House Price Indices by Major Province and Major Metro
South Africa - FNB
The Western Cape continued to have by a significant margin the fastest average house price growth in the 2nd quarter of 2017, compared to the rest of the country’s major residential regions.
However, mounting affordability challenges in that province, caused by its noticeably superior house price growth compared to other regions in recent years, are believed to be behind the slowing in its house price growth. The slowing average house price growth in the Western Cape started early last year, and continued into the 2nd quarter of 2017.
Viewing the period from the beginning of 2010 to the 2nd quarter of 2017, the Western Cape has had 79.9% cumulative house price growth, followed by 49.2% in KZN and 41.7% in Gauteng. The Eastern Cape has had 38.7%, and the 5 Smaller Provinces have recorded 37.2%
A combination of high per household income but significantly lower house prices than the Western Cape makes Gauteng the most affordable major housing region, with the lowest Average House Price/Per Household Income.
Common property infringements in sectional title schemes
South Africa - IHFM
Sectional title property owners and tenants often do not know the regulations regarding uses of sections and common property. It is up to the body corporate to ensure that any infringements are dealt with timeously, says Michael Bauer, general manager of property management company IHFM.
Regulation 30 (a) and (b), states clearly that the common property, sections and exclusive use areas should be used in such a way that does not interfere with others within the scheme, which is also mentioned in the STSMA in Section 13 (1)(d) and (e).
This might seem obvious, says Bauer, but there have been instances where parking bays, for example, have been taken up by additional vehicles, boats, or trailers, even though they are not rented by the person using them.
Common property infringements
Can the property market in Cape Town survive a recession?
South Africa - Rawson
Over the last month, the rand has plummeted from first to last place in the list of best performing emerging market currencies, and consumer and investor confidence levels have taken a serious knock. While it’s not yet certain whether this – and our new-found junk status – will trigger a full-blown recession, experts are predicting higher than normal inflation and rising interest rates over the next few years.
“Under normal circumstances, this kind of economic activity would suggest tough times on the horizon for the residential property market,” says Schalk van der Merwe, franchisee for the Rawson Properties Helderberg group. “Consumers will be cutting back on expenses and trying to reduce their long-term debt, which inevitably means fewer buyers looking to get into the property market and fewer buyers upgrading to bigger and better homes.”
This decreased market activity will likely see many South African cities experiencing property price stagnation or even reduction, but Van der Merwe believes Cape Town may prove to be the exception to the rule.