Web Bytes

Web Bytes 084

SA Property Barons on the rise
Fin24.co.za - South Africa
It's no secret that South Africa's five-year housing boom has seen a significant increase in property ownership, particularly among first-time buyers. But the rate at which South Africans have been accumulating second, third and fourth properties has also accelerated markedly.

Latest Standard Bank figures show that close to 12% (nearly one in every eight) of all residential property sales recorded at the Deeds Office are going to buyers who already own at least one property. That ratio has tripled over the past five years, up from 4% in 2000, and would typically include buy-to-let properties or holiday homes.

Standard Bank senior economist Elna Moolman says that investor participation in the housing market could be even higher if one strips out properties bought by the same people but registered in the name of different entities, such as companies or trusts.

Standard Chartered to grow share of home loan market
Business Day - South Africa
Standard Chartered planned to grow its share of the South African home loans market to as much as 5% as it focused on mortgage lending and personal loans to the retail banking market, it said yesterday.

Chris Low, CEO of Standard Chartered SA, said the bank remained committed to the consumer banking segment, despite closing online banking division 20twenty this year.

"Initially we're going to focus on mortgages and personal loans and from there develop the right strategy," he said.
Business Day

Property company faces court action
The Mercury - South Africa
A property management company contracted by South Africa's major banks to assist financially ailing sectional title buildings by training body corporate trustees is facing allegations that it is plunging the buildings into potential bankruptcy.

The allegations are contained in court applications before the Durban High Court in which a group of owners of flats in the St Moritz building are doing battle with Voyager Property Management Services over an estimated R3.6 million loan that the company gave the body corporate.

The flat owners say the loan was approved without their knowledge or consent.

And they question how such a large loan could have been given when the levy income does not even cover the 21% daily compound interest the company charges on it.
The Mercury

House-price growth at its lowest in four years
Business Day - South Africa
House prices increased at their slowest rate in more than four years last month as demand continued to taper off after a three-year boom that has made houses unaffordable for many buyers, according to the latest Absa house price index.

Analysts said the slowdown in house-price inflation was in line with expectations, and that the rate of increase could rise again as early as next year if the economy continued to expand at current rates.

Absa senior economist Jacques du Toit said the latest index showed nominal growth of 13,7% year on year in March, compared with a revised growth rate of 14,6% in February.
"This was the lowest year-on-year growth since February 2002, and brought the average price of a house in the middle segment of the market to about R765400," Du Toit said. The middle segment refers to houses 80m²-400m² in size and valued at up to R2,2m.
Business Day

"What does this mean?" I hear you cry. Probably that we need not worry, as Francois Viruly thinks below:

Lowest house price growth since 2002
Moneyweb - South Africa
House prices have reported the lowest growth in more than four years, according to the Absa House Price Index (HPI), but the slower trend is no cause for concern, say experts.

The figures are in line with expectation, says Francois Viruly, independent property economist and Wits professor.

"At the moment, the market is taking a breather and in two years time, property prices will rise more steeply again", adds Viruly.

Leave a comment:

Security Picture (click to change)
Word shown in picture:
menu close

Search Articles