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FNB Building and Renovations Market
FNB - South Africa
Where too for building activity? Judging by the resumption of positive growth in plans passed, it would appear that some form of recovery in building activity is in the pipeline as we head towards 2011. At least this is what is being planned.

However, given that there are signs that the mini-recovery in the existing home market appears to have come to an end, and we are slowing again, a 2011 building sector recovery is likely to very muted.

The overall residential market balance between demand and supply doesn't appear good yet.

Nevertheless, it is conceivable that off a very low base, after a huge decline in building activity, and with interest rates likely to remain low for a considerable time, 2011 can show mildly positive growth in building activity. We would think, however, that this growth in activity would largely take place in the so-called affordable housing sector, boosting the numbers of the StatsSA building category known as "Dwelling houses smaller than 80 square metres".
FNB Building and Renovations

Residential Building Stats
Absa - South Africa
Residential building activity recovering
Levels of activity in the South African residential building and construction sector seem to be recovering from a protracted period of decline in 2008 and 2009. According to data released by Statistics South Africa, the number of building plans approved for new housing was still lower in the first seven months of the year compared with the same period a year ago, but was on a rising trend over the past three months. The volume of new housing units constructed continued to contract, but at a slower pace.

The real value of plans approved for new residential buildings was down by only 0,8% year-on-year (y/y) in January to July this year, to R10,28 billion from R10,36 billion in the same period last year. The real value in respect of new residential buildings constructed was 20,5% y/y lower at R8,4 billion in the first seven months of the year from R10,57 billion in the corresponding period of 2009. These real values are calculated at constant 2005 prices.
Absa Building Stats

FNB Buy to let market
FNB - South Africa
The 3rd quarter FNB Estate Agent Survey shows no improvement in buy-to-let buying as a percentage of total buying (7%), from its lowest levels since the survey commenced back in 2004.
This result comes as little surprise, given that the household sector remains under financial pressure in a weak economy, most recent rental market data continues to point to an anaemic rental market, and that estate agents continue to point to low yields on residential property on average.

We believe that estate agents have been disappointed, after having shown increasing confidence in near term buy-to-let market prospects through 2008 to mid-2009. As a result, they have steadily adjusted their expectations downward over the past 4 quarters, to levels more in line with a weak actual reality.
FNB But to let market barometer

Property syndication - may the investor be aware
RealEstateWeb - UK
Do your homework before committing funds.

Private investors eyeing property syndication schemes should do their homework before committing funds or a signature to any agreement. This is according to Tsakane Shilubane, Manager: Legal Services for the South African Property Owners Association (SAPOA).

"Property syndication - or a collective property ownership scheme - is often seen as an attractive and more accessible investment particularly with property's age-old status as popular safe haven for cash," Shilubane says. "However, much needs to be considered for investors who may well be exposing themselves to needless risks."

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