Farmer Wins Landmark Case
An article published on the IOL website discusses the results of what some are calling a landmark case for South African farmers and other citizens with business interests in crisis torn Zimbabwe. On Tuesday, the Pretoria High Court ruled in favour of a Bothaville farmer who lost a number of farms and businesses in Zimbabwe due to the ongoing political upheaval.
The Judge, Bill Prinsloo, ruled that Crawford von Abo had the right to diplomatic protection of his assets in Zimbabwe from the South African government, specifically regarding the violation of his rights by the Zimbabwean government. Prinsloo also ruled that the government had 60 days to remedy the situation and report back to the court regarding the steps taken to restore his rights in Zimbabwe.
Von Abo has been struggling for more than six years to get the South African government to act against the Zimbabwean government’s confiscation of land owned by South African citizens. Up until now, his pleas have fallen on deaf ears and von Abo’s counsel told the court that his efforts to obtain help from the government were like “the Yellow Brick Road – the road to nowhere”.
According to von Abo, in 1997 the Zimbabwean government violated his rights by destroying his property interests in a number of farms in the country, which occurred as part of its national policy to expropriate white-owned farms. To this end, he was not paid compensation for his loss.
Judge Prinsloo said he regretted how difficult it had been to resist the conclusion that “the respondents (government) were simply stringing the application along and never had any serious intention to afford him proper protection”.
Prinsloo went on to say, “Their feeble efforts, if any, amounted to little more than quiet acquiescence in the conduct of their Zimbabwean counterparts and their ‘war-veteran’ thugs”. According to the judge, von Abo had demonstrated that his rightful property in Zimbabwe was unlawfully expropriated under international law and that he had not been compensated for it.
Von Abo’s attempts to protect his interests by suing the Zimbabwean government within the country had proved futile. Prinsloo said that given the state of the country’s legal system and the government’s disregard for the orders of its own courts, particularly in light of expropriation, no more remedies were available to him.
Prinsloo added that the South African government had dealt with the von Abo matter in bad faith and irrationally. “For six years or more, in the face of a stream of urgent requests – they (government) did absolutely nothing to bring about relief to the applicant and hundreds of other white commercial farmers in the same position. Their ‘assistance’ was limited to empty promises”.
He went on to say, “They (government) exhibited neither the will nor the ability to do anything constructive to bring their northern neighbour to book. They paid no regard, of any consequence, to the plight of valuable citizens such as the applicant with a 50-year track record in Zimbabwe and other hard-working white commercial farmers making a substantial contribution to the GDP in Zimbabwe and providing thousands of people with work in that country”.
The judge thus concluded that von Abo qualified for diplomatic protection from the South African government, which “may involve effective diplomatic pressure on the Zimbabwean government to restore the properties to the applicant and his companies and to pay compensation for losses and damages”.
As part of the ruling, Prinsloo indefinitely postponed von Abo’s claim for damages against the government regarding the farms and business interests he had lost in Zimbabwe. Von Abo indicated during the trial that the conservative total in damages pertaining to his six farms, including the implements and other assets lost, amounted to around R60 million.
According to Ernst Penzhorn, von Abo’s lawyer, in response to the verdict, his client indicated that he “is grateful that he could have turned to a court in his own country to protect his rights. This is comforting if one looks at how he was treated with no sympathy by members of the executive”.
Penzhorn said that the next step would be to approach the Constitutional Court to confirm the judgment. He said he believed that the decision would open the door for many South African citizens who lost business interests in neighbouring Zimbabwe. Regarding the claim for damages, he said that they would first see what the government’s response is before going any further.
The information in this article is courtesy of Zelda Venter (“Landmark win for SA farmer”, Pretoria News, 30 July 2008).
Visit www.sahometraders.co.za if you would like to buy or sell property in South Africa.
Thursday, July 31, 2008
Wednesday, July 30, 2008
Expropriation Bill Likened to Situation in Zimbabwe
Civil Society Says No to Land Bill
An article published on the IOL website has drawn attention to civil society’s reactions over the government’s proposed land bill. Fears have been expressed about the possibility of a Zimbabwe-like situation being set in motion.
Opposition parties and non-governmental organizations all joined hands in Centurion on Monday to oppose the controversial land bill at the first of two meetings held by the ad-hoc committee for the protection of property rights. The meeting was attended by representatives of the DA, ACDP, FF Plus, Solidarity and the Transvaal Agricultural Union (TAU).
The land bill has been designed to counter the slow progress of land reform in South Africa, but the farming sector has dismissed the bill as a government tool to enforce Zimbabwe-style land grabs.
Former foreign affairs minister, Pik Botha attended the conference and when asked about whether South Africa could go down the same road as its neighbouring country, replied, “There is no question about it. There would have been no agreement, no constitution if we (National Party) were told then that this amendment would be implemented”.
He added that, “Property rights, like other fundamental rights, were agreed upon by the National Party and the ANC to be included in the Bill of Rights. It is unconstitutional to tamper with them and will lead to catastrophe”.
Botha argued that the injustices of the past could not be compensated for in the present by the creation of further injustices. Some of the consequences, he said, would be decreased food production and no foreign investment. “Black people, whom this is intended to help, will end up like those in Zimbabwe and pay the highest price”.
