.Research conducted by FNB shows the average house price in South Africa right now, across low, middle and high income areas.
The report is based on deeds data from South Africa’s 6 major metros – Tshwane, Joburg, Ekurhuleni, Ethekwini, Nelson Mandela Bay and Cape Town, and considers the number of natural person transactions over the course of 2016.
All commercial buyers and businesses are excluded from the report.
The statistics are primarily aimed at “value preservation” (current owners and potential sellers) with an emphasis placed on how much house prices have increased over the past year.
Average House Price 2017
Upper Income Areas
R2 892 000
Middle Income Areas
R1 517 000
Lower Middle Income Areas
Low Income Areas
“These prices point to a continuing trend in the high-end of the market being slightly weaker than the more affordable metro areas. This is to be expected given the country’s constrained, but not stressed, economic and financial times,” said FNB household and property sector strategist, John Loos.
With interest rates having risen, high net worth individuals’ investment incomes have likely slowed in recent years. Municipal rates and utilities tariffs are also rising sharply especially for higher end home owners, and effective personal tax rates being ratcheted up in a “no growth” economy, it is not surprising to see the Middle and Upper Income Area Segments’ average house price growth being the slowest at 3.2% and 2.7% respectively.
As a result, both of these segments’ price inflation rates have slowed from having had the two highest rates of the four segments back in 2014.
On a year-on-year basis, FNB recorded that the Low Income Area House Price Index showed the strongest growth, and actually had accelerated mildly through 2016, recording 6.7% year-on-year for the 4th quarter of 2016 compared with the previous quarter’s 6.5%.
The most “steady growth” area value band in recent years, however, has been the Lower Middle Income Area House Price Index, recording the 2nd highest average price increase of 6.4% in the 4th quarter, an increase from the previous quarter’s 5.7%.
Courtesy Staff Writer - Business Tech
'If buying because of the view, check zoning of surrounding properties'
The zoning rules that came into effect in 2015 encourages densification and have largely benefitted many who decided to subdivide their properties or have redeveloped their land.
Buyers should be aware of what might happen to buildings around them before they sign an offer to purchase, particularly if they are buying a property because of its views.
It has to be remembered that there is no legal right to a view, so if there is a chance that the view will be obstructed later, the buyer should check the local residential zoning.
The maximum height of SR1 (single residential) buildings should be from 10m to 11m to the top of the roof, depending on the size of its plot.
SR2 (single residential) is listed as incremental housing, and this can include additional uses such as group housing, boarding houses, places of worship, clinics, or places of entertainment, to name a few.
It is in GR (general residential) listed zones that the maximum height of the buildings could be as high as 50m to the top of the roof , which could impinge on a view or enjoyment of a property should this be erected right next door.
An illegal extension on a property can put the homebuyer in a potentially tricky situation.
Potential property buyers should be on the lookout for extensions, alterations or additions to dwellings and should specifically request a copy of the plans of the property.
An approved plan will shed some light on the age of the property, setbacks for building lines and of course whether the changes have been endorsed by the local authority.
Property buyers need to be aware that the council seeks recourse and remedy for illegal extensions to properties from the registered owner of the property at the time that the notice to comply is issued.
He notes that failure to comply will attract penalties and a stiff fine. However, there are ways that buyers can protect themselves.
Buyers who are in the process of purchasing a property can simply request a copy of the approved plans as a suspensive condition of sale. This means that unless the plans are produced, transfer will not take place and in effect will pass the responsibility of proving the legality of the structure to the seller or the current registered owner.
Construction has begun on the new $7.4 billion (R84 billion ZAR) new city in Modderfontein, Johannesburg, owned by Hong Kong listed Shanghai Zendai, with development of 300 residential units underway.
Plans to build a new city were unveiled last year in April by founder Zikhang Dai and some of the roads were reportedly already underway.
Shanghai Zendai acquired 1600 hectares of land in Modderfontein in 2013 from explosives and chemicals company AECI which sold it for R1.06 billion.
Chinese companies have been building roads and infrastructure across sub-Saharan Africa for years. The project will be among the largest real estate deals by a Chinese firm in South Africa.
Zendai South Africa chief operating officer Du Wendui said the development was a 10 to 15 year project, and there would be scepticism about its success, based on artists' impression of it as the new Manhattan of Africa.
