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| Real Estate Developments South Africa Retain Value Well |
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Estate living has grown in popularity around the world and South Africa is no exception.
In line with these international trends, a multitude of residential estates and other property developments have been created across South Africa in order to fulfill homeowner’s lifestyle requirements and their need to be close to a range of amenities and facilities.
Joris Kröner, MD of estata, points to the United States, where 56% of respondents in National Association of Realtors’ Community Preference Survey indicated that they favour walkable, mixed-use neighbourhoods over neighbourhoods that require more driving between home, work and recreation.
“Walkable communities are defined as those where shops, restaurants and local businesses are within walking distance from homes,” explains Kröner, who adds that according to the survey, 77% of respondents said they would look for neighbourhoods with abundant sidewalks and other pedestrian-friendly features when considering a home purchase. A further 50% indicated that they would like to see improvements to existing public transportation rather than initiatives to build new roads and developments.
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| Mjejane Game Reserve and its Agreement with the Kruger National Park |
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The 4,000 hectare Mjejane Game Reserve eco-tourism development borders the Kruger National Park along 10 km of the Crocodile River.
The 23rd of June 2009 marked a historic occasion in the development of Mjejane Game Reserve and its agreement with the Kruger National Park. In its support for Mjejane Game Reserve, the Kruger National Park started re-stocking Mjejane Game Reserve by delivering giraffe, zebra and wildebeest which, on their own, delayed crossing the Crocodile River into Mjejane Game Reserve. Later, white rhino and more zebra will follow and possible impala in order to create a sustainable tourism experience. These species will attract more predators onto Mjejane Game Reserve and so offer visitors a meaningful game experience, as up until now, the dominant large species on Mjejane Game Reserve were elephant and buffalo. The Mjejane Game Reserve started with a land claim that awarded to the Mjejane Community, situated a few kilometers east of Hectorspruit, and could be hailed as a workable model for land reform processes in the country.
| Mjejane Game Reserve Press Release, 23-06-2011 |
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| Property Developers Size up Africa |
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Economic growth in Africa projected to surpass 7% this year, South African businesses are eyeing up the opportunities this presents.
Amongst those are property developers, who stand to benefit significantly from economic expansion on the vast continent and therefore need to have a thorough understanding of the different local conditions that present themselves in African countries.
At 30.3 million square kilometres, Africa is large enough to fit China, the US, Western Europe, India and Argentina. It has the fastest growing population in the world, estimated to reach one billion in the next six years, and sub-Saharan Africa is also one of the most rapidly urbanising regions in the world with a fast growing middle class. According to a recent Mastercard Worldwide Insights Report, it now has 52 cities with more than one million people, which is more than double the number in 1990.
| South African Property Owners Association (SAPOA), 17-06-2011 |
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| Country Contemporary - The Reeds at Balgowan |
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When taking a road less travelled in the Midlands, there can’t be a soul who doesn’t play with the idea of, ‘I could live here’.
The mantle of calm descends as slowly and soothingly as an intravenous drip, and gradually, the quiet, the landscape and the sheer simplicity of life become your desire.
Of course, this doesn’t preclude extreme comfort, luxury and privilege. ‘Simplicity’ is more a reference to pure, uncomplicated pursuits, such as fishing, birdwatching, hiking and just watching and feeling the slow, unmistakable change of the seasons.
Donovan Neale-May owns this, the first home in The Reeds at Balgowan estate. He’s also the accidental developer. ‘A friend of mine put in an offer for the land to an old Midlands farming family who’d owned large tracts here since the days of the Voortrekkers. He asked me to finance the project, and when I visited the area, I was captivated by its setting and the potential it had to combine eco-living with an active outdoor lifestyle.’
The Balgowan area is redolent with history, even to the point of old wagon trails on the property. His purchase of the site’s adjoining land ensured a combination of indigenous and commercial forest, so the natural privacy of The Reeds is perfect for those who value serenity and space in an exquisite setting.
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| Outlook for Property Prices |
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House price growth in various segments has continued to slow down after adjusting for consumer price inflation but house prices may increase marginally during the coming year according to figures contained in Absa’s Quarterly Housing Review.
Senior property strategist for the bank, Jacques du Toit says that this can be attributed to various factors including high levels of household debt in relation to income, no further interest rate cuts, the state of consumer credit records and the impact that this has on banks’ lending criteria.
He says that the in the affordable housing market (house sizes of between 40m2 and 79m2) and priced at R480k or less, the real drop in prices was 3,9% although in nominal terms prices were just 0,3% lower year-on-year (y/y).
In the small houses category (80m2 to 140m2) the fourth quarter of last year showed nominal growth of 9,3% and real growth of 5,6% y/y.
For medium-sized houses from 141m2 to 220m2 the nominal price growth was 3,3% but the real growth was 3,4% lower than the previous year. For large houses (221m2 to 400m2) the nominal growth was 2,4% y/y but prices dropped by 1,1% in real terms.
