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| Freehold Property Outperforms Sectional Title |
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Latest Lightstone house price index shows that owners of freehold houses have earned much higher returns on their properties over the past three years than investors who bought sectional title townhouses, apartments and flats
Latest house price data released by various banks and other industry players confirm that the widely anticipated slump in housing sales and prices has yet to materialize.
But not all sectors of the residential property market continue to perform equally well. Latest house price index released by Johannesburg-based mortgage risk management company Lightstone shows that owners of free hold houses have earned much higher returns on their properties over the past three years than investors who bought sectional title townhouses, apartments and flats.
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| Property Developers Await Final Decisions on Inclusionary Housing Policy |
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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.
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| World Cup Fever Germany Balances the Books |
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As 2010 World Cup fever continues to climb, South Africa may be wise to temper its expectations as Germany balances the final books on its own World Cup and discovers the post-match coffers are not quite as full as predicted
Shortly after the announcement in May 2004 that South Africa would host the 2010 FIFA World Cup, it was predicted that the country could expect R21,3 billion to be pumped into the economy. The latest predictions place that amount at R30 billion, resulting in an estimated 150.000 new jobs created. The impact that this will have on the South African economy is being touted as “enormous”, spurring economic growth to between 5 and 6%, and everyone — from the tourist trade to the property industry — is breathless in anticipation. But are we expecting too much?
One year post the hosting of the last World Cup, Germany is finalising its own balance sheets on the event and finding that — while the event no doubt boosted national pride, PR and patriotism — it has had virtually no impact on the economy as regards short-term growth and employment.
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| Green Building Council Announced for South Africa |
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SAPOA CEO Neil Gopal announced at the 39th SAPOA International Convention, the establishment of a Green Building Council for SA, a move that will bring the commercial and industrial property industry in line with global environmental practice
The mission of a Green Building Council is to promote and encourage environmentally sustainable practices in the property industry through, as Gopal points out, market-driven solutions. Green Councils in Australia, New Zealand, the US and Canada also manage a certification system for new and existing buildings.
“The Board fully supports the establishment of a Green Council in SA,” says SAPOA CEO Neil Gopal, who attended the Green Building Council of Australia’s annual conference in February for preliminary talks on the way forward.
“As an industry, we need to start thinking seriously about the environmental impact of developments – and we need to think green concepts within development plans in advance of government regulations,” says Gopal. “We must ensure that government alone does not set the regulations.”
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| Claremont Upgrades Central Area |
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The cranes are flying in Claremont Central - Claremont's Business District. They provide the obvious symbol of some R2-billion of private sector investment that is creating new office, retail and residential development in the area
The City has been working with the CIDC on proposals for upgrading the entire public environment of Claremont Central and a two-year study by consultants has been completed. Officials hope to obtain Council approval for its recommendations by the end of the year. The public consultation process now underway is an important step in this process.
A public participation programme, including exhibitions and a public meeting, has also been formulated.
The study's proposals see the streets and squares of the area being reclaimed for pedestrian use, with residents benefiting from a selection of treed outdoor places, where birds and birdsong replace motor cars and tarmac.
| Claremont Improvement District Company, 02-05-2007 |
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| Tourism Encourages Interest in South African Property Market |
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Foreigners are definitely showing a stronger interest in SA’s property market, particularly the hotel and leisure property sectors
Pace Property Group MD David Green says the interest in the hotel and leisure market is due to the fact that the country is becoming a popular tourist destination and investors consider SA to be “undersupplied” with quality hotel accommodation.
“Generally there is a trend throughout the world to seek investments in emerging economies such as eastern European countries, Asia and southern Africa.”
But the South African property market still has a way to go in terms of the size of the property transactions available.
Green says a recent single European transaction was equivalent to, if not greater in size than, any of SA’s largest JSE-listed property funds.
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| 2010 Triggers Massive Growth for Cape Town |
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The 2010 World Cup Soccer Tournament is the single biggest catalyst that will help trigger major infrastructure investments in Cape Town
Addressing the Cape Town Press Club last week, City Manager, Achmat Ebrahim, said that the stadium at Green Point and supporting infrastructure for 2010 are the biggest capital projects Cape Town has ever undertaken.
"It is not just about the construction of the stadium. Nor is it just about soccer. It is an unprecedented opportunity for the City to overhaul its public transport system, upgrade major road networks and other facilities.
"Often and unfairly, Cape Town has been portrayed as being out of step with the rest of the country and lacking the will to pull it off in time. This is not so. We had to go through a host of statutory approval processes and major obstacles over many months. These included an environmental impact assessment, rezoning, consent use and building plan approval. We also had to overcome legal challenges and funding crises.
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| Listed Property versus Direct Property |
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Which should you be investing in if you have a bit of extra money to invest and your heart is set on property, then consider going listed and direct property?
Rode's latest report for the quarter ended December 2006 stated that the most significant benefits of investing in listed property as opposed to the buy-to-let market are diversification and increased liquidity.
With listed property, an investor would easily be exposed to a portfolio of properties in different areas and across various market segments, whereas this would be costly and more difficult with direct property.
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| Golf Estates in South Africa Taking Off |
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Ongoing research over the past decade has proved to us conclusively that there are two principle reasons for investment in real estate around a golf course - security and community
During the past 10 years golf estate living has taken off in South Africa, and while there is certainly room for growth and further development, the parameters have changed dramatically and there is a great deal more for a potential developer to consider before taking a bold step into the golf estate development environment, says Dr Andrew Golding, CE of the Pam Golding Property group.
"Over the past two to three years, there has been a fundamental shift in the state of the market, which we believe is due to the nature and location of the product available, the status of the potential buyers, and the way in which these two interact. "The fact that golf estates have become the perceived 'rich man's haven' is as much due to basic economic principals as anything
else. To build a golf course of any quality costs in the region of R40m plus and once you've added the cost of the land, club house facilities, spa and other amenities, you have a business scenario not for the faint-hearted, with the only means of reclaiming the investment being through the sale of residential stands. "When the concept of golf estate living first took off, there was a substantial block of leisure market purchasers, looking for a weekend or holiday property, certainly enough to fuel the market and support broad-based speculative purchases.
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| Guest House Property Market Heats Up |
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South Africa continues to attract international investors seeking to relocate and invest in lucrative Guesthouse opportunities
"In the Western Cape during the current month of March (2007) alone, we are in the final stages of concluding transactions for the sale of lodges and guesthouses at a total value of R47-million, while in Gauteng, through our a further R30-million's worth of deals are currently being signed," says Bruil.
"Buyers are a mix of Dutch, UK, German, Kenyan, Cameroonian and Spanish investors, plus most recently, purchasers from the Czech Republic.
These are well-established people, already successful in their careers, who see South Africa as their new home and want to have their own business here. Some are already living here.
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