Real Estate & Rental & Lettings News in South Africa from Propertyshowrooms.com

New South African laws 'may affect real estate investors'

Thu, 17 May 2012 00:00:00 GMT

Property investors who own real estate in South Africa and lease it out need to be aware of new legislation being introduced in the country.

Attie Pretorius, director and head of the national real estate practice at law firm Cliffe Dekker Hofmeyr, explained the Rental Housing Bill will have implications for landlords.

One chapter of the legislation relates to the establishment of tribunals to solve disputes between landlords and tenants, such as issues relating to overcrowding or poorly-maintained properties.

Meanwhile, Cape Town has recently introduced a by-law to tackle the problem of dilapidated and abandoned buildings, which allows the local authority to repair or demolish a property at the expense of the owner, Mr Pretorius added.

In a recent article for MoneyWeb, commercial property national head at Rawson Property Group Jason Lee urged landlords to exercise caution when choosing tenants. He advised those leasing out homes not to be worried about asking for large deposits, as this financial protection is needed because landlords are liable for charges when tenants default on bills to utility companies.

Global interest in South African property market

Fri, 25 Jun 2010 00:00:00 GMT

Interest remains strong from the UK and other European destinations when it comes to investing in property abroad in South Africa.

A recent analysis of traffic on the Lew Geffen Sotheby's International Realty website showed that a number of investors are seemingly keen to purchase property for sale in the country.

It was noted that visits to the site from UK residents have increased by 23 per cent, with worldwide interest seen across different parts of South Africa.

Jason Rohde, chief executive of Lew Geffen Sotheby's International Realty South Africa, said: "Interest is now more widespread, with people from all over the world looking into buying property here.

"Where it was once primarily luxury holiday homes in coastal regions that were being snapped up by foreigners, we are seeing an increase in the number of smaller properties in the metro areas of Johannesburg and Cape Town being sold to international investors."

However, he added that property investors are now being more cautious when it comes to weighing up their decisions and are seeking value for money, alongside factors including home security.

Jacques Ellis, manager of Cluttons estate agents, told the Independent earlier this year that South Africa good be a country to watch in 2010, with strong possibilities for improvement in the property market.

South Africa one to watch in 2010

Mon, 18 Jan 2010 00:00:00 GMT

South Africa offers good prospects to potential investors in 2010, according to reports.

UK newspaper the Independent has reported that the combination of the forthcoming football World Cup and a resurgence in the housing market make the African nation a "good hope" for investors.

Jacques Ellis, manager of Cluttons estate agents, told the paper that despite the credit crunch causing the property market to level out, things were beginning to pick up once again.

"In the past few months we have seen life return; sales and enquiries are up and we expect, with the global focus on South Africa in 2010, that this will continue with international buyers returning in force," he commented.

The 2010 World Cup will attract hundreds-of-thousands of visitors to South Africa, meaning those thinking of investing in property in the country may look to buy residences that can be rented out during the tournament.

Those who do so may also benefit from a longer-term growth in tourism in the country resulting from South Africa's greater exposure.

South Africa in accommodation pledge

Thu, 10 Dec 2009 00:00:00 GMT

South Africa has insisted it will be able to accommodate the influx of football fans heading to the country for the World Cup next summer.

Tourism minister Marthinus van Schalkwyk said that over 400,000 beds would be available for the influx, which will include thousands of English visitors.

He was speaking after an audit revealed that some of the smaller venues may struggle to provide enough in-town accommodation.

However, executive co-chairman of Match Event Services Jaime Byrom remarked: "There has always been the case that an event of the magnitude of the Fifa World Cup cannot be accommodated in its entirety in every host city."

With demand for places to stay so high, those thinking of investing in property in the country may look to buy residences that can be rented out during the tournament.

Those who do so may also benefit from a longer-term growth in tourism in the country resulting from the publicity enjoyed by South Africa.

English fans following the team will see group matches in Rustenburg, Cape Town and Port Elizabeth.

Cape Town rental may hint at World Cup success

Thu, 3 Dec 2009 00:00:00 GMT

An unknown celebrity has paid USD1 million (GBP599,000) to rent a property in Cape Town for the duration of next year's World Cup.

The individual will be spending the tournament based in the fashionable Atlantic coast suburb of the city, director of Ronnie Mathews Estates Clinton Braude has revealed.

He added that other properties are said to have been rented out over the same period for large sums of money.

The news may be an indicator that those who invest in rental property in South Africa could secure healthy returns from rentals during the tournament.

Such a purchase might also have longer-term benefits if the event helps bolster tourism in the country by projecting a positive image.

