Real Estate & Property Investment News in South Africa from Propertyshowrooms.com

'Positive outlook' for South Africa commercial property

Mon, 6 Feb 2012 00:00:00 GMT

There is reason to be optimistic about the future performance of commercial real estate assets in South Africa.

This is according to Malcolm Horne, chief executive officer of Broll Property Group, who is confident demand for properties to rent in the nation will pick up, thereby reducing the amount of vacant space on the market.

A yearly report published by the company predicted income from commercial properties in South Africa will rise, while capitalisation rates will become steadier.

Speaking to SA Commercial Prop News, he commented: "The South African property fundamentals remain strong, landlords and tenants have become more educated about the costs involved and the pressure is on all to find effective means to reduce operating costs."

Last month, head of capital markets at Jones Lang LaSalle South Africa Andrew Bradford asserted investors in the nation are better off purchasing existing buildings, rather than ploughing their money into new developments.

He explained expenses associated with established assets are usually considerably lower than with new builds, while there is also less hassle and more predictability over a deal's timeline when opting for finished projects.

Selling distressed property 'important for South African market recovery'

Tue, 31 Jan 2012 00:00:00 GMT

Quickening the process of selling distressed real estate assets in South Africa is vital if the country's property market is to recover.

This is according to SA Commercial Prop News, which outlined several areas that need to improve before the real estate sector in the nation can get better.

Among them are employment growth, more support from lenders to borrowers who are struggling to pay their mortgages and an upturn in the global economy.

Commenting on the state of the South African residential real estate market, chief executive officer of Auction Alliance Rael Levitt said: "There's likely to be more pain before there are any real gains for the sector, primarily because of the giant inventory of homes on the market."

Earlier this month, chief executive officer of ooba Saul Geffen stated that it is a buyer's market in South Africa at the moment, partly because of the low interest rates in the nation.

South Africa property prices up

Tue, 24 Jan 2012 00:00:00 GMT

The value of homes in South Africa climbed in December compared to a year earlier, it has been revealed.

Figures from the latest oobarometer - a measure of the performance of the South African property market by mortgage originator ooba - showed house prices increased by 6.2 per cent year-on-year last month.

A rise of 3.6 per cent was also recorded between November and December in 2011, the firm noted.

However, chief executive officer of the organisation Saul Geffen does not expect there to be significant increases in house prices this year.

"With the interest rate anticipated to remain low in 2012, and with property prices remaining depressed, the current market represents a favourable environment for buyers," he stated.

Earlier this month, home loan strategist for First National Bank John Loos predicted the residential real estate sector in South Africa would remain flat over the next 12 months.

He cited "strong supply relative to demand and a mediocre economic performance" as the main factors that are likely to hold the market back.

South African property market 'slowing down'

Wed, 11 Jan 2012 00:00:00 GMT

The value of real estate in South Africa is likely to fall by three per cent in real terms over the course of 2012, it has been predicted.

John Loos, household and property sector strategist at First National Bank (FNB), made the assertion after the FNB House Price Index revealed a "flattening out" of the residential market during 2011.

He explained the three per cent decline is based on consumer price inflation averaging at five per cent over the coming 12 months.

Mr Loos added forecasts of lower global economic growth than previously anticipated, as well as the expectation of only minimal interest rate cuts in South Africa in 2012, have weighed heavily on sentiment in the housing market.

In an interview with The New Age, property analyst at Absa Jacques du Toit agreed that the South African real estate sector will experience a difficult year.

He noted many consumers have been struggling with inflation, which will in turn have an impact on the property market.

South Africa property market 'to improve in 2012'

Mon, 9 Jan 2012 00:00:00 GMT

The property market in South Africa could be set for positive growth this year, an expert has said.

Speaking to property24, managing director of Anne Porter Knight Frank Lanice Steward said she had already seen increased interest in South African real estate from those attending events at show houses compared with 2011.

"The attendances at show houses are three or four times higher than the first half of last year," she remarked, adding that agreed sale prices are now matching up more with list prices, another indicator that the market is beginning to get back on an even keel.

Chairman of property real estate firm RE/MAX's Southern Africa division, Peter Gilmour, commented last year that the country is unlikely to see lows or highs in 2012 in terms of its property market, which he expects to continue along its current steady course.

South African bond originator ooba also recently highlighted that property prices in the nation showed year-on-year growth in November 2011 for the first time since August of the same year.