Director of research at the University of North West, Professor Andre Duvenhage said that the ANC’s decision at Polokwane suggests a shift from a policy of non-state intervention in the market to a more radical pro-expropriation stance, which will make land reform a less market-driven process.
Duvenhage said that in 1994, about 80% of agricultural land or around 82 million hectares was owned by about 61 000 commercial farmers, but that number has dropped to just 46 000 at present. The government’s goal to have 30% of the land redistributed to blacks by 2015 amounts to about 25.9 million hectares, but at the current rate this goal would only be achieved by 2058. 20.6 million hectares of land must still be transferred.
TAU general manager, Bennie van Zyl said that the government’s “lies and distortions” about the history of land ownership in South Africa bordered on ridiculous and that, “No white commercial farmer has stolen the land he is currently farming on from anyone”.
Van Zyl added that investor confidence was of the utmost importance in South Africa, but the ANC was acting as if this was of no concern to them at all. “How can they expect that anybody will invest with confidence in a country where they could at any time be targeted with such a draconian Expropriation Act?”
He also said that the role of agriculture in the economy has not been sufficiently recognized and that the uncertainty created by this proposed land bill has frightened off investors. “The government has to show the world that what is happening here is not another Zimbabwe and that South Africa will not end up as part of a history of failure in Africa,” he argued.
Confronting the issue of affirmative action, Botha said that the ANC’s obsession with quotas has resulted in the rejection of skilled workers and artisans who would certainly have made a significant contribution in terms of the promotion of skills among black workers, as well as actual empowerment.
Botha went on to say that the ‘boomerang effect’ of the Employment Equity Act and the way in which it was being implemented has seen masses of blacks still not trained or employed. “We acknowledge that the ANC inherited a lot of misery from the past, but at least they also inherited the most advanced infrastructure in Africa,” he said.
There is no doubt that land reform needs to take place in South Africa, but the question remains whether the new land bill is the right way forward, particularly in light of its threat to property rights entrenched in the constitution that set this country free from Apartheid.
The information in this article is courtesy of Barry Bateman (“Land bill ‘can cause Zim-type situation’”, Pretoria News, 29 July 2008).
Visit www.sahometraders.co.za if you would like to buy or sell property in South Africa.
An article published on the IOL website has drawn attention to civil society’s reactions over the government’s proposed land bill. Fears have been expressed about the possibility of a Zimbabwe-like situation being set in motion.
Opposition parties and non-governmental organizations all joined hands in Centurion on Monday to oppose the controversial land bill at the first of two meetings held by the ad-hoc committee for the protection of property rights. The meeting was attended by representatives of the DA, ACDP, FF Plus, Solidarity and the Transvaal Agricultural Union (TAU).
The land bill has been designed to counter the slow progress of land reform in South Africa, but the farming sector has dismissed the bill as a government tool to enforce Zimbabwe-style land grabs.
Former foreign affairs minister, Pik Botha attended the conference and when asked about whether South Africa could go down the same road as its neighbouring country, replied, “There is no question about it. There would have been no agreement, no constitution if we (National Party) were told then that this amendment would be implemented”.
He added that, “Property rights, like other fundamental rights, were agreed upon by the National Party and the ANC to be included in the Bill of Rights. It is unconstitutional to tamper with them and will lead to catastrophe”.
Botha argued that the injustices of the past could not be compensated for in the present by the creation of further injustices. Some of the consequences, he said, would be decreased food production and no foreign investment. “Black people, whom this is intended to help, will end up like those in Zimbabwe and pay the highest price”.
Director of research at the University of North West, Professor Andre Duvenhage said that the ANC’s decision at Polokwane suggests a shift from a policy of non-state intervention in the market to a more radical pro-expropriation stance, which will make land reform a less market-driven process.
Duvenhage said that in 1994, about 80% of agricultural land or around 82 million hectares was owned by about 61 000 commercial farmers, but that number has dropped to just 46 000 at present. The government’s goal to have 30% of the land redistributed to blacks by 2015 amounts to about 25.9 million hectares, but at the current rate this goal would only be achieved by 2058. 20.6 million hectares of land must still be transferred.
TAU general manager, Bennie van Zyl said that the government’s “lies and distortions” about the history of land ownership in South Africa bordered on ridiculous and that, “No white commercial farmer has stolen the land he is currently farming on from anyone”.
Van Zyl added that investor confidence was of the utmost importance in South Africa, but the ANC was acting as if this was of no concern to them at all. “How can they expect that anybody will invest with confidence in a country where they could at any time be targeted with such a draconian Expropriation Act?”
He also said that the role of agriculture in the economy has not been sufficiently recognized and that the uncertainty created by this proposed land bill has frightened off investors. “The government has to show the world that what is happening here is not another Zimbabwe and that South Africa will not end up as part of a history of failure in Africa,” he argued.
Confronting the issue of affirmative action, Botha said that the ANC’s obsession with quotas has resulted in the rejection of skilled workers and artisans who would certainly have made a significant contribution in terms of the promotion of skills among black workers, as well as actual empowerment.
Botha went on to say that the ‘boomerang effect’ of the Employment Equity Act and the way in which it was being implemented has seen masses of blacks still not trained or employed. “We acknowledge that the ANC inherited a lot of misery from the past, but at least they also inherited the most advanced infrastructure in Africa,” he said.
There is no doubt that land reform needs to take place in South Africa, but the question remains whether the new land bill is the right way forward, particularly in light of its threat to property rights entrenched in the constitution that set this country free from Apartheid.