The draw for the tournament will take place on Friday, which will decide which countries play their group matches in Cape Town and each of the other venues.

Cape Town's newly-built Green Point Stadium will host several games, including one of the semi-finals.

South Africa house prices start to rise again

Thu, 26 Nov 2009 00:00:00 GMT

South Africa's property market saw the start of a recovery in the third quarter of this year, according to new data.

Data from the Global Property Guide's report on the period between July and September revealed that in this time the average house price in the country rose by 0.55 per cent on the second quarter tally.

The year-on-year figure represented a 7.1 per cent decline, which may suggest that buyers can pick up a cheaper property now while expecting prices to rise over the coming months.

Such figures are based on a calculation of prices that takes into account the increase over and above inflation.

The country's central bank recently decided to hold interest rates after a fall in inflation was recorded.

Buyers may even benefit from cuts as the Monetary Policy Committee of the South African Reserve Bank stated that all the pressures on inflation at present are downward.

Homes in South Africa 'cost much less'

Tue, 20 Oct 2009 00:00:00 GMT

It is possible to get a home in a fashionable district in South Africa for a fraction of the cost of properties in London or New York, it has been suggested.

Chairman of Sotheby's International Realty SA Lew Geffen told Times Live that on average such homes in Cape Town or Johannesburg can be had for a third of the equivalent prices in Britain or the US.

He stated that "one could acquire an ultra-modern loft apartment in central Cape Town, or a three-bedroom apartment right on the beach front in Sea Point" for the cost of a one-bedroom apartment in London.

This figure would be around ZAR1.3 million (GBP108,000), he noted.

Similarly, a two-bedroom, two-bathroom townhouse in Johannesburg's Houghton district can be bought for the same cost as a one-bed studio flat in Manhattan.

Cape Town was recently tipped by chief executive of Durr Estates Julian Reynolds to perform well in the next year as the country's market recovers.

He wrote on Real Estate Web that the metropolitan area has seen the biggest price drops in the slump and thus may experience the largest bounce-back.

Cape Town tipped to bottom out

Wed, 14 Oct 2009 00:00:00 GMT

Cape Town could be the best place to invest in property in South Africa, a real estate expert there has argued.

Writing for South African property site Real Estate Web, chief executive of Durr Estates Julian Reynolds noted that the city has seen the largest price falls of any metropolitan area in the country, with 91 per cent of homes sold below asking amounts in the second quarter.

However, he added: "With prices expected to bottom out over the next few months, the potential upside for the Cape property market exceeds that of other provinces."

Mr Reynolds said the city will be aided by its tourist popularity and by the particular focus that will be placed on it as a host city in next year's World Cup, which may help stimulate more property investment.

Last month, the Knight Frank Global House Price Index indicated that during the second quarter of 2009 prices in South Africa dropped by 1.4 per cent.

This was an improvement on the 1.8 per cent dip in the opening three months of the year, suggesting the downturn in the property sector has been losing momentum.

South African property prices 'stabilising'

Sat, 5 Sep 2009 00:00:00 GMT

House prices in South Africa are starting to stabilise, it has been suggested.

Banking group Absa has recorded a 3.4 per cent fall in prices in the year to August, down from 3.7 per cent in July and 3.8 per cent in May, suggesting the downturn in the sector is losing momentum.

Senior property analyst for the company Jacques du Toit said that this is clear evidence that house price deflation in the country is "slowing down".

By the end of 2009 the year-on-year drop will be down to three per cent, he predicted, adding that next year will see prices rising again.

Mr du Toit also forecast that the South African economy as a whole will begin to grow again by the end of 2009.

Such figures may encourage those keen to buy property in the country.

Last week South African property investors were told that 2010 could be a very good year due to the focus the country will receive from hosting the football World Cup.

Former Manchester United goalkeeper and ambassador for the tournament Gary Bailey said the event will create "immense tourism opportunities". Something that may interest those considering investing in the holiday home rental sector.

South Africa 'suiting cash buyers'

Wed, 15 Jul 2009 00:00:00 GMT

Those with the cash to buy properties outright are increasingly dominating the South African market, it has been stated.

National manager of real estate data research provider Knowledge Factory Dieter Deppisch was quoted by the country's Sunday Times newspaper as saying: "Cash sales of full title and sectional title properties rose to one in three sales during the current year."

In contrast, he noted, only half of those applying for credit to buy homes are being successful.

Knowledge Factory's figures indicate that the bulk of cash purchases are for properties valued between ZAR500,000 and ZAR2 million (GBP37,100 and GBP149,000), while such purchasers are also picking up repossessed bargains.

