Exciting times for SA property market
Fasten your seatbelts for an exciting ride with the property sector during a year that is full of potential.
This is according to Excellerate Property Services CEO, Marna van der Walt, who says they’re seeing a lot of new dynamics coming into play this year, from Chinese Foreign Investment to the repurposing of city buildings around the country, and an opportunistic listed property sector taking its first steps into investment in new asset classes and new African countries.
One of the most exciting trends emerging in the property sector is the repurposing of CBD buildings and the re-energising taking place in some South African cities. These projects are going ahead in areas where there has been some urban decay, says Van der Walt.
Why investors opt for industrial property
Commercial property in South Africa continues to present lucrative investment opportunities, specifically within the industrial sector, and provides consistent returns for discerning investors.
A stronger shift towards warehousing and distribution facilities has changed the profile of industrial property over the last few years, and this change offers more rewarding opportunities.
This is according to Rod Harris from Sheldon Harris Properties, who says as South Africa’s economic output shifts and relies less on heavy manufacturing, the industrial sector has adapted, resulting in an increased demand for quality warehousing facilities.
The Investment Property Databank’s (IPD) South Africa Biannual Property Indicator, measured over the six months to 30 June 2014, indicates that the industrial sector outperformed the other sectors, with a 9.8% total return (5.1% income, 4.7% capital growth). With vacancies at a low level of 2.7%, it indicates a supply shortage in the sector.
SA affordable housing now more accessible
The bonded affordable housing space, which includes homes priced from R300 000 to R650 000 is set to grow considerably over the next few years, both in terms of buyer demand and investment potential according to Adrian Goslett, CEO of RE/MAX of Southern Africa, who is pleased to announce that RE/MAX will now be adding this sector of the market to their offering.
He says currently more than 50% of the registered properties at the deeds office are valued at less than R500 000, and these kinds of properties can offer investors impressive yields.
“However, it is the fact that homes will be more accessible financially to those who need them that will have the most impact on the market. South Africans have a deep seated desire to own property,” says Goslett.
RICS global summit 2015 to be held in SA
Bringing together leading property practitioners, investors and academic experts from around the world and across the continent, the Royal Institution of Chartered Surveyors (RICS) has selected Africa, and more specifically South Africa, as the venue to hold its 2015 Summit. To be held in Johannesburg on 25 March, this is only the fourth time RICS has held the global summit outside the UK, it has previously been held in China, India and Brazil.
RICS is a global professional body that promotes and enforces the highest qualifications and standards in the areas of land, real estate, construction and infrastructure. As a public benefit organisation, it operates in all the world’s major financial hubs in delivering international standards and policy influence.
The Sectional Titles Act and trustees
At the last free trustee workshop for trustees of sectional title schemes, held by property management company IHFM, interesting aspects of sectional title management came to light according to Michael Bauer, general manager of IHFM, who says one of these aspects is that many trustees are not familiar enough with the provisions of the Sectional Titles Act, Amendment of the ST Act or the Prescribed Management Rules.
All trustees of bodies corporate should be given these when they are elected so that they have an understanding of their roles, as well as the way the scheme should be run.
Bauer says at the most recent workshop, these were dealt with at length, and the most pertinent were pointed out.
Avoid these top 5 home selling mistakes
When selling your home, it’s easy to get stuck in a vacuum. You have a certain idea of what the market should pay for your home and what may or may not be an issue. After all, you know your home, right? Your home has x, y and z. The location can’t be beat. It’s just around the corner from ‘insert fabulous restaurant’, park, coffee shop, school, and so forth. However, buyers and agents coming through your home might not see the same picture.
Elaine Chetty from Seeff Richards Bay shares ways to avoid these potential home seller pitfalls:
1. Overpricing your home
If your home is overpriced, two things won’t happen: showings or offers. The price is what sets the tone for showings. It is the nonverbal message that either invites or discourages activity.
If your home is priced too high, buyers that can afford it may be interested in something else, as they can go higher in price range, while the audience for whom it was actually intended price-wise is usually shut out.