People with investment properties in South Africa are seeing a better return not only from rentals but from ongoing drops in interest rates. For those South Africans living abroad, 77% still have some form of investment in SA - 69% have a bank account, 32% still own a house, and 29% still maintain their SA retirement annuity.
Many experts believe that the property market is starting to show green shoots of recovery which is also attracting expats. Comments John Loos, Property Strategist at FNB: “There is a recovery of sorts in the SA property market in that there seems to be a slight uptick in demand activity. However, it would be some time before this translates into national price inflation, because I believe that the oversupply of property on the market is significant and will take a while to be mopped up. I do believe that there may well have been some slight increase in expats returning home, especially from the likes of Dubai which has come under severe stress.”
A number of expats are also seeing 2010 as a fantastic investment opportunity by purchasing guest houses and hotels. With the exposure South Africa tourism will receive during the Fifa World Cup it is a fantastic opportunity to market their properties to the rest of the world. Adds du Toit: “Some of the expats may see opportunity in the hospitality industry due to the World Cup next year, and will then invest some hard currency in related properties, which will benefit this segment of the market.’’
“SA boasts phenomenal landscapes and wildlife, warm and friendly people, the ability to host world class events and fantastic business opportunities,” adds Levitt, “and there are also many opportunities associated with infrastructure developments ahead of the 2010 Soccer World Cup which is attracting expats. Those who left our shores are now realising that the grass is not always greener on the other side." (Read More..)
eProp - Alliance Group
Wednesday, 15 July 2009
Monday, 06 July 2009
South African House Prices Slide Most in 23 Years
South African house prices fell the most in 23 years last month, dropping 4.4 percent from the year- earlier period, according to Absa Group Ltd., the country’s biggest mortgage lender.
The average nominal house price dropped to 924,600 rand ($115,130) as prices fell 0.5 percent in the month, Absa said in an e-mailed report today.
South Africa is in its first recession in 17 years, pushing up unemployment, slowing consumer spending and depressing house prices. The Reserve Bank has cut its benchmark interest rate five times since December, dropping it to 7.5 percent, to help revive the economy.
“Nominal house price deflation is set to continue for the rest of 2009, starting to slow down towards the end of the year,” Absa said in an e-mailed report today. “The lagged effect of lower interest rates and a gradual recovery in the economy from the second half of the year are factors which will contribute to an expected improvement in residential property market conditions from early 2010.”
House prices will probably decline about 3.5 percent this year, and by more than 12 percent after taking inflation into account, the Johannesburg-based lender said.
Absa’s house-price index is based on the average cost of a home from the mortgage applications it receives. Standard Bank Group Ltd., which uses the median price in its survey, said July 1 that house prices fell 4.9 percent in June compared with a year earlier.
By Mike Cohen
Bloomberg.com
The average nominal house price dropped to 924,600 rand ($115,130) as prices fell 0.5 percent in the month, Absa said in an e-mailed report today.
South Africa is in its first recession in 17 years, pushing up unemployment, slowing consumer spending and depressing house prices. The Reserve Bank has cut its benchmark interest rate five times since December, dropping it to 7.5 percent, to help revive the economy.
“Nominal house price deflation is set to continue for the rest of 2009, starting to slow down towards the end of the year,” Absa said in an e-mailed report today. “The lagged effect of lower interest rates and a gradual recovery in the economy from the second half of the year are factors which will contribute to an expected improvement in residential property market conditions from early 2010.”
House prices will probably decline about 3.5 percent this year, and by more than 12 percent after taking inflation into account, the Johannesburg-based lender said.
Absa’s house-price index is based on the average cost of a home from the mortgage applications it receives. Standard Bank Group Ltd., which uses the median price in its survey, said July 1 that house prices fell 4.9 percent in June compared with a year earlier.
By Mike Cohen
Bloomberg.com
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