The information in this article is courtesy of Barry Bateman (“Land bill ‘can cause Zim-type situation’”, Pretoria News, 29 July 2008).
Visit www.sahometraders.co.za if you would like to buy or sell property in South Africa.
Monday, July 28, 2008
Small Towns Still Booming in SA
Investment Getaway in the Karoo
An article published in the Weekend Post has drawn attention to the Karoo’s newfound status as a dream location for property investment. In fact, with the rest of the Western Cape suffering from a continuous slump in the property market, the historical town of Graaff-Reinet is literally booming.
The main reason for the comparative boom in the Karoo property market seems to be buyers snapping up affordable housing and taking up a quieter, safer lifestyle. Unlike big cities, property experts believe that small towns are now being seen as ‘havens of peace and tranquility’ that is no longer available in more urbanized areas.
According to estate agents based in the Graaff-Reinet area, while the national property market may be struggling due to higher interest rates and the ever-increasing cost of living, they are battling to keep up with demand in the town commonly referred to as the “gem of the Karoo”.
The country’s fourth oldest town, Graaff-Reinet is renowned as the Karoo’s biggest tourist destination. Estate agents say that its popularity is growing among middle and high-end buyers, with small two or three bedroom homes selling for over R550 000 and a historical four bedroom home selling for R3.3 million.
Wayne Rubidge, Pam Golding principal for the area, says he thinks, “There is a combination of reasons why there is an increased interest in Graaff-Reinet. There is a great community, great schools and a growing economy – people are making serious lifestyle choices”. According to Rubidge, artisans, contractors and other property-related service providers are booked up months in advance, which is all indicates a booming property market.
Ken Ralph, national vice president and chairman of the southeastern region of the Institute of Estate Agents of South Africa, says that he has seen an increasing trend where buyers are moving to smaller communities along the Garden Route, primarily because of the improved cost of living and better security.
“Security is a big drawcard for people. The cost of living is also not as high in bigger city centres,” Ralph said. Rubidge adds that the influx of “new blood” into Graaff-Reinet is creating a number of new job opportunities in the region. “There has been a boom in new business as well. New skills mean new industries, fresh thinking gives new perspectives and opportunities,” he said.
Essentially what is driving the growth of industry in the town and fuelling the region’s economy is a combination of traditional sheep and livestock farming and the more recent game, wildlife and leisure practices, according to Rubidge. “This has positive spin offs for the property market and a new term commonly heard is ‘investment getaway’ – frequently used in describing homes in the R1 million to R2 million price bracket”.
Gillian Kleynhans, and estate agent for Midlands Properties, has noticed a significant increased in property being sold for business purposes. “We have seen a growing interest in all aspects – people looking to open businesses, or buy residential properties and smallholdings. People don’t only want to look in town, but surrounding areas as well,” she said.
Agreeing with Rubidge, Kleynhans says that the main attraction factor for buyers is the improved quality of life. “Our kids can still ride their bikes to school, it’s a lovely place to live and raise a family,” she said. “You have some people who are not in full retirement who want a smallholding. It is the best of both worlds – you can grow your own produce and be part of a vibrant community at the same time”.
According to Jenny McNaughton, of Seeff Properties, “There has been some international interest but most of the calls I have received have been from people in other provinces. People want to get away from the crime and daily traffic”.
The information in this article is courtesy of Melody Brandon (“Boom as buyers discover Gem of Karoo”, Weekend Post, 26 July 2008).
Visit www.sahometraders.co.za if you would like to buy or sell property in South Africa.
An article published in the Weekend Post has drawn attention to the Karoo’s newfound status as a dream location for property investment. In fact, with the rest of the Western Cape suffering from a continuous slump in the property market, the historical town of Graaff-Reinet is literally booming.
The main reason for the comparative boom in the Karoo property market seems to be buyers snapping up affordable housing and taking up a quieter, safer lifestyle. Unlike big cities, property experts believe that small towns are now being seen as ‘havens of peace and tranquility’ that is no longer available in more urbanized areas.
According to estate agents based in the Graaff-Reinet area, while the national property market may be struggling due to higher interest rates and the ever-increasing cost of living, they are battling to keep up with demand in the town commonly referred to as the “gem of the Karoo”.
The country’s fourth oldest town, Graaff-Reinet is renowned as the Karoo’s biggest tourist destination. Estate agents say that its popularity is growing among middle and high-end buyers, with small two or three bedroom homes selling for over R550 000 and a historical four bedroom home selling for R3.3 million.
Wayne Rubidge, Pam Golding principal for the area, says he thinks, “There is a combination of reasons why there is an increased interest in Graaff-Reinet. There is a great community, great schools and a growing economy – people are making serious lifestyle choices”. According to Rubidge, artisans, contractors and other property-related service providers are booked up months in advance, which is all indicates a booming property market.
Ken Ralph, national vice president and chairman of the southeastern region of the Institute of Estate Agents of South Africa, says that he has seen an increasing trend where buyers are moving to smaller communities along the Garden Route, primarily because of the improved cost of living and better security.
“Security is a big drawcard for people. The cost of living is also not as high in bigger city centres,” Ralph said. Rubidge adds that the influx of “new blood” into Graaff-Reinet is creating a number of new job opportunities in the region. “There has been a boom in new business as well. New skills mean new industries, fresh thinking gives new perspectives and opportunities,” he said.
