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FNB September 2010 Property Barometer
FNB - South Africa
We retain the expectation of average price decline for 2011 as a whole, after an expected 6.4% increase in the 2010 average price over 2009's average price.

The reasoning behind this expectation is a currently unbalanced (weak demand relative to supply) residential market, and with no obvious major stimulus in the pipeline. The August consumer price inflation number of 3.5% must make a further interest rate cut a real possibility. However, the household sector is not in a position to respond with aggressive borrowing to low interest rates because, as the SARB reported in its latest Quarterly Bulletin, the household debt-to-disposable income ratio remains very high.

Therefore, as time goes by, we are witnessing the positive impact of rapid interest rate cuts between December 2008 and August 2009 wear thin, and there is very little to replace that stimulus and to support demand in a very unbalanced market. In the absence of strong demand, we feel that prices will have to adjust downward to ultimately create a better balance between demand and supply.
FNB September 2010 Property Barometer

International Property Law Conference
Unisa - South Africa
27-29 October 2010
2010 marks the 25th year since the Department of Private Law, University of South Africa, launched the annual Property-law teachers' seminar. The seminars intend to bring together practitioners and teachers of Property Law to discuss recent developments in the field. To celebrate the 25th anniversary, the Property-law group from Unisa is presenting an International Property Law Conference.

The conference is comprised of four topics and sessions. A keynote speaker will introduce each session with an overview of the current issues relevant to the topic under discussion. The speakers and session topics are:
- Basic Principles of Property Law
- Acquisition of Ownership
- Real Security Law
- Constitutional Property Law

Absa House Price Index - September 2010
Absa - South Africa
In the first nine months of 2010 the average nominal value of middle-segment homes increased by an average of 9,1% y/y, with real price growth averaging 4,9% y/y in the period January to August. Real price growth recorded over this period is based on an average headline consumer price inflation rate of 4,7% y/y in the first eight months of the year.

Based on the abovementioned house price trends up to the third quarter of the year, nominal year-on-year price growth of about 7% is expected for the full year. Real house price growth for 2010 will be dependent on nominal price trends as well as average consumer price inflation for the twelve month period.
Absa September House Price Index

All is not lost for self employed bond applicants
RealEstateWeb - South Africa
There are a number of ways to improve the likelihood of gaining home loan application approval.

New statistics released by ooba - South Africa's leading bond originator - show that self-employed South Africans are finding it increasingly difficult to have their home loan applications approved compared to their employed counterparts.

The statistics show that 57.9% of self-employed applicants had their bond declined in the 2009/10 financial year, an increase of 2.4% compared to 2008/09. This compares with a 3.5% fall in the decline ratio for employed applicants in 2009/10 to 48.1%, from a 51.5% decline ratio the previous year.

According to Saul Geffen, CEO of ooba, self-employed applicants tend to be viewed as a higher risk than employed applicants, due to the perceived instability in income of these individuals, particularly in these challenging economic times.

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