proportion of these people are heading for Cape Town.

"I am told that 200 000 bankers and financial sector staff have lost, or will lose, their jobs worldwide," said Steward. "The good news is that those returning to SA now comprise nearly three percent of our buyers and, in our experience, are finding jobs here often by setting up in a new business, which is good for the economy.

"Most, too, are capable of paying large deposits or of buying the property with one cheque. This means that they are not held back by the National Credit Act rulings."

UK and EU retirees coming to SA

A steady, though small, stream of retired persons, said Steward, is also still coming to South Africa from the UK and Europe — and she predicts this will increase.

"On the current exchange rate they still get far more for their money and enjoy a far better lifestyle than is possible in their home countries. I am quite certain that if SA published the figures of our houses more widely overseas we could attract far more foreign retirees — particularly with the publicity that the World Cup and the election brings.

"If this election is carried through peacefully the message that we are a reasonably secure society will go out to the world. I, for one, am confident that there will be only minor disturbances and that 2010 will so raise our profile internationally that we will attract more home buyers."

Returning expats fuel rentals across CT

In the face of high interest rates and stricter than ever lending conditions at the country’s banks, many would-be first-time homeowners are finding it difficult to enter the market at present. The result is an upswing in rental activity across Cape Town, says Pam Golding Properties’ Western Cape Rentals Director Dexter Leite. He says there has been a surge in activity across all areas and price ranges — fuelled not only by those who can’t afford to buy, but also by the number of expatriates returning home to South Africa.

"Right now we are seeing high demand in all of the traditionally popular areas such as the Southern Suburbs and Atlantic Seaboard," says Leite, "as well as in the Northern Suburbs and the Blouberg region. The City Bowl has also seen high levels of rental activity as more and more people seek to avoid the cost and frustration of commuting and traffic congestion by living close to their places of work. Historically, these popular areas have always been short of rental properties and this has not changed for those properties which fall within the sought-after parameters such as modern two-bedroom apartments or three-bedroom homes which are appropriately priced. Our Western Cape rentals branches concluded more than 150 lets in December 2008 and in excess of 100 in January 2009 and we have continued to experience very high levels of activity into February."

Among those fuelling the demand for rentals are the returning expatriates who are coming home after spending a few years overseas. For them, says Leite, letting can be a very sensible option, especially upon their immediate return. "Many of these people have been out of the country for an extended period," he says, "and during their time away their specific needs may have changed quite substantially — for example, their financial status, their marital status and their employer. They may also find that the cities they lived in before have changed substantially with new infrastructure affecting commuting options or new business hubs having developed where they might want to work. For these returning expatriates it can be most beneficial to first rent for a short term while they assess what their new needs are, consider different suburbs where they might wish to settle and get a feel for commuting times. Renting provides them with the flexibility to make these decisions without pressure. It also allows them to focus on finding their feet and re-establishing themselves in South Africa without having to worry about homeowners’ responsibilities such as maintenance, a mortgage, insurance, rates and taxes."

Retired visitors from the EU and UK renting whilst considering settling here permanently

A further emerging trend is for retired visitors from Europe and the UK to come and spend an extended period in South Africa — a year or sometimes more. Some of them are renting whilst considering the possibility of settling here permanently, says Leite, while others are simply here for an extended holiday. With exchange rates working in favour of those with foreign currency, there are many opportunities for them to rent high-end properties in prime locations such as on the Atlantic Seaboard.

Leite adds that PGP continues to see particularly high levels of activity at the top end of the rental market, mainly in the more exclusive areas of the Southern Suburbs and Atlantic Seaboard where clients are seeking properties that support and epitomise a secure lifestyle with all the benefits that an up-market property in an exclusive suburb can offer.

Rentals here can range from R30 000 per month to R80 000 per month — or even more in isolated cases. In the period from November 2008 to February 2009, PGP agents have concluded lease agreements of R65 000 and R120 000 per month for houses in Bantry Bay, R25 000 per day for a house in Bishopscourt (on a holiday/short-term let basis) and R70 000 per month for another house in the same suburb. PGP has also recently concluded a R115 000 per month lease in Bishopscourt on a short let basis. The company has further let homes in Camps Bay for R36 000 and R28 000 per month and a Constantia property for R50 000 per month. Also notable were leases in the City Bowl for R35 000 and R32 000 per month and R15 000 and R16 000 in the Northern Suburbs — particularly high for this area. The market for apartments is also strong with PGP agents achieving rentals of R75 000 and R23 000 per month for units in the Waterfront and R20 000 per month for an apartment in Mandela Rhodes Place in the central city.

The CEO of ERA South Africa property group agrees

The global credit crunch may have at least one positive aspect to it, namely encouraging South Africans who have been living abroad to return to the country and in the process provide a degree of stimulus for the property market.