South African property prices up slightly

Thu, 22 Dec 2011 00:00:00 GMT

The value of homes in South Africa has risen marginally for the first time in three months, new figures show.

According to a report released by bond originator ooba, the average cost of buying a property in South Africa climbed by 2.4 per cent year-on-year during November.

A monthly rise of two per cent was also recorded last month, the organisation revealed.

Meanwhile, the number of applications for mortgages increased sharply in November, compared to the same time in 2010, ooba noted.

Chief executive officer of the firm Saul Geffen is upbeat about the future of the real estate sector in South Africa.

"The record-low interest rates, coupled with subdued property price inflation, increased bank approval rates and lower deposit requirements and increased bond sizes, will continue to positively influence the property market," he asserted.

Earlier this month, co-founder of Spacesa Sue McDermott noted that Hout Bay on the coast near Cape Town is a popular location for property investment.

She stated this location offers more value than other coastal sites nearby, enhancing its appeal among buyers seeking a home in the area.

Conveyancing process 'very different in South Africa'

Mon, 19 Dec 2011 00:00:00 GMT

Anyone who is considering buying property in South Africa should be aware that the legal processes associated with such a transaction are very different to the UK.

This is the opinion of Sue McDermott, co-founder of Spacesa.com, who explained the South African conveyancing system tends to provide more certainty for buyers.

She noted there is little chance of a purchaser being gazumped in the country, because the timeline for closing a sale is "much more fixed" than in the UK.

"You have one lawyer, who represents both parties, which sounds like a huge conflict of interests for anybody coming in [from] the UK, but in fact it works really well," Ms McDermott stated.

Last month, Berry Everitt, managing director of the Chas Everitt International Property Group, claimed an increasing number of foreign investors are targeting the nation's real estate market.

He highlighted South Africa's stable financial sector and economic growth as two reasons why more overseas buyers are interested in owning property here.

Hout Bay 'a hotspot for property investment in South Africa'

Tue, 13 Dec 2011 00:00:00 GMT

Many property investors are interested in owning an apartment or house in Hout Bay, just outside Cape Town, it has been revealed.

Co-founder of Spacesa Sue McDermott explained that the beach-front area is particularly popular due to the wide range of different homes for sale here.

She noted that it offers "a lot more value" due to its location near Camps Bay, which is not as favoured by investors due to the higher house prices and windy conditions it often experiences.

"If people just want to dip their toe in the water with an apartment and spend less money, there is a place called Sea Point which is a bit nearer the town," Ms McDermott added.

Last month, managing director of Rawson Properties Tony Clarke commented in an article for SA Commercial Prop News that the South African real estate market has not been hit as hard by the global economic downturn as other nations.

He highlighted rising house prices across the country as a positive sign for the future of the sector.

"Good value" property available in South Africa

Wed, 7 Dec 2011 00:00:00 GMT

It is still possible for investors to find South African property that represents "good value", it has been claimed.

Co-founder of property search and relocation firm Spacesa Sue McDermott explained that homes overlooking the sea can be purchased in the nation "for a fraction of the price that you would pay in most European countries".

She noted that it can cost as little as £100,000 to buy an apartment on the coast.

Ms McDermott also highlighted the group of real estate owners known as swallows, "who come and spend the British winter in South Africa - so they have summer all year round".

This lifestyle choice is one of the main attractions of buying a property in the country and spending time there, she added.

According to the latest house price data published by Knight Frank, South Africa saw its residential real estate values climb by 1.1 per cent during the third quarter of 2011, compared to the previous three-month period.

The firm also highlighted that, since the third quarter of 2010, property prices in the country have risen by 5.5 per cent.

Positive outlook for South African property sector

Wed, 30 Nov 2011 00:00:00 GMT

Despite still facing challenges, the property market in South Africa is performing better than some of its counterparts elsewhere in the world.

This is the opinion of Tony Clarke, managing director of Rawson Properties, who recently attended the National Association of Realtors (NAR) annual conference in the US.

In an article for SA Commercial Prop News, he stated that after attending the event, it has "become clear to me that the South African real estate sector is coming through bad times less damaged than that of the USA".

Mr Clarke cited several challenges that lie ahead for the property industry in his nation, including a loss of confidence in the market and lower mortgage approval rates.

However, he noted in the publication that house prices in South Africa are rising at a level that almost matches inflation, which paints a more positive picture for the country going forward.