Essentially what is driving the growth of industry in the town and fuelling the region’s economy is a combination of traditional sheep and livestock farming and the more recent game, wildlife and leisure practices, according to Rubidge. “This has positive spin offs for the property market and a new term commonly heard is ‘investment getaway’ – frequently used in describing homes in the R1 million to R2 million price bracket”.
Gillian Kleynhans, and estate agent for Midlands Properties, has noticed a significant increased in property being sold for business purposes. “We have seen a growing interest in all aspects – people looking to open businesses, or buy residential properties and smallholdings. People don’t only want to look in town, but surrounding areas as well,” she said.
Agreeing with Rubidge, Kleynhans says that the main attraction factor for buyers is the improved quality of life. “Our kids can still ride their bikes to school, it’s a lovely place to live and raise a family,” she said. “You have some people who are not in full retirement who want a smallholding. It is the best of both worlds – you can grow your own produce and be part of a vibrant community at the same time”.
According to Jenny McNaughton, of Seeff Properties, “There has been some international interest but most of the calls I have received have been from people in other provinces. People want to get away from the crime and daily traffic”.
The information in this article is courtesy of Melody Brandon (“Boom as buyers discover Gem of Karoo”, Weekend Post, 26 July 2008).
Visit www.sahometraders.co.za if you would like to buy or sell property in South Africa.
South African Estate Agents Feel the Pinch
Troubled Times for Estate Agents
An article published on the IOL website draws attention to the plight being suffered by real estate agents across South Africa. Hard times in the property industry have literally decimated the numbers of estate agents around the country, especially those who jumped on the bandwagon to make some money during the property boom.
The current economic slowdown has been punctuated by spiraling interest rates and rising food and fuel prices, but to make matters worse, the tougher credit laws have reduced sales by up to 30%. This has caused many struggling estate agents to cut their losses and leave the industry.
Concerns about the property industry were raised at the Nedbank Property Association Awards held in Cape Town last week, where many estate agents complained that the National Credit Act was killing the market, particularly for properties priced in the range of R250 000 to R1 million.
Many potential buyers have been refused loans by banks because of poor credit records and stricter lending criteria. There has been a call for the government to step in and provide previously disadvantaged buyers with collateral, deposits and subsidies to remove the risks to banks.
Currently, banks reject around 15 to 60 percent of bond applications in the range of a quarter of a million and a million rand. However, there are some players in the industry who believe that there are plans in the pipeline to amend the National Credit Act so that housing and car loans receive different treatment.
Tony Bailey, director of Platinum Property Trends, said that he had it on good authority that the government was taking another look at the act. “There are pending changes because the government had good intentions but did not realize the gravity of the act’s implications”.
Bailey went on to describe the many estate agents who have left the industry because of the slower economy as “chickens that entered the market for easy pickings”. He called their entry into the market a “feeding frenzy”.
In order to survive the current downcycle, many estate agencies had made a move to sell property overseas, in response to the heightened demand by the more affluent South Africans looking to buy property overseas for investment purposes.
Jeanne van Jaarsveldt, marketing and finance director of RE/MAX Southern Africa, said that while there had been a 7 percent drop in the number of real estate agents since the beginning of the year, about 311 new agents had joined the group. Two offices have been sold and would soon be re-opening. An investment of R9 million has been invested on brand positioning, with a focus on increased advertisement.
According to van Jaarsveldt, a lot of the agents who have pulled out of the industry should not have been there in the first place. Also, “a lot of agents are moving from smaller brands to the bigger ones”.
Andrew Golding, director of Pam Golding Properties, said that in today’s rapidly changing climate, a different kind of expertise is called for than that required during the boom years. The unprecedented growth over the last five years had upped the ranks of estate agents in South Africa by at least 40 percent.
However, now that the selling pattern has changed, so have the methods of selling altered and the survival of estate agents in the current market will depend on their ability to focus more precisely on training and skills.
The information in this article is courtesy of Melanie Peters (“Hard times for estate agents”, Cape Argus, 26 July 2008).
Visit www.sahometraders.co.za if you would like to buy or sell property in South Africa.
An article published on the IOL website draws attention to the plight being suffered by real estate agents across South Africa. Hard times in the property industry have literally decimated the numbers of estate agents around the country, especially those who jumped on the bandwagon to make some money during the property boom.
The current economic slowdown has been punctuated by spiraling interest rates and rising food and fuel prices, but to make matters worse, the tougher credit laws have reduced sales by up to 30%. This has caused many struggling estate agents to cut their losses and leave the industry.
Concerns about the property industry were raised at the Nedbank Property Association Awards held in Cape Town last week, where many estate agents complained that the National Credit Act was killing the market, particularly for properties priced in the range of R250 000 to R1 million.
Many potential buyers have been refused loans by banks because of poor credit records and stricter lending criteria. There has been a call for the government to step in and provide previously disadvantaged buyers with collateral, deposits and subsidies to remove the risks to banks.
Currently, banks reject around 15 to 60 percent of bond applications in the range of a quarter of a million and a million rand. However, there are some players in the industry who believe that there are plans in the pipeline to amend the National Credit Act so that housing and car loans receive different treatment.
Tony Bailey, director of Platinum Property Trends, said that he had it on good authority that the government was taking another look at the act. “There are pending changes because the government had good intentions but did not realize the gravity of the act’s implications”.