Those with the funds to do so may wish to consider the country, as they may be able to find a number of bargains.

Despite being affected by the economic downturn, South Africa's average house price rose by 1.2 per cent in the year to June, according to the Oobarometer price index.

Johannesburg 'most affordable for expats'

Wed, 8 Jul 2009 00:00:00 GMT

Johannesburg has been named the most affordable city in the world for expatriates in a new survey.

Property investors may be interested to know that the South African destination was bottom of the Mercer 2009 Cost of Living list, as it was the least expensive city analysed.

Johannesburg overtook Asuncion in Paraguay as the cheapest place to live for expatriates, based of more than 200 criteria, including transport, food and housing.

The most expensive city in the world to move to was Tokyo, with the top ten dominated by Asian and European locations.

Mercer attributed movements in this year's Cost of Living survey - which covers 143 cities in six continets - to currency fluctuations caused by the economic downturn.

Tourism KwaZulu Natal recently claimed that the South African region has some of the "world's best beaches" and warm temperatures along its coastline, with Blue Flag status awarded to Hibberdene, Ramsgate, Margate and Marina/San Lameer beaches.

Survey shows increased affordability in South Africa

Thu, 7 May 2009 00:00:00 GMT

House prices are becoming more affordable in South Africa, according to a new survey carried out by the Absa Group.

The research revealed that house prices fell by 2.7 per cent last month in comparison to the same time the previous year, dropping the average house price to USD111,195 (GBP73,900).

Commenting on the research, Jacques du Toit, senior property analyst with Absa Home Loans, said: "This is regarded as an indication of the strain experienced in the market for larger and more expensive properties, with buyers focusing on smaller and more affordable homes."

However, despite the global recession, South Africa may receive a boost next year when it hosts the FIFA World Cup.

Tourists will flock to cities like Cape Town, Johannesburg, Durban and Pretoria and it will be hoped the World Cup can leave a positive legacy even after the final games are played.

Australian property 'popular with South African investors'

Thu, 7 Aug 2008 00:00:00 GMT

A growing number of overseas property investors in South Africa are showing interest in the Australian market, according to experts.

Estate agency Pam Golding Properties stated that the country is proving to be a popular choice with prospective purchasers of real estate in South Africa, reports Cape Argus.

Simon Gibb, spokesperson for the company, said much of the interest is coming from people who plan to buy for investment purposes.

However, he stated that some enquiries are also coming from people who wish to live in Australia on a permanent basis.

Mr Gibb believes the decline in the South African currency, as well as growing political uncertainty, has fuelled the recent interest in buying abroad.

He commented: "There is a trend that when our rand is trading less favourably against the major currencies, South Africans look to move money offshore.".

Earlier this week, Paul Arthur of The Emigration Group told the Daily Star that Australia has attracted 23,906 expats from the UK in the last year.

Thriving rental property market opportunities in south africa

Fri, 20 Jun 2008 00:00:00 GMT

High interest rates are pushing up the demand for rental properties in South Africa according to the head of a leading property group...

Tourism boosts South African investments

Fri, 16 May 2008 00:00:00 GMT

Owners of rental accommodation in South Africa are benefiting from a strong tourism sector, it has been reported.

According to Homes Overseas magazine, visitor numbers in the country went up by about nine per cent last year.

This was said to have resulted in the holiday industry generating nearly £25 billion for the national economy.

As a result, many buy-to-let investors will have seen increases in their occupancy rates and rental yields.

Furthermore, this trend of upwards growth is expected to continue in the run up to the football World Cup, which is being staged in the country for the first time in 2010.

South Africa's government recently revealed that it wants to attract ten million foreign visitors in two years time.

According to deputy tourism minister Rejoice Mabudafhasi, visitor numbers have gone up by 1,415 per cent in the last 14 years, reports AllAfrica.com.

South African office rents to grow

Tue, 26 Jun 2007 00:00:00 GMT

Rents within the South African office sector are set to see double digit growth this year, according to one financial firm.

In its latest annual report, Vukile claimed that sustained levels of economic growth in recent months and favourable conditions within the commercial property market could see rents increase significantly.

However, in a joint statement, the company's chairman Anton Botha and chief executive Gerhard van Zyl said that rising building costs could potentially have a negative impact upon the market.

"Significant infrastructural expenditure on such developments as the World Cup, the Gautrain and the Coega IDZ will place further pressure on building costs in the year ahead," they stated.

A-grade building costs are likely to require rents that are above the current average rate, they added.

Earlier in the month, Business Day reported that median price growth within the country's residential property market reached 10.9 per cent in May.