Earlier this month, Berry Everitt, managing director of the Chas Everitt International Property Group, highlighted the influx of foreign buyers in South Africa's real estate sector.

He commented that economic growth and a stable banking system have helped international investors view the nation as a safe haven and therefore a good location to buy a home.

Foreign investors 'returning to South African property market'

Tue, 8 Nov 2011 00:00:00 GMT

International investors are increasingly considering the merits of buying a property in South Africa, it has been claimed.

Berry Everitt, managing director of international property group Chas Everitt, explained that a favourable exchange rate between the South African rand and major currencies such as the euro, US dollar and sterling has helped drive interest.

"Since May, the value of the rand has shown a sharp decline that was bound to catch the attention of overseas investors, especially in light of the economic distress in Europe," he stated.

Mr Everitt added that around 30 per cent of the enquiries received by his firm now come from foreign investors, with many people from the UK, China, Germany and the US contacting the company.

In terms of the assets being targeted, holiday homes and buy-to-let properties are the most popular among overseas buyers in South Africa, he noted.

However, the recent FNB Estate Agent Survey for the third quarter of 2011 found that domestic investors are less enamoured by the prospects offered by buy-to-let housing in the country.

According to the organisation, just eight per cent of transactions were made in this sector during this period, with more people concentrating on purchasing a primary residence.

Rental growth slows for South Africa commercial property

Fri, 14 Oct 2011 00:00:00 GMT

Many fund managers in South Africa are struggling at present because tenants are able to negotiate rental rates down, it has been claimed.

Paul Duncan, portfolio manager of Catalyst Fund Managers, told Business Day that the South African commercial property market is likely to run into difficulties over the coming year to 18 months.

He explained that many investors have seen vacancy levels across their portfolios rise, which has allowed tenants to renegotiate contracts to pay less rent.

Mr Duncan added that although vacancy rates appear to have "troughed", there is still little new demand to help buoy the sector.

"As a result, the positive effect that vacancy reduction has on distribution growth is only expected to filter through beyond the 12 to 18-month time horizon," he stated.

In September, the SAPOA/IPD South Africa biannual property indicator revealed that returns generated by commercial property in the country "stagnated" between January and June of this year.

The organisation recorded a total return from real estate rents of 4.3 per cent, while there was no capital appreciation noted in the survey.

'A buyers' market' for South African property

Wed, 21 Sep 2011 00:00:00 GMT

Now is a good time to invest in property in South Africa, particularly along the Garden Route, it has been claimed.

Speaking to SAcommercialpropNews.co.za, Rael Levitt from Auction Alliance explained that resorts have experienced the biggest price drops in recent months, while regions just outside large cities have also seen property values decline.

He highlighted the Garden Route as one of the areas that has seen prices plummet, due to the high level of development over the past five to seven years.

Consequently, there is more supply than demand for homes in this part of the country, Mr Levitt stated.

"A burgeoning trend within the sector is that it is a real buyers' market right now," he commented, adding that it offers a "historic opportunity to get into the market at significantly reduced prices".

South African mortgage provided ABSA noted in its most recent Housing Review that property prices in the nation declined in real terms during the second quarter, compared to the same three-month period in 2010.

South Africa's Umhlanga Rocks may attract investors

Mon, 22 Aug 2011 00:00:00 GMT

Investors intending to plough some money into South African real estate may want to consider the Umhlanga Rocks area after one local expert pointed out the advantages of owning property in this region.

Speaking to SAcommercialpropNews, Pam Golding Properties area principal Elwyn Schenk explained that a lack of supply in the market has helped prices to rise.

He said that housing on the Umhlanga beachfront "continues to be highly sought after, with little new stock available".

Mr Schenk told the publication that there are some new projects planned for the district, but that these have timelines of between three and five years.

However, he stressed that these developments are likely to benefit the area's real estate sector, commenting: "Existing stock should, even with modest growth, start to see a strong uplift in prices."

Umhlanga may also appeal to investors due to its proximity to Durban and the good transport links that it enjoys.

A casino, shopping centre, numerous golf courses and Isimangaliso Wetland Park - a UNESCO World Heritage site - are just some of the attractions that the coastal region boasts.

Fewer foreigners buying South African property

Fri, 5 Aug 2011 00:00:00 GMT

The number of foreign nationals investing in a property in South Africa (SA) has fallen, the latest figures from the country's First National Bank (FNB) show.

