Web Bytes 193

Domino effect of hard times on property trade
Weekend Post - South Africa
AS the screws are tightened on consumers, the interest rate hike by 0,50 basis points last week has not only had a negative impact on the country's property market.

Many estate agents, developers and conveyance attorneys in the Eastern Cape are also being forced to down-scale.

Part of the domino effect of the dire situation, property developers, conveyancing attorneys, bond originators and estate agents are feeling the pinch as interest rate hikes, the National Credit Act and the increased cost of living have potential property owners thinking twice about investing in the market.
Weekend Post

Sapoa joins critics of expropriation bill
Business Day - South Africa
An umbrella body representing more than 900 large commercial and industrial property owners added its voice yesterday to criticism of the government's draft expropriation law, which it said could damage efforts to attract domestic and foreign investment.

Commercial property association Sapoa said that while it supported land reforms to redress past injustices, it did not believe the government was aware of the negative consequences of the draft bill on investment and the country's image.

"Sapoa supports the land reform process but has serious concerns about the proposed amendments in the latest draft that has been circulated," Sapoa CE Neil Gopal said yesterday.
Business Day

A time to find value for money property - by Keith Wakefield
RodneyHayter.com - South Africa
The latest 0, 5% rise in interest rates will ensure that property prices remain flat until the interest rate starts to drop. This was originally expected to be early next year; however the time frame has now been extended to the third quarter of 2009

My concern is that this latest hike is probably not the end. In retrospect it may have been better for us to have had a shorter period of sharper interest rate hikes. Although more painful it would have allowed us to adjust more quickly.

I am also concerned for first time home-buyers who are feeling that they are being locked out of the property market. Not only do new buyers need to pass muster with the National Credit Act, but banks have changed their lending criteria making it more difficult to raise home finance.
RodneyHayter.com

National Treasury welcomes report on banks
Banking Association of South Africa - South Africa
The National Treasury has welcomed the release of the Executive Overview of the Banking Enquiry Report by the Competition Commission of South Africa.

It said that competition and efficiency in the financial sector are significant priorities for the National Treasury, and that it strongly support the public interest in this regard.

"The National Treasury therefore acknowledges the release of the Banking Enquiry report as a crucial first step towards achieving greater competition in the retail banking sector.
Banking Association of South Africa