Bailey went on to describe the many estate agents who have left the industry because of the slower economy as “chickens that entered the market for easy pickings”. He called their entry into the market a “feeding frenzy”.
In order to survive the current downcycle, many estate agencies had made a move to sell property overseas, in response to the heightened demand by the more affluent South Africans looking to buy property overseas for investment purposes.
Jeanne van Jaarsveldt, marketing and finance director of RE/MAX Southern Africa, said that while there had been a 7 percent drop in the number of real estate agents since the beginning of the year, about 311 new agents had joined the group. Two offices have been sold and would soon be re-opening. An investment of R9 million has been invested on brand positioning, with a focus on increased advertisement.
According to van Jaarsveldt, a lot of the agents who have pulled out of the industry should not have been there in the first place. Also, “a lot of agents are moving from smaller brands to the bigger ones”.
Andrew Golding, director of Pam Golding Properties, said that in today’s rapidly changing climate, a different kind of expertise is called for than that required during the boom years. The unprecedented growth over the last five years had upped the ranks of estate agents in South Africa by at least 40 percent.
However, now that the selling pattern has changed, so have the methods of selling altered and the survival of estate agents in the current market will depend on their ability to focus more precisely on training and skills.
The information in this article is courtesy of Melanie Peters (“Hard times for estate agents”, Cape Argus, 26 July 2008).
Visit www.sahometraders.co.za if you would like to buy or sell property in South Africa.
Friday, July 25, 2008
Buyers Appear to be Holding Off on SA Property
Houses Not Selling Despite Low Prices
An article by Dispatch Online’s business correspondent, Xolile Bhengu has drawn attention to the fact that despite lower prices, houses are harder to sell. In fact, sellers are having to settle for far less than asking price and real estate agents are not optimistic about the market improving in the current quarter. This is according to First National Bank’s latest Residential Property Barometer.
The recent survey by FNB is yet another confirmation that the continued economic slowdown is putting pressure on homeowners. Based on perception, agents polled in the survey reported that houses in the greater Tshwane area and the Western Cape have been the slowest movers during the second quarter of 2008.
The FNB Property Barometer indicated that four out of five properties remained on the market for four months before reaching a sale. Despite the reduction in prices, at least 85% of sellers settled for less than the original asking price, which is up slightly on the first quarter. The sale of lower income housing worth less than R350 000 was stable in comparison, but still averaged about 11 weeks on the market.
FNB conducted the survey by interviewing 150 estate agents from across South Africa, many working for some of the top estate agencies. Property strategist for FNB Home Loans, John Loos said that rising interest rates was the top cause for the slowdown according to estate agents, but this also included uncertainty around the economy and the political climate in the country.
Emigration is said to have accounted for 18% of sales in the second quarter, which is up 12% from the previous quarter. 8% of buyers were said to be moving closer to their places of work. Loos added that the volume of properties on the market is not surprising, particularly in light of the ANC’s Polokwane conference in December last year, where Jacob Zuma was elected party president, the electricity crisis, the election shenanigans in neighbouring Zimbabwe and the recent xenophobic violence.
Loos said, “It must be taken into account that the negative sentiment on the South African outlook and the questions about leadership come largely from the minority population in former white suburbs. Even estate agents are feeling miserable. Only 15% of the respondents said they believed there would be a market turn in the next quarter”.
While analysts have said it is too soon to start investing in the market, Loos believes that this is a good time to buy and will get even better as time goes on. “Interest rates may be high now, but they also eventually go down. If you can afford to buy a property, the opportunity to buy looks good in the next quarter,” he said.
The information in this article is courtesy of Xolile Bhengu (“Houses harder to sell despite lower prices”, Dispatch Online, 22 July 2008).
Visit www.sahometraders.co.za if you would like to buy or sell property in South Africa.
An article by Dispatch Online’s business correspondent, Xolile Bhengu has drawn attention to the fact that despite lower prices, houses are harder to sell. In fact, sellers are having to settle for far less than asking price and real estate agents are not optimistic about the market improving in the current quarter. This is according to First National Bank’s latest Residential Property Barometer.
The recent survey by FNB is yet another confirmation that the continued economic slowdown is putting pressure on homeowners. Based on perception, agents polled in the survey reported that houses in the greater Tshwane area and the Western Cape have been the slowest movers during the second quarter of 2008.
The FNB Property Barometer indicated that four out of five properties remained on the market for four months before reaching a sale. Despite the reduction in prices, at least 85% of sellers settled for less than the original asking price, which is up slightly on the first quarter. The sale of lower income housing worth less than R350 000 was stable in comparison, but still averaged about 11 weeks on the market.
FNB conducted the survey by interviewing 150 estate agents from across South Africa, many working for some of the top estate agencies. Property strategist for FNB Home Loans, John Loos said that rising interest rates was the top cause for the slowdown according to estate agents, but this also included uncertainty around the economy and the political climate in the country.
Emigration is said to have accounted for 18% of sales in the second quarter, which is up 12% from the previous quarter. 8% of buyers were said to be moving closer to their places of work. Loos added that the volume of properties on the market is not surprising, particularly in light of the ANC’s Polokwane conference in December last year, where Jacob Zuma was elected party president, the electricity crisis, the election shenanigans in neighbouring Zimbabwe and the recent xenophobic violence.