Gerhard Kotzé, CEO of the ERA South Africa property group, says anecdotal evidence suggests this is already beginning to happen — and that many South Africans have postponed their emigration plans.

"There is a new wave of joblessness in the UK, Australia and the US; traditionally regions that have attracted skilled South African emigrants. Even Dubai, where there are an estimated 50&nbsp000 South Africans, has felt the waves of the global recession. Worldwide jobs are scarce and retrenchments are the order of the day, most notably in the UK financial sector, retailing and tourism.

"By contrast South Africa, while by no means having escaped the impact of the global economic problems, is comparatively better off in terms of employment opportunities, a situation created paradoxically by the emigration of the last few years, but also by the fact that the country has a relatively sound business and banking sector."

Nobody is suggesting that we’re about to see a flood of South Africans returning to the country, he says. "Nonetheless there are indications of something of a reversal of the outflow of recent years. Guy Lundie, co-author of 'South Africa, Reasons to Believe' has been quoted as saying the grass on the other side is looking a little less green.

"Also the Homecoming Revolution, a group which tries to persuade South Africans living abroad to return home, was recently quoted as saying that four out of five South Africans who attended a group exhibition in London last year were planning to return to South Africa."

Kotzé says that in addition, personnel agencies are reporting a 'dramatic' increase in the numbers of international professionals and South African expats seeking employment in South Africa.

"And realistically, prodigal South Africans equipped with sterling, euros or dollars could provide something of a fillip for the property market."

Good news for Cape developers: land use saga
Realestateweb reporter
04 March 2009

It’s back to business for thousands of developers who thought they’d lost zoning limitations following Western Cape provincial govt bungle.

The Western Cape's provincial government has fixed up a bungle that saw property owners lose land use rights and threatened multi-million rand developments.

That's according to Tommy Brummer, principal of Tommy Brummer Town Planning, who said at a Seeff presentation in the city recently that the zoning schemes have now been reinstated and will continue to remain valid until 2011.

One of the property owners that saw red when the bungle was exposed was Old Mutual, who bought land for about R87m to find that rights had lapsed and it could effectively build a single residential dwelling there, said Brummer.

Earlier this year Helen Zille, Mayor of Cape Town and leader of the opposition Democratic Alliance, said it was is unacceptable that an administrative bungle by the Provincial Department of Planning and Environment relating to the Land Use Planning Ordinance (LUPO) had caused Cape Town property owners' land use development rights to lapse without their being warned.

Former premier, Ebrahim Rasool, allegedly signed off the ordinance to extend the validity of the zoning schemes too late.

"This is a matter which could shake public confidence in Cape Town's property market at a point where our economy is already under strain," she said at the time.
Brummer said zoning restrictions for the City of Cape Town were introduced in 1940's and were set to lapse in the earlier part of this decade. However, this was postponed several times.

The plan is that zoning schemes will lapse in 2011, however the "property industry intends to put pressure on province to have it deleted, not amended", he said of the proposal that the limitations fall away.

Property owners affected included those who have a business-zoned property or one that is zoned for blocks of flats. If the maximum use rights have not been used by 2011, the zoning will revert to single dwelling residential use only and the right to develop will fall away. For many property owners this will result in a substantial loss of property value without any compensation, said Brummer.

...

hopefully it comes to life... here's a 'hot property' cross post...

IT'S NEW AND IT'S BEING LAUNCHED THIS WEEKEND

Cross post from Durban and Durban Point Thread


THE HOTTEST STORY / PRIVATE HOTEL DEVELOPMENT ON THE DURBAN POINT YET IS SET TO BREAK ON MONDAY!!!:banana:

Teasers:

* Tallest hotel in Durban central for decades
* R500 million
* 315 rooms
* Public launch last night at the Point and Investors launch at Imbizo Conference Centre @ Sibaya tonight
* Planned for the San Rafael (sp?) site
...
......

howzit guys... yes similar to SF's design...
here's the renders e-mailed to me from Quicksilver...


Side view
http://i85.photobucket.com/albums/k59/DURBAN2010/LangaSunHotelDBN2.jpg

Front view overlooking Ushaka and Beach Front
http://i85.photobucket.com/albums/k59/DURBAN2010/LangaSunHotelDBN1.jpg

View overlooking the DBN Harbour
http://i85.photobucket.com/albums/k59/DURBAN2010/LangaSunHotelDBN4.jpg

"Also the Homecoming Revolution, a group which tries to persuade South Africans living abroad to return home, was recently quoted as saying that four out of five South Africans who attended a group exhibition in London last year were planning to return to South Africa."