"The project will be market driven, and depending on what our clients or developers want, the sky is the limit. Twenty years ago, nobody would have imagined that Sandton would look like it does today with its multiple skyscrapers," he was quoted as saying.
Plans for the city include a central business district, churches, a library, hospital and medical facilities, a sports and international conference centre, schools, and low-cost housing, among others.
Dai Zhikang said in 2013 that the project would transform the property into a "New York of Africa".
"It will become the future capital for the whole of Africa," he said.
The new city is also being built with technology in mind, with PCCW Global, the Hong Kong-based operating division of telecom company, HKT, set to provide technology and telecommunications services for the project.
Paarl, Franschoek and Stellenbosch along South Africa’s Wine Route were the fastest growing areas for South Africa millionaires, with numbers rising by 38 percent from 2007 to 2015, according to New data published by advisory firm New World Wealth, BusinessTech reported.
Along with the wine route, the Garden Route also performed well, showing a 26 percent increase of millionaires living there from 2007 to 2015.
By comparison, South Africa’s two largest cities, Johannesburg and Cape Town, saw a decline in the number of millionaires over the same period.
The New World Wealth 2016 report shows where wealthy South Africans live by cities.
It defines millionaires or high-net-worth individuals (HNWIs) as people with net assets of US$1 million (14.5 million rand) or more.
Johannesburg is home to the largest percentage of South African millionaires at 44 percent. There are also large populations living in Cape Town (18 percent), Pretoria (7 percent) and Durban (7 percent).
A large number of Johannesburg millionaires moved to other parts of the country or out of the country, according to New World Wealth. Cape Town millionaires were hit hard by the drop in local property prices relative to the U.S. dollar.
Property in South Africa is now dramatically less expensive for foreign buyers than four years ago, according to GlobalPropertyGuide. Since July 2011 the Trade-Weighted Rand Index fell 47.8 percent to December 2015, according to First National Bank. The rand fell from US$ 1 = ZAR 6.76 to US$ 1 = ZAR 14.40 today.
The business and financial heart of South Africa, Johannesburg is home to Sandton, considered Africa’s richest square mile. Financial services, basic materials and construction have given rise to millionaires there, BusinessTech reported.
Considered to be the mother city of South Africa, Cape Town has produced millionaires from real estate, financial services (especially fund management), retail and tourism.
The capital of South Africa, Pretoria-based millionaires got rich from basic materials, manufacturing and financial services.
The commercial hub of Kwazulu Natal, including Umhlanga, nurtured millionaires from pharmaceuticals, healthcare, construction and transport.
The Garden Route is a major vacation and retirement destination that includes George, Knysna, Plettenberg Bay, Wilderness, Hermanus and Keurbooms.
Paarl, Franschoek and Stellenbosch are located just outside Cape Town. They are known for their winelands and mountain scenery.
Other notable areas for millionaires include Bloemfontein, Port Elizabeth and East London plus smaller affluent towns such as St Francis Bay and Kenton-on-Sea, according to BusinessTech.
- See more at: http://afkinsider.com/123805/where-millionaires-live-in-south-africa-is-changing-watch-the-small-cities/#sthash.dkz9Wrl8.dpuf
The traditional way was the property section in the local newspaper. Apart from being very expensive it is totally outdated.
Estimates indicate that 92% of buyers start their search for a home online and then only contact the listing agent to view the home.
You can list your own home on some sites at a cost of over R 2300 for six months.
Your local real estate company will list your home on their corporate website and maybe on other portals.
At Olr-sa.com we not only list your home on our portal but also on Property24.com an agent only portal receiving over 3 times more visits that any other portal in SA, but we will also regularly feature your property on our social media platforms.
Exposing your home to millions of people nationally and internationally.
For a nominal fee of R 975 – once off until sold!
To whom it may concern
I wanted to send a special thanks to the OLR team for their expert assistance in selling my property online, the site was easy to use, all the documentation was signed online, meaning I never had to go through the normal hassle of running around signing.
While at first I must admit I was sceptical, in the end it proved to be the easiest thing in the world!! To add, I wanted R600k for the plot, with OLR I was able to plac it on the market at R610 000 making it more attractive to buyers without impacting my bottom line, going through an agent would have meant I would have had to market it at around R645 000 to get the same results!! As far as I am concerned OLR is the ONLY WAY to sell property!! Brendan Kotze - Fourways