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Market Overview by John Loos, FNB Home Loans Strategist
RodneyHayter.com - South Africa
This is Part One of Four Parts of a Market Overview by John Loos, FNB Home Loans Property Strategist.

The October FNB House Price Index showed a further decline in its year-on-year inflation rate, as it edges ever closer towards negative growth or deflation. From a revised growth rate of 2,2% in September, the year-on-year inflation rate declined to 1,1% in October.

On a month-on-month basis, a seasonal factor may have assisted in pushing up the growth rate into slightly positive territory in recent months, an event, which happens regularly after a mid-year dip, but this should not be construed as meaning any sort of recovery in the market yet. The average price of house was R743 517.
RodneyHayter.com


E-conveyancing funds not wasted, says Victoria
TheAustralian - Australia

THE Victorian Government believes the millions of dollars it has spent building a state-based electronic conveyancing system have not been wasted.

The system stands a good chance of being used nationally, it says.

The e-conveyancing system, which cost about $40 million to develop, has been used for just one property settlement since its launch last November and is about to be replaced by a national system.

Victorian Environment Minister Gavin Jennings told state parliament last week the money that had been spent on the state system was not a "sunk investment".
TheAustralian.com

Our property price figures are best - Absa
Realestateweb - South Africa

Bank's senior property analyst responds to criticism that bank house price reports are "a lot of bunk".

Absa's (JSE:ASA) senior property analyst Jacques du Toit has responded to criticism by a property industry veteran on Realestateweb that bank house prices are a "load of bunk".
Brian Black, a former managing director of Bill Rawson Estates and the ERA Steer Property Group, took aim at house price figures released by banks and mortgage originator "ooba" , saying the falling figures don't make sense.

"Eighteen months ago a bond of R620 000 would have required a payment of R6 827 per month. That same payment would only get a buyer a bond of R505 000 today," said Black in a guest article on Realestateweb.co.za.

"What this means is that because of affordability, buyers are forced to buy down and now the 'economists' are saying these statistics are showing a drop in house prices." That, said Black, is like saying if the average shopper could afford to buy R2 000 worth of groceries per month last year but can only afford to buy R1 500 per month now, then food prices must have dropped by 25%.
Realestateweb.co.za

Control foreign ownership of land
Property24.com - South Africa
Thozi Gwanya, the director general of Land Affairs, told MPs on Tuesday that that his department has prepared legislation restricting the foreign ownership of land.

He told Parliament's joint budget committee that the proposed new laws are presently the subject of consultation "with various partners".

He complained about the shortage of land for the reform process and declared that "Foreigners are able to buy more hectares with their currencies." He related to members of the committee that he spoken to a number of Afrikaners in the Simonstown area, who told him they could not afford land in the town, and were having to move to Bellville instead. "This is affecting all South Africans," he said, "black and white."
Property24.com