According to the FNB Estate Agent Survey for the second quarter of the year, the percentage of real estate transactions carried out by those from overseas was just three per cent of total residential buying.

This is compared to a high of seven per cent that was experienced back in 2005, FNB home loans strategist John Loos commented.

However, Mr Loos stated: "We don't believe that poor sentiment towards SA is currently a key issue. Rather, weak foreign buying is more likely related to [...] a deterioration in sentiment towards the property asset class globally."

Last month, the FNB published its report into the state of the SA rental market in the first half of 2011 and noted that the sector has marginally improved since 2010.

The organisation added that there is likely to be greater demand for rental properties among homeowners forced to sell due to financial pressures over the coming months.

South African real estate market 'expected to improve'

Mon, 25 Jul 2011 00:00:00 GMT

Activity in the South African residential property sector is expected to pick up, according to one expert.

In an article for Real Estate Web, Andrew Golding, chief executive of the Pam Golding Property Group, stated that the outlook for the coming six to nine months is "cautiously optimistic".

"While the housing market has plateaued and is to some extent in the doldrums, recent activity indicates an upward trend both in regard to the number of units sold and in terms of pricing," he commented.

Mr Golding added that this week's decision by the country's Monetary Policy Commission (MPC) to leave the repo rate unchanged at 5.5 per cent was a welcome one for the property sector.

The South African Central Bank last cut its rates in November 2010, bringing them to this historic low, which it has since maintained.

MPC governor Gill Marcus described the nation's domestic recovery as "fragile", adding that problems in the eurozone economies could pose a further risk to any economic growth prospects.

South African property prices up in June

Tue, 12 Jul 2011 00:00:00 GMT

Prices for properties in South Africa saw an annual rise in June, according to new figures.

Statistics from Standard Bank show house values increased by three per cent compared with the same month in 2010, I-Net Bridge reports.

Property prices had risen by 3.3 per cent in May, but month-on-month there was no uplift in June - despite the fact that interest rates have been low for some time.

Sibusiso Gumbi, analyst at Standard Bank, said the property market is seeing slow growth partly as a result of restricted credit, low employment and increasing energy and food costs.

However, the expert noted that the South African economy as a whole is starting to experience positive movements in indicators such as consumer incomes and spending.

Investors may also be able to benefit from rising prices in the commercial real estate sector this year.

The most recent SAPOA/IPD South Africa Property Index revealed that total returns from this type of investment stood at 13.3 per cent in 2010, up from 8.8 per cent in the previous year.

IPD South Africa managing director Stan Garrun said: "The investment property market is undergoing a sustainable, though drawn out, recovery."

Cape Town is a ‘buyers’ market’

Fri, 13 May 2011 00:00:00 GMT

Demand for property in South Africa could be set to rise after it was claimed that Cape Town is currently a “classic buyers’ market”.

This is according to the latest report from Cluttons, which noted that homes take an average of 19 weeks to sell, with only 15 per cent of vendors able to achieve their original asking price.

The news is likely to be welcomed by foreign investors in the country, with them currently making up seven per cent of the total sales.

“British buyers can benefit from substantial discounts by shopping around. It is important to look for quality and prime locations,” Jacques Ellis, managing director, Cluttons South Africa, confirmed.

The prime areas in Cape Town are the Atlantic Seaboard and the Constantia Valley.

Mr Ellies added: “The bottom of the market has been reached and the middle and luxury end of the market offers substantial opportunity for price increases over the next few years.”

Prices continue to climb in South Africa

Wed, 20 Apr 2011 00:00:00 GMT

South African property prices saw positive value growth during March, the latest figures from ooba have revealed.

The country's leading bond originator reported that the price of residential property climbed by 1.1 per cent over the course of the month, compared to the previous year.

It means that the average cost of a new home in South Africa now stands at R860,492, up from R850,864 a year previous.

According to Saul Geffen, chief executive officer of ooba, the results are both positive and surprising.

"Given the high levels of growth experienced in the first half of last year and the negative growth recorded for the last consecutive four months, we did not expect prices to return to positive territory so quickly.

"We will have to wait until next month to see whether this is an anomaly or a return to positive price growth."

Mr Geffen added that he expected the positive growth to continue with all the necessary components needed for market growth in place.