No shit sherlock (to the writer of the article, not Mo!), why else would they be there! :nuts:

LMAO

City Bowl rentals booming
Article By:
Thu, 30 Apr 2009 11:12

Rentals in Cape Town's popular City Bowl are escalating rapidly as strict bank lending protocols take the wind out of potential buyers’ sails.

So says Yazid Khan, letting agent for the Chas Everitt International franchise in the area, who notes that many of those keen to buy property in the City Bowl are having trouble qualifying for the home loans they would need.

The majority of those looking to live in the City Bowl are young, up-and-coming professionals who have either returned from the UK or are moving up in the world and wish to acquire their first major asset. Sometimes parents are also footing the bill for their student children who wish to live there. The area’s aesthetic appeal, lively nightlife, upmarket coffee shops, cafés and trendy retailers make it an obvious choice for this market.

However, he says, the properties these buyers would really like to purchase generally range in price from R1.2-million to R2.5-million which is currently beyond their means. And so, rather than cut back on their lifestyle, many are renting instead in the hope that their financial situation will improve and they will be able to afford the properties they want at a later stage.

"As a result, the City Bowl rental market has been inundated and landlords can now pick and choose their tenants. Rental prices have also risen and even doubled in some instances — although they are still far lower than in areas such as Clifton and Camps Bay.

"Mandela Rhodes Place, Mutual Heights, The Adderley, The Studios, The Rockwell, Wembley Square, Icon, Harbour’s Edge, Flat Rock and Hip Hop Plaza are just some of the sought-after City Bowl addresses where rents have risen fast. One- and two-bedroom apartments in these complexes now rent from R6000 per month to R9000 per month and more, compared to a year ago when they were renting from R4000 per month.

"What is more," says Khan, "tenants as well as landlords are currently favouring long-term leases which suggests that they see rentals going even higher and wish to guard against sudden increases."

The next Clifton?

Article By:
Mon, 15 Jun 2009 07:44
Blouberg, an area in the Cape renowned for its great views of Table Mountain and still relatively affordable property, seems to be chartering a course towards the top rung of the property ladder.
Taking a closer look at the property market, Fanie Lategan, principal of Chas Everitt Western Seaboard, says that while sales are down on last year the market is still buoyant compared to other areas of Cape Town. "The challenge," he says, "lies with the banks’ strict credit policies meaning only about one third of home loan applications are approved."



The rental market in Blouberg is extremely buoyant. "This," says Lategan, "is due to the fact that people are struggling to get bonds, which is forcing them to rent rather than buy." He says rentals between R3000 and R5000 per month are in high demand, with homes closer to the beach renting for about R10 000 per month.



Deon Lessing, marketing director at bond originator Betterbond, agrees with Lategan saying originators are also experiencing difficulties even though they are working hard to get bonds approved. "But," says Lessing, "it is encouraging to note that the number of bonds granted by the banks is on the increase, with the ratio between bonds submitted and bonds granted steadily improving."



Average selling prices for Blouberg property on the other hand range from around R900 000 in Parklands to R2-million in Big Bay. Lategan says entry level prices are still below R500 000, but some properties close to the beach are on the market for R20-million plus.



"The contraction of the market has once again brought about more apparent value for investors and buyers," says Lessing who goes on to say that value can still be found in the market and excellent property opportunities await the astute investor.



Factors that are set to stimulate the Blouberg market even further, in Lategan’s view, include the rapid transport system currently being rolled out in the area, which he believes will have a significant impact on area and alleviate traffic problems. "It will contribute to the area’s popularity and provide easy and convenient access to the Cape Town CBD," he says.
Going forward, Lategan says that Blouberg is expected to become a natural extension of the Camps Bay, Clifton and Bantry Bay lifestyle due to its far greater affordability and location on the Atlantic Ocean.



"Blouberg/Parklands are the most significant growth areas close to the Cape Town CBD. They offer affordable property and are therefore popular with young families. Blouberg is also a popular tourist destination with spectacular views of Table Mountain and one of the best kite surfing beaches in the world," Lategan says. "I think we have seen the worst and I expect the market to turn in the latter part of the year and continue to improve substantially during 2010 — depending on the banks’ credit policy," he concludes.

SA ski resort for sale
Fri, 01 Apr 2011 12:14 from iafrica

An auction group on Thursday said that South Africa’s only ski resort has drawn major interest from potential buyers both locally and abroad.

Tiffindell, which is situated in the southern Drakensberg in the Eastern Cape, will go under the hammer in May.

The High Street Auction Company’s Spiro Barbaresso said, "From our first editorial, we’ve got a lot of interest expressed from a lot of the South African leisure companies. We’ve had international interest from groups running ski resorts in Europe and America."