Loos said, “It must be taken into account that the negative sentiment on the South African outlook and the questions about leadership come largely from the minority population in former white suburbs. Even estate agents are feeling miserable. Only 15% of the respondents said they believed there would be a market turn in the next quarter”.
While analysts have said it is too soon to start investing in the market, Loos believes that this is a good time to buy and will get even better as time goes on. “Interest rates may be high now, but they also eventually go down. If you can afford to buy a property, the opportunity to buy looks good in the next quarter,” he said.
The information in this article is courtesy of Xolile Bhengu (“Houses harder to sell despite lower prices”, Dispatch Online, 22 July 2008).
Visit www.sahometraders.co.za if you would like to buy or sell property in South Africa.
Thursday, July 24, 2008
SA Property Market Not So Bad in Comparison
Slowdown Global Phenomenon
An international article published by Business 24/7 indicates that international real estate transactions have dipped by 46%, a figure influenced by the global credit crunch and economic uncertainty.
Investment in Asia and other emerging markets continues to grow, as major commercial property sales internationally totaled $154 billion in the first quarter of 2008, as compared to $283 billion at the same time last year, according to a New York based Real Capital Analytics report.
Property sales figures for the last couple of months reflect a weakening in Asia and an increasingly severe drop in sales in the United States and Europe. The United Kingdom appears to be leading the price declines, with the US following close on its heels. Since September 2007, the initial yield on acquisitions of commercial property has risen by more than 25 basis points in the Americas and by nearly 40 basis points in Europe.
Investment in land and development rights in Asia has topped almost $29 billion so far this year, making it the most popular choice for investors. Office properties in Europe come in second with just under $20 billion invested, followed by the Americas with $15 billion in transactions through April 2008.
Close to $56 billion of major commercial property transactions were completed in Europe, Africa and the Middle East during the first quarter of 2008. However, a significant turn of events saw Europe surpass North America as the most active marketplace for property sales. This should all be taken with a pinch of salt though, considering that this status was achieved while suffering a 40% drop in sales as compared to the 70% drop experienced in North America. The victory may also be shortlived, as property sales in Asia continue to grow and are not far behind.
Europe
Nearly all property types and most countries in Europe have seen a sharp decline in transactions this year and this has been more severe where larger deals are concerned. The number of deals in the first quarter year-on-year of more than $1 billion has decreased from 13 to just 5, while portfolio activity has dipped to 63% and entry-level deals have been cut by 89%.
Despite the slowdown this year, Britain still retains its status with the largest volume in Europe, even though this decreased overall by 61%. Germany, Sweden, Belgium and Denmark have all recorded bigger declines in property than Britain, while France, Russia and Poland have all fared a little better with sales down by 40% compared to a year ago.
Asia
The Asian sector includes Australia and New Zealand, which recorded positive trends in the first quarter, but this is beginning to lose some momentum. Sales of major commercial properties in Asia came to $48.3 billion in the first quarter of 2008, which is a 27% increase year-on-year. The gains seem to mask a gradual slowing in activity that has since become evident.
Global market factors are certainly having an impact on the slowdown, but the new regulations on land deals implemented by China are also partly responsible, according to the report. Auctions of major land plots in China totaled more than $10 billion per month, but has since dropped to just $3 billion. Despite this recent decline in sales, the total volume in China is still up 70%, equaling $21 billion. Sales in Hong Kong were somewhat flat in the first quarter, but a strong April has brought an increase of 21% year-on-year.
To the contrary, the sales volume in Australia and New Zealand has severely decreased by 47% and 24% respectively. Both countries performed badly in almost all sectors, as a number of listed property companies struggled to combat high levels of debt that resulted from a binge on property in the US, the UK and Japan in 2007. The total volume in Singapore declined by 36%, mainly due to an 85% volume drop in the apartment sector, as investors anticipate further weakening in housing.
Developed countries have experienced a fall of 25% in property transactions this year, while sales in emerging markets are up by a healthy 68%. Emerging countries were responsible for $102 billion in global property sales, representing 45% of total volume in Asia.
Americas
For the first time in the last five quarters, the volume in the western hemisphere has not topped $130 billion, recording only $50 billion in significant commercial property transactions in North and South America. However, performance over the last nine months is largely due to the credit crunch fallout. Some sectors in the US are down by as much as 80% in volume year-on-year, with all sectors suffering across the board.
The US remains the single largest national property market, although the deal flow is down by nearly 70% year-on-year. Canada is experiencing a similar situation, with volume declining by more than 70% over the same period. Needless to say, prices have not dropped nearly as much as volume has, with buyers and sellers engaged in a battle of wills over who will back down first on prices. The gap may be as wide as 15%.
The outlook seems to be brighter further south, with Brazil, Mexico and other developing countries starting to realize some of their potential. Mexico has a total volume up by more than 400% in the first quarter. South America has shown significant increases, with total volume quadrupling and land acquisitions leading the way. Argentina and Chile have also exceeded their total volume for the year compared to 2007.
Suffice it to say that while South African consumers are certainly feeling the pinch when it comes to interest rates and inflation, this economic slowdown is a global phenomenon and in fact, it is the developed countries that seem to record the worst hits. Emerging markets continue to grow, albeit more slowly, but there is still light at the end of the tunnel, so to speak.