Overseas investors 'less active' in South Africa

Fri, 18 Feb 2011 00:00:00 GMT

The number of foreign investors active in the South African property market has fallen compared to last year, according to the fourth-quarter 2010 FNB Estate Agent Survey.

It follows the release of the January 2011 FNB House Price Index report which revealed that there has been an average decline in home values of 1.3 per cent over the course of the month.

Overseas investors made up just 3.5 per cent of the overall Cape Town real estate market during the final quarter of 2010 and 4.75 per cent of the market over the year as a whole.

This is significantly down on the estimated 10.75 per cent average share of buyers for 2008 and 7.75 per cent in 2009.

"The absolute amount of foreign buyers may not have declined as much as the percentages suggest, because the market was thinner in 2008 than in 2010," the survey said.

"But that magnitude of decline in percentage would suggest some sort of absolute decline in foreign buying in our region."

South African property prices set for further falls in 2011

Thu, 17 Feb 2011 00:00:00 GMT

Residential property prices in South Africa are expected to fall this year largely as a result of weak demand and a struggling economy.

According to the January 2011 FNB House Price Index report, there was an average decline of 1.3 per cent over the month, with average prices now standing at R568,000 (£48,500).

It is likely that the news will be welcomed by those hoping to buy property in South Africa, with the average price set to decline even further over the coming months.

"The slowing year-on-year growth rate in the average house price remains largely driven by weak demand growth, which in turn is the result of, firstly, a weak economy and its constraining effect on household income growth and, secondly, the high levels of household debt relative to disposable income," the report said,

In addition, strong residential supply, overhang from the building boom of a few years ago as well as high levels of financial pressure are also playing a role in the price falls.

Confidence returning to South African market

Wed, 5 Jan 2011 00:00:00 GMT

Property investors looking to purchase real estate in South Africa will be pleased to learn that confidence is beginning to return to the market.

Analysts have explained that the country's inclusion to this year's BRIC group of major emerging markets is set to boost the level of foreign interest.

South Africa's induction into the group, which currently includes Brazil, Russia, India and China, legitimises it as a future global power.

Indeed, according to the latest Sage Property Report, confidence in the South African property market is returning with an 8.3 per cent year-on-year growth rate in average housing prices.

"South Africa's inclusion into the circle of BRIC countries is only going to strengthen the attraction for investors," explained David Higginson, co-founder of Lance Market Management.

"[Volatility of the rand] is perhaps the biggest concern for a foreign investor. Yet, the rand has been one of the best performing currencies in the past three or four years and it has been pretty stable

South African property still popular with foreign buyers

Mon, 8 Nov 2010 00:00:00 GMT

South African real estate agents are confident that the property market in the country will remain popular, even though the football World Cup is over.

According to Adrian Goslett, regional director and chief executive officer of RE/MAX Southern Africa, the hosting of the tournament in the country has done much to raise its profile and improve perceptions held by potential overseas buyers.

Mr Goslett explained that this had translated into an increase in interest in owning property in South Africa.

He added: "We think it's fairly early to gauge the level of foreign interest in our property portfolio after the World Cup.

"We are hopeful however that in the next two to three years, foreign buyers particularly from the UK, Europe and the US will start making some moves towards our shores."

Elsewhere, Dr Andrew Golding, chief executive officer of the Pam Golding Property Group, is much more optimistic stating that overseas interest had improved.

Distressed sales leading the way in South Africa

Thu, 30 Sep 2010 00:00:00 GMT

Investors looking for property in South Africa should act now if they want to get hold of a bargain, it has been claimed.

Personal Finance South Africa has highlighted the fact that a record number of homeowners are now opting for distressed sales or putting their homes on the market through "sales in execution".

Anthony Miller, managing director of property evaluation company Lightstone, told the news provider that distressed-sale properties are being sold at a discount of between 30 per cent and 50 per cent below market value.

"These are great times if you are looking for bargains in the property market," Mr Miller added.

"Annual house prices in the affordable market grew 14 per cent year-on-year, which is above the seven per cent to nine per cent growth the other market segments saw in the last year."

The news may interest individuals looking at province of the Western Cape property, with the area having recently held a number of World Cup matches.

World Cup boosts interest in South African property

Tue, 21 Sep 2010 00:00:00 GMT

The recent football World Cup has helped to boost confidence in the South African real estate market, people interested in province of the Western Cape property will be pleased to hear.

