Rental Index - Second Quarter 2019
South Africa - PayProp
While the rental market and economy as a whole are not in the best shape, there are a few silver linings:
- Rental growth may be subdued, but the trend is at least not downward anymore.
- Low levels of inflation and rental growth are good news for tenants, who are under continued financial pressure.
- We have seen an increase in income growth so far in 2019, even though it is still below inflation and rental growth levels.
- Six out of the nine provinces saw an increase in their rental growth rate compared to Q1.
- While most tenants’ financial indicators have been declining slowly over time, this has not affected the average credit score much.
Rental growth is expected to stay muted for the time being, with a best-case scenario of a slow recovery towards the end of the year.
Future gazing - what's new in proptech
UK - Search Acumen
We invited representatives from HM Land Registry (HMLR), Leverton, an Artificial Intelligence and Deep Learning technology company, International Property Network (IPN), a blockchain property technology firm, research-led Artificial Intelligence company, Eigen Technologies, and also representatives from some of the country’s leading law firms to discuss hot-button issues in the digitisation of the property sector.
Multi-generational living makes cents
South Africa - Property360
Humans, by nature, are a resilient species and when the going gets tough they rise to meet the challenges. They also often band together and this survival tactic is fast filtering into the property market, with families living together more frequently to combat rising living and property costs.
The latest figures from Statistics SA’s General Household Survey 2018, released in May, show that 37.6% of the country’s 16.7million households consist of two generations and 14.2% contained “at least” three generations.
The report estimates that:
- 39.1% of households could be classified as nuclear (parents or parent with children).
- 32.9% of households could be classified broadly as extended households (a nuclear core combined with other family members such as parents or siblings).
- 2.3% of households were classified as complex, meaning they contained non-related persons.