Sectional Titles Act signed
HomeTimes - South Africa
The Sectional Title Schemes Management Act (STSMA) and Community Schemes Ombuds Service Act (CSOSA) have been signed by President Jacob Zuma.
While the two new acts introduce very significant changes to scheme management law, as well as bringing the CSOS fully into operation to resolve scheme administration disputes, no confirmation has been received on when the new regulations will be Gazetted.
“We are waiting formal communication from the Department [of Human Settlements] as to when the regulations will be published,” said Coenie Groenewald, chief operating officer at the National Association of Managing Agents. “Process states that the regulations become effective on the date of publication. We are also trying to obtain a copy of the signed regulations from the department.”
Residential building statistics
Absa - South Africa
Declining trend evident in residential building activity
Conditions with regard to building activity in the South African market for new housing seem to be deteriorating, based on trends in the first seven months of 2016. Levels of building activity have in fact contracted markedly in all segments of housing in both the planning and construction phases in July this year compared with a year ago. These trends are based on data published by Statistics South Africa in respect of building activity related to private sector-financed housing (see explanatory notes).
The number of new housing units for which building plans were approved contracted by 8,4% year-on-year (y/y), or 2 947 units, to 32 197 units in the first seven months of the year. The contraction was largely evident in the two segments of houses, which showed a combined contraction of 13,5% y/y, or 3 083 units, to 19 826 units over the 7-month period. The segment of flats and townhouses, however, recorded subdued growth of 1,1% y/y over the same period.
The number of new housing units reported as being completed increased by 2,6% y/y in the period January to July, with the segment for houses smaller than 80m² contracting and the segment for flats and townhouses still increasing by almost 24% y/y over this period. With negligible growth in respect of the planning of flats and townhouses so far this year, the construction phase is showing diminishing year-on-year growth in the seven months up to July.
Residential building stats Jul 2016
Average property rental now R6570
PayProp - South Africa
The average South African rental for the second quarter of 2016 was R6 570.50, a 6.4% increase from the same period in 2015. PayProp Group CEO Louw Liebenberg says that the figures show a welcome return to stability after a one percentage point drop from the 7.4% measured in Q4 2015.
"This has been an extremely interesting quarter to watch - one in which we’ve dug deeper into tenancy dynamics than ever before, resulting in our view that the average tenant is far more financially vulnerable than previously thought."
In the period under review, tenants who earn below R10 000 per month used up more of their available credit than other tenants. But from this point onward the trend line flattens out until the R40 000 pay bracket - which is not as one would expect.
Average property rental
Jeremy Cronin to speak on Expropriation Bill at Rode-REIM Conference 2016
Rode - South Africa
A highlight on the calendar of the South African property industry, the annual conference jointly organised by renowned property economist Erwin Rode of Rode & Associates and Real Estate Investor Magazine, will take place in Johannesburg on 27 September and in Cape Town on 29 September.
This year’s event, sponsored by Greystone Residential, will see audiences in both centres addressed by the South African Deputy Minister of Public Works, Jeremy Cronin (who will talk on the Government’s Expropriation Bill) and Stephen Brookes of Balwin Properties (on the case for new property developments in South Africa).
Both centres will also hear panel discussions with experts in the field on the increase in offshore investments in the global village, as well as Erwin Rode’s annual assessment on the prospects for property in the year ahead.
Jeremy Cronin to speak on Expropriation Bill