In particular, prices in the Cape region - where many of the games were held - have remained stable, despite the falls witnessed in other parts of the country.

According to Audrey Matthews, director of Ronnie Matthews Estates, the increased interest in property in the region is a direct result of the attention it received during the football tournament.

The expert added that although the property market can be described as buoyant on the coastline, he has witnessed a much more cautious and realistic outlook from potential buyers.

"Buyers are approaching the investment in this kind of property in a scientific, rather than emotional way. They look at investment, yields and weigh it up against alternative investment avenues and then they buy," she explained.

Ms Mathews also explained that slow but steady economic expansion in South Africa is also fuelling a strong demand for more holiday properties.

South African property prices continuing to rise

Thu, 2 Sep 2010 00:00:00 GMT

Mid-range South African property prices continued to rise on a year-on-year basis in July, increasing by 7.6 per cent, according to figures from the Absa House Price Index.

However, the rate of growth was at a slower pace than in previous months, suggesting that prices may be reaching their peak after a 7.7 per cent rise in June.

Year-on-year growth in value for large properties also rose by 4.7 per cent, following growth of 5.5 per cent in June.

According to the bank, house price growth in South Africa is likely to slow in the later months of the year as interest rates are expected to stay static.

"Year-on-year house price growth is forecast to slow down further in the months towards year-end, largely driven by the base effect of a recovery in property prices in the second half of 2009. Real house price growth in the rest of the year will be determined by nominal price trends as well as the course of consumer price inflation," it stated.

In June, data from the Lew Geffen Sotheby's International Realty website highlighted that British and European property investors' interest in South Africa remains strong, with traffic from UK residents to the site increasing 23 per cent.

Celebrities targeting South African property investment

Tue, 29 Jun 2010 00:00:00 GMT

The fact that South Africa is currently hosting the football World Cup has led to many celebrities visiting the country and some showing interest in making a property investment.

According to the Times Live, some estate agents in the country have been visited by famous names in order to take a look at what properties are for sale in South Africa.

Area manager Ling Dobson highlighted that coastal properties were proving particularly popular, with guests from the UK, US, France and Italy among those seeking luxury accommodation.

She told the news provider: "Even just prior to the World Cup we sold a property in Knysna to a French buyer."

Ms Dobson added that an appointment has also been scheduled with a wealthy Italian and his family in relation to viewing a number of properties in the country's Eastern Cape.

The most recent real estate performance index by IPD/Sapoa revealed that investors in the South African property market could expect an average total return of 8.7 per cent.

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 African property market hopes for a World Cup boost

Thu, 17 Jun 2010 00:00:00 GMT

South African-based real estate agents are hoping to score with foreign property investors as a result of the football World Cup, it has been reported.

According to Overseas Property Professional, many agents are looking to attract a new range of buyers to the sector when they visit the country over the course of the tournament.

Laurie Wener, managing director of the Western Cape region for Pam Golding Properties, told the news provider that the event was an opportunity to showcase South African property.

The real estate expert explained that this was a once in a lifetime chance to "present our country, its tourism attractions and its fantastic residential property opportunities to a global audience and on an unprecedented, mammoth scale".

Province of the Western Cape property may prove to be a popular choice among potential investors, with the region hosting five first-round matches, one second round, one quarter-final and one semi-final during the tournament.

The 2010 World Cup kicked off on June 11th and finishes on July 11th.

South Africa posts good investment returns

Tue, 27 Apr 2010 00:00:00 GMT

Individuals with a property interest in the South African market will be pleased by news that despite the economic crisis real estate in the country offered greater returns than in the US or UK last year.

The most recent real estate performance index by IPD/Sapoa demonstrated that potential investors were able to benefit from an average total return of 8.7 per cent from South African property.

This can be compared to 3.5 per cent from the UK and a loss of 17.5 per cent in the US.

According to Mohamed Kalla, a property analyst at Barnard Jacobs Mellet, the resilience of the country's property market can be put down to the strength of its banks.

"South Africa's credit markets were more sheltered by the global banking crisis when compared with other countries," he told Property Abroad.

"This, coupled with more prudent gearing levels, meant that property funds were not forced to sell assets at rock-bottom prices to avoid loan-to-value breaches."

Investors looking to rent out property in the country could benefit from the forthcoming football World Cup, which is being held there from June 11th until July 11th.