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| BRICS Brings Huge Opportunities |
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It happened without anybody noticing because the world was watching China then India, grow in leaps and bounds. Along came BRIC (Brazil, Russia, India and China), now South Africa has joined BRIC, turning it into BRICS.
Now South Africa has joined BRIC, turning it into BRICS, adding enormous opportunities for intra-BRICS and Africa trade and investment. Africa’s growth is now getting its due — as it should — as the continent’s GDP has doubled in a decade. Proof of this growth is the fact that trade between Africa and BRIC, which has been double the global average, is on the increase and all pundits predict an even greater growth trajectory. South Africa is by far the biggest economy on the continent with sophisticated financial markets, a soundly-regulated and well-regarded banking system, clear intellectual property adherence rules, a stable and democratic government — and above all, is the biggest investor on the continent. South Africa recognises that its destiny is inextricably linked to that of the continent and that regional growth is fundamental to the continent’s massive potential.
At the same time, South Africa is at the forefront of Africa’s regional integration efforts by initiating, for example, continental north-south rail and road links, championing infrastructure investment, skills development and a single free-trade zone.
| International Marketing Council of South Africa, 30-04-2011 |
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| Eastern Cape Property Market Improves |
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The Eastern Cape residential property market appears to have battled its way back from a severe slump that coincided with the severe economic recession, according to the latest FNB property barometer.
The year-on-year rate of increase in the average house price was 8.6% in the first quarter of 2011, which was a further increase on the 7.1% of the previous quarter, and this represented the fourth consecutive quarter of positive year-on-year growth in the index.
"Our FNB valuers' panel still, however, suggests that there is some work to be done in restoring the market balance to a healthy level - rating demand is still weak relative to the way it rates supply.
"In effect, the results of our FNB estate agent survey for the Nelson Mandela Bay Metro support this view. The agents surveyed still suggest a somewhat unrealistically priced market in the province's largest city region, with 87% of sellers still having to drop their asking price in order to sell, as at the first quarter of 2011 - using a two-quarter moving average - while the average time of a home on the market was 12.1 weeks, where an average of nearer to two months would arguably suggest a healthy market," said FNB property strategist John Loos.
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| Fewer Apartments Stand Empty |
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Buy-to-let property investors finally have something to cheer about, with latest data pointing to an improved outlook for residential rental growth.
The average flat/apartment vacancy rate across South Africahas dropped from a peak of around 6% in fourth quarter 2009 to the current 4%.
Figures from property economists Rode & Associates show that the number of empty rental units has shrunk noticeably in recent months. The average flat vacancy rate across South Africa has dropped from a peak of around 6% in fourth quarter 2009 to the current 4%.
John Lottering, editor of the quarterly Rode Report, says it appears that the increased take-up of rental properties in 2010 is already placing upward pressure on rentals. What’s more, says Lottering, in some regions year-on-year growth in fourth quarter 2010 has accelerated to rates that are at least on a par with consumer inflation of 3% to 4%. From mid-2009 to mid-2010 most regions delivered zero growth in rentals.
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| South African Property Industry Hails Inclusive 2011 Budget |
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Members of the property industry have given the national Budget announced this week an overall thumb's up, although there were a few items of concern.
Speaking in response to the Finance Minister's Budget speech on Wednesday, Young Carr, CEO of Aida National Franchises, said: "From a macro-economic perspective the Budget was very encouraging, and underlined again how well SA has done in comparison to many other, more developed counties in dealing with the fallout from the global economic crash.
"With the definict down and overall tax revenue up, the Finance Minister seems to have found at least some funds for just about everyone - including the often forgotten pensioners who have been struggling as a result of the lower interest rates that are regarded as a positive by just about everyone else.
"Looking at the specifics, we were especially pleased with the R122bn allocation for the provision and improvement of housing, water and community amenities this year, and the annoucement that government is to spend more than R21bn over the nest three years upgrading no less than 400,000 homes in informal settlements.
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| Growthpoint, PIC Buy Victoria and Alfred Waterfront for R10 Billion |
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Despite initially denying it, Cape Town's Victoria and Alfred Waterfront has been sold to a consortium of investors for R10bn.
Investec Bank Limited ("Investec") is authorised to announce that on 10
February 2011, Growthpoint together with the Public Investment Corporation
Limited ("PIC") representing the Government Employees Pension Fund
(collectively the "Purchasers") entered into an agreement with inter alia,
Strawinsky Properties BV and Istithmar South Africa FZE ("Sellers") to
acquire, in equal proportions, 100% of the Sellers` interests in Lexshell
44 General Trading (Proprietary) Limited ("Lexshell"), which is inter alia
the owner of the V&A Waterfront, with provision for the acquisition of the
remaining ordinary shares held by Lexshell`s empowerment shareholders (BEE
shareholders) (the "Transaction"). On successful completion of the
Transaction, the Purchasers intend to own 100% of Lexshell.
| Growthpoint Properties Limited, 14-02-2011 |
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