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14 June 2012

Johannesburg valuations jump up by 100% without warning

iolproperty - South Africa
Johannesburg homeowners are panicking. Without any notification, property owners have started receiving notices from the City of Joburg informing them that their property valuations have been updated - with some increases between 75 and 100 percent.

Rates are based on these valuations, and the increases are going to result in massive hikes of more than double the current inflation rate and will be difficult for pensioners and those on fixed incomes.

Neither the supplementary valuation roll nor the objections form are on the City of Joburg website.

These should have been online since May 29. They are also available from municipal offices.
iolproperty.co.za

Unexpected offers to purchase could increase
Moneyweb - South Africa
As supply wanes.

As more and more buyers enter the market and demand for property increases, there is a good chance that demand could soon outweigh the current market’s supply of homes.

If homes that are currently on the market do not meet buyers’ criteria, we could soon follow the trend in the US, where frustrated house hunters are making offers on homes that are not on the market. Although this is usually in the top-end sector of the market, unexpected offers on lower-priced properties have become more popular as supply wanes. The trend has come about as a result of the inventory of property on the market shrinking, while consumer confidence and the desire to take advantage of favourable buying conditions increases.

Some regions in South Africa have already reported seeing a shortage of certain type of properties.

If the trend does grow locally, it is likely that there could be property owners getting an unexpected offer to purchase even though they have not considered selling their homes. Given the nature of this kind of offer, it is likely to be a price that may exceed the current market value and could be worthwhile considering.
moneyweb.co.za

Property capital flees incompetence
BusinessDay - South Africa
SA is losing billions rands worth of commercial property investments due to municipalities’ inefficiencies and corruption, prompting property developers to seek opportunities elsewhere on the continent, and in the UK, Germany and Australia.

That means SA is losing investments and the jobs they create, developers say.

Last week, one of SA’s leading listed property companies, Resilient Property Income Fund , said it would stop its development operations in SA, with CEO Des de Beer saying it takes "six years to do developments in SA", whereas in Europe comparable developments could be completed in just two years.
businessday.co.za

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