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 African property tipped for strong 2010

Thu, 7 Jan 2010 00:00:00 GMT

The South African property market will enjoy a good year, it has been predicted.

In a blog for Real Estate Web, Samuel Seef of real estate agency Seef Associates said that the market has been depressed recently because of the recession and the credit crunch, with banks demanding larger deposits.

However, he commented, there is reason for optimism as the recession ends and the effects of lower interest rates are expected to filter through.

Mr Seef also predicted that hosting football's World Cup will help by focusing attention on the nation, although the main impact this will have in terms of raised sales will be felt more fully in 2011.

"It [the World Cup] will certainly open up the country to potential investors and buyers who cannot help but recognise that there is significant value in the cosmopolitan lifestyle we offer," Mr Seef remarked.

The attention of UK investors may be focused on Cape Town, Port Elizabeth and Rustenberg, as these are the cities where the England team will play its group matches.

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.

Eyes of world on South Africa

Sat, 5 Dec 2009 00:00:00 GMT

World attention will be focused on South Africa as the draw for the 2010 World Cup takes place this evening.

The schedule for the 32-nation tournament will be decided today (December 4th) in Cape Town, something that could increase the level of attention received by the city, which is based around the coastline and low-lying areas below Table Mountain.

Such a situation might particularly entice property buyers who had not previously thought of investing in South African real estate.

Cape Town itself will be one of the host cities for the event and may be a good location for tourist rental - both during the tournament and afterwards - due to the attention it will receive from South Africa's time in the spotlight.

The Daily Telegraph guide to the venues noted tourist attractions include surfing at Llandudno Beach, a cable car up Table Mountain, many museums and colonial buildings, plus a chance to catch a boat to Robben Island, where Nelson Mandela was imprisoned.

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.

South Africa holds interest rates

Thu, 19 Nov 2009 00:00:00 GMT

There will be no interest rate rise in South Africa this month, it has been announced.

In its monthly meeting, the country's Monetary Policy Committee (MPC) said it was maintaining the repurchase rate at seven per cent, something that may be good news for those keen on buying property in the country.

Such a move comes as the inflation rate fell from 6.4 per cent in August to 6.1 per cent in September.

The MPC added that the projection for inflation is that it will go on dropping, with this falling within its target range in the opening quarter of 2010.

It said: "There are no major demand side pressures on inflation and the assessment of the committee is that there are no significant upside risks to the inflation outlook emanating from this source."

Such a comment would suggest that the prospect for further rate rises is small and there may instead be scope for cuts.

South Africa is a particularly good golf property destination with its 138 international standard courses, the Daily Mail reported earlier this month.

South Africa 'makes good golf destination'

Wed, 11 Nov 2009 00:00:00 GMT

Those keen on buying golf property overseas may find South Africa to be one of the best places to go, it has been suggested.

A Daily Mail feature on this kind of real estate noted that the southern hemisphere nation is a popular winter sun destination for Britons.

It said the qualities of the country as a golfing venue include having 138 courses of international standard, with one of the best being the Durban Country Club in sub-tropical Kwazulu-Natal, which frequently hosts the South African Open.

Pezula in the southern Cape was noted as a favourite with Britons, due to having many homes near the greens and a nature reserve close by.

South Africa's property market is bouncing back after the recession, real estate magazine Property Abroad claimed recently.

It said transactions in September and October were 40 per cent higher than in the previous two months, a jump attributed to the reappearance of 100 per cent mortgages.

South African property 'bouncing back'

Wed, 4 Nov 2009 00:00:00 GMT

The South African property market is bouncing back from a spell in the doldrums, it has been stated.

Overseas real estate magazine Property Abroad has said the country has seen a 40 per cent increase in sales in the past two months, compared to the previous equivalent period.

It suggested that the return of a widespread provision of 100 per cent mortgages to the market is helping this recovery to take place and said that Cape Town could be a particular beneficiary of the rebound.

Both the Cape and the country as a whole could gain from the attention focused on it by next year's World Cup, the portal suggested, labelling South Africa as "very much the world's underestimated emerging market".

The country can offer some very favourable upmarket homes, chairman of Sotheby's International Realty SA Lew Geffen told the Times Online last month.

He said that for the price of a one-bedroom apartment in London, a buyer could pick up a three-bed beachfront property in the Sea Point area of Cape Town.

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.