The information in this article is courtesy of Parag Deulgaonkar (“International real estate transactions dip 46%”, Business 24/7, 23 July 2008).
Visit www.sahometraders.co.za if you would like to buy or sell property in South Africa.
An international article published by Business 24/7 indicates that international real estate transactions have dipped by 46%, a figure influenced by the global credit crunch and economic uncertainty.
Investment in Asia and other emerging markets continues to grow, as major commercial property sales internationally totaled $154 billion in the first quarter of 2008, as compared to $283 billion at the same time last year, according to a New York based Real Capital Analytics report.
Property sales figures for the last couple of months reflect a weakening in Asia and an increasingly severe drop in sales in the United States and Europe. The United Kingdom appears to be leading the price declines, with the US following close on its heels. Since September 2007, the initial yield on acquisitions of commercial property has risen by more than 25 basis points in the Americas and by nearly 40 basis points in Europe.
Investment in land and development rights in Asia has topped almost $29 billion so far this year, making it the most popular choice for investors. Office properties in Europe come in second with just under $20 billion invested, followed by the Americas with $15 billion in transactions through April 2008.
Close to $56 billion of major commercial property transactions were completed in Europe, Africa and the Middle East during the first quarter of 2008. However, a significant turn of events saw Europe surpass North America as the most active marketplace for property sales. This should all be taken with a pinch of salt though, considering that this status was achieved while suffering a 40% drop in sales as compared to the 70% drop experienced in North America. The victory may also be shortlived, as property sales in Asia continue to grow and are not far behind.
Europe
Nearly all property types and most countries in Europe have seen a sharp decline in transactions this year and this has been more severe where larger deals are concerned. The number of deals in the first quarter year-on-year of more than $1 billion has decreased from 13 to just 5, while portfolio activity has dipped to 63% and entry-level deals have been cut by 89%.
Despite the slowdown this year, Britain still retains its status with the largest volume in Europe, even though this decreased overall by 61%. Germany, Sweden, Belgium and Denmark have all recorded bigger declines in property than Britain, while France, Russia and Poland have all fared a little better with sales down by 40% compared to a year ago.
Asia
The Asian sector includes Australia and New Zealand, which recorded positive trends in the first quarter, but this is beginning to lose some momentum. Sales of major commercial properties in Asia came to $48.3 billion in the first quarter of 2008, which is a 27% increase year-on-year. The gains seem to mask a gradual slowing in activity that has since become evident.
Global market factors are certainly having an impact on the slowdown, but the new regulations on land deals implemented by China are also partly responsible, according to the report. Auctions of major land plots in China totaled more than $10 billion per month, but has since dropped to just $3 billion. Despite this recent decline in sales, the total volume in China is still up 70%, equaling $21 billion. Sales in Hong Kong were somewhat flat in the first quarter, but a strong April has brought an increase of 21% year-on-year.
To the contrary, the sales volume in Australia and New Zealand has severely decreased by 47% and 24% respectively. Both countries performed badly in almost all sectors, as a number of listed property companies struggled to combat high levels of debt that resulted from a binge on property in the US, the UK and Japan in 2007. The total volume in Singapore declined by 36%, mainly due to an 85% volume drop in the apartment sector, as investors anticipate further weakening in housing.
Developed countries have experienced a fall of 25% in property transactions this year, while sales in emerging markets are up by a healthy 68%. Emerging countries were responsible for $102 billion in global property sales, representing 45% of total volume in Asia.
Americas
For the first time in the last five quarters, the volume in the western hemisphere has not topped $130 billion, recording only $50 billion in significant commercial property transactions in North and South America. However, performance over the last nine months is largely due to the credit crunch fallout. Some sectors in the US are down by as much as 80% in volume year-on-year, with all sectors suffering across the board.
The US remains the single largest national property market, although the deal flow is down by nearly 70% year-on-year. Canada is experiencing a similar situation, with volume declining by more than 70% over the same period. Needless to say, prices have not dropped nearly as much as volume has, with buyers and sellers engaged in a battle of wills over who will back down first on prices. The gap may be as wide as 15%.
The outlook seems to be brighter further south, with Brazil, Mexico and other developing countries starting to realize some of their potential. Mexico has a total volume up by more than 400% in the first quarter. South America has shown significant increases, with total volume quadrupling and land acquisitions leading the way. Argentina and Chile have also exceeded their total volume for the year compared to 2007.
Suffice it to say that while South African consumers are certainly feeling the pinch when it comes to interest rates and inflation, this economic slowdown is a global phenomenon and in fact, it is the developed countries that seem to record the worst hits. Emerging markets continue to grow, albeit more slowly, but there is still light at the end of the tunnel, so to speak.
The information in this article is courtesy of Parag Deulgaonkar (“International real estate transactions dip 46%”, Business 24/7, 23 July 2008).
Visit www.sahometraders.co.za if you would like to buy or sell property in South Africa.
Wednesday, July 23, 2008
Estate Agents Still Performing Despite Tough Conditions
Top Property Awards in SA
An article published on by Real Estate Web draws attention to the winners of the coveted South African property awards. Jacoba (Kobie) Potgieter from Port Elizabeth is the new Nedbank Property Association Property Professional of the Year for 2008, making her the top real estate agent in the country.
The announcement of these awards took place at the Arabella Hotel in Hermanus over the weekend after ten nominees selected nationally for the property industry’s most prestigious title were interviewed by a panel of judges.