South Africa 'set for major investment'

Fri, 16 Oct 2009 00:00:00 GMT

South Africa is set for major infrastructure investment from its government, it has been reported.

The Daily Telegraph noted that a USD90 billion (GBP55 million) state programme will include investment in areas such as power, health and homes, with British firms likely to be heavily involved in the sustainable housing and renewable energy sectors.

Such a development may also help those looking to buy property in South Africa, as a boost to the economy resulting from such work may feed into the real estate sector.

Like most countries, South Africa has seen its property prices drop during the world economic downturn, but in an article written for South African property site Real Estate Web, chief executive of Durr Estates Julian Reynolds said this will soon change.

Mr Reynolds tipped Cape Town to see the largest price rises in the near future as a "rebound" from seeing the greatest falls in value of any metropolitan area in the country.

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 Africa property decline 'easing'

Sat, 12 Sep 2009 00:00:00 GMT

South African property prices declined in the second quarter of 2009, but by less than in the previous three months, new figures have indicated.

According to the Knight Frank Global House Price Index, prices dipped by 1.4 per cent in the second quarter.

However, this was less than the fall of 1.8 per cent in the three months to March, which may have marked the peak of the decline after a 0.7 per cent dip in the last quarter of 2008.

Such findings might suggest the bottom of the market in South Africa has been nearing over the summer.

And prices may now be rising there, with the latest First National Bank house price index recording a 1.8 per cent increase in July.

Thousands of Britons may become interested in buying in South Africa after visiting the country during the next year for major sporting events.

The England cricket team tours there this winter, while the football squad guaranteed their qualification for next year's World Cup by beating Croatia this week.

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 'set for major tourist boom'

Fri, 28 Aug 2009 00:00:00 GMT

South Africa is on course to secure a major tourist legacy by hosting the football World Cup next year, it has been stated.

Former Manchester United goalkeeper Gary Bailey told an event for property investors in Port Elizabeth that there will be 220,000 visitors during the tournament and also a major legacy.

He stated: "Even after the tournament there will still be benefits. It will allow us to brand the country and will bring immense tourism opportunities."

This will enable more people to realise that South Africa is "one of the most beautiful counties in the world," Mr Bailey added, stating only an event as large as the World Cup or the Olympic Games could achieve this profile.

Overseas property buyers may consider the event a good reason to invest in tourist property to capitalise on the potential increase in visitor numbers.

As well as Port Elizabeth, host cities for the tournament that may enjoy a particularly strong focus include Cape Town, Durban, Pretoria, Bloemfontein and Johannesburg.

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.

South Africa property prices increasing, study shows

Sat, 11 Jul 2009 00:00:00 GMT

Year-on-year prices in South Africa have shown a nominal increase of 1.2 per cent, according to research.

Ooba, a mortgage information provider, found that the average price of a property in the country rose from ZAR774,449 (£58,228) to ZAR784,427 between June 2008 and June 2009.

A hike in the month-on-month purchase prices was also evident, with a nominal increase of 1.4 per cent from R773,440 in May.

Chief executive of the company Saul Geffen said the change in cost does not necessarily mean the downturn is over as other factors have to be considered.

He remarked: "This may be attributed to a shift to higher priced properties in June, given affluent homebuyers' ability to better adapt to strict bank lending practices."

Earlier this week, Johannesburg was revealed as the most cost-effective place to live for expatriates when it replaced Asuncion in Paraguay at the bottom of the Mercer 2009 Cost of Living list.

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.

Fractional deal in South Africa 'offering more'

Mon, 25 May 2009 00:00:00 GMT

Those who want more from a property overseas are able to get it through deals such as one being offered in South Africa, it has been suggested.

South African company Zorgvliet is looking to provide more through the sale of a series of properties at Dinkweng in the wilderness area of the Waterberg Biosphere, the Independent reports.

The deal includes access to the firm's 16,000-acre game reserve, giving investors a chance to see animals such as elephants and rhinos, as well as being involved in conservation.

Spokesman for the firm Mac Van Der Merwe told the paper: "Today's buyers are more sophisticated and have higher expectations. They want to see and do more, they no longer want standard holiday property."

The homes are being sold on a fractional basis for GBP 10,000 in perpetuity, with one week of use per year.

South African property is more affordable due to falls in house prices over the past year, an Absa Group survey showed earlier this month.

It revealed a 2.7 per cent year-on-year fall between April 2008 and the same month this year.

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.