The awards are open to all members of the Property Association and the entry level is based on annual sales of more than R10 million (R7.5 million in rural areas) or 40 sales completed over a 12 month period ending in February 2008.
Potgieter has won a number of international and local awards, the latest being the highest commission earner in RE/MAX’s international team outside of the USA and Canada for the first quarter of 2008. She is the broker owner of RE/MAX’s independent estate agency in Port Elizabeth and the agency has rocketed from a sales staff of five in 2003 to a crew of 58 agents today and holds a commanding share of the market.
The award is also based on the agent’s community and social involvement, which in the case of Potgieter includes the sponsorship of primary and secondary schools, the organization of fund raising events for feeding and clothing orphaned babies, as well as the delivery of food packages to old age homes and indigent people.
The full nominees for the award were Kobie Potgieter (RE/MAX Independent Properties), Marianda de Villiers (Estpro Consultants), Michael Stephens (Seeff Properties), Roma Naude (RE/MAX Jacaranda), Sue du Preez (Pam Golding Properties), Carina Nieuwoudt (Realty1 IPG), Gerhardt Jooste (Prosperito), Daisy Govender (RE/MAX Dolphin Realtors) and Elna Maree (Agripro).
Movers and Shakers included Jeanne van Jarsveldt (RE/MAX Southern Africa), Mark Beckett (Bond Choice), John Cooper (Chas Everitt IPG), Rhys Dyer (Ooba), Dennis Dykes (Nedbank Limited), Linda Erasmus (Fine & Country), Adrienne Hersch (Adrienne Hersch Properties cc), Lydia Monyamane Makgadis (Properties & Development), Ian Slot (Seeff Atlantic Seaboard CBD & City Bowl) and Bruce Swain (Leapfrog Property Group).
The Young Lions comprised Douglas Ravenscroft (RE/MAX Platinum), Colin Green (Rabie Property Group), Liesel Greyvenstein (Greyven Steins Nortier), John Hart (Serengeti Golf and Wildlife Estate), Gerhard Kotze (ERA South Africa), Milton Koumbatis (Miltons Matsemala Inc), Ralph Rabie (Parcor), Cyrus Rogers (The Home Channel), Martin Schultheiss (Homenet) and Michelle Swart (Velvet Square).
The information in this article is courtesy of Rodney Hayter (“SA’s top property awards: winners”, Realestateweb, 21 July 2008).
Visit www.sahometraders.co.za if you would like to buy or sell property in South Africa.
An article published on by Real Estate Web draws attention to the winners of the coveted South African property awards. Jacoba (Kobie) Potgieter from Port Elizabeth is the new Nedbank Property Association Property Professional of the Year for 2008, making her the top real estate agent in the country.
The announcement of these awards took place at the Arabella Hotel in Hermanus over the weekend after ten nominees selected nationally for the property industry’s most prestigious title were interviewed by a panel of judges.
The awards are open to all members of the Property Association and the entry level is based on annual sales of more than R10 million (R7.5 million in rural areas) or 40 sales completed over a 12 month period ending in February 2008.
Potgieter has won a number of international and local awards, the latest being the highest commission earner in RE/MAX’s international team outside of the USA and Canada for the first quarter of 2008. She is the broker owner of RE/MAX’s independent estate agency in Port Elizabeth and the agency has rocketed from a sales staff of five in 2003 to a crew of 58 agents today and holds a commanding share of the market.
The award is also based on the agent’s community and social involvement, which in the case of Potgieter includes the sponsorship of primary and secondary schools, the organization of fund raising events for feeding and clothing orphaned babies, as well as the delivery of food packages to old age homes and indigent people.
The full nominees for the award were Kobie Potgieter (RE/MAX Independent Properties), Marianda de Villiers (Estpro Consultants), Michael Stephens (Seeff Properties), Roma Naude (RE/MAX Jacaranda), Sue du Preez (Pam Golding Properties), Carina Nieuwoudt (Realty1 IPG), Gerhardt Jooste (Prosperito), Daisy Govender (RE/MAX Dolphin Realtors) and Elna Maree (Agripro).
Movers and Shakers included Jeanne van Jarsveldt (RE/MAX Southern Africa), Mark Beckett (Bond Choice), John Cooper (Chas Everitt IPG), Rhys Dyer (Ooba), Dennis Dykes (Nedbank Limited), Linda Erasmus (Fine & Country), Adrienne Hersch (Adrienne Hersch Properties cc), Lydia Monyamane Makgadis (Properties & Development), Ian Slot (Seeff Atlantic Seaboard CBD & City Bowl) and Bruce Swain (Leapfrog Property Group).
The Young Lions comprised Douglas Ravenscroft (RE/MAX Platinum), Colin Green (Rabie Property Group), Liesel Greyvenstein (Greyven Steins Nortier), John Hart (Serengeti Golf and Wildlife Estate), Gerhard Kotze (ERA South Africa), Milton Koumbatis (Miltons Matsemala Inc), Ralph Rabie (Parcor), Cyrus Rogers (The Home Channel), Martin Schultheiss (Homenet) and Michelle Swart (Velvet Square).
The information in this article is courtesy of Rodney Hayter (“SA’s top property awards: winners”, Realestateweb, 21 July 2008).
Visit www.sahometraders.co.za if you would like to buy or sell property in South Africa.
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