Housing Review Q3 2016
Absa - South Africa
The property market
Trends in and the outlook for the economy, household finances and consumer confidence will continue to impact the property market in terms of demand and supply conditions, buying patterns, market activity, transaction volumes, building activity and mortgage providers’ risk appetites, lending criteria and market strategies. These factors will eventually be evident in growth in household mortgage balances, which is expected to remain subdued in the rest of the year and in 2017.
Based on the economic and household sector-related trends and expectations, nominal house price growth is forecast at between 4% and 4,5% for 2016 and 2017, with the risk of price growth remaining on the downside over this period. Real price deflation of between 1,5% and 2,5% is expected for this year and next year on the back of the abovementioned forecasts for nominal house price growth and the headline consumer price inflation rate.
The outlook is for residential building activity and levels of confidence across the building sector to remain subdued over the short to medium term, which will be the result of expected trends in the economy and the household sector.
Housing Review Q3 2016
Green buildings catching on in South Africa
Harcourts - South Africa
South Africans are increasingly opting for green property solutions in both their residential and commercial investments. This is excellent news for property values in the future, and is increasingly setting the standard for planning and construction.
According to a recent study of industry stakeholders by US-based construction think-tank Dodge Data and Analytics, “green building” – that is, designing buildings to limit their environmental impact – is making strong headway in South Africa. It estimated that around 41% of the country’s construction activity in 2015 was green. This was the highest of the 13 countries surveyed.
The countries surveyed include both mature markets for green solutions (such as Germany and the UK), and emerging markets (such as India and Colombia). The average level of green construction activity across all 13 was 24%.
Why municipal elections are important for property owners and investors
SA Commercial Prop News - South Africa
Local government plays a major role in governance and the provision of basic public services in the country. Whoever governs the municipalities holds the key to South Africa’s success and attract property developers and investors.
SA has many well-run municipalities, but equally, there are those that are struggling because of poor management, corruption or a lack of adequate resources.
Stakeholders in the Commercial Real Estate industry represented by the South African Property Owners’ Association (Sapoa), have been seeking for a constructive engagement with Government the past years.
SA Commercial Prop News
Launch of Privyseal consumer protection initiative
EAAB - South Africa
Following the EAAB's successful pilot of the PrivySeal Consumer Protection Initiative in June 2016, the EAAB requires all registered estate agents to sign up for their Privyseal at www.privyseal.com.
All registered estate agents are required to sign-up for their Estate Agent Privyseal and to insert it into their email signature and website by no later than 31 July 2016.
Your Estate Agent Privyseal distinguishes you from non-compliant and unregistered estate agents and serves as an always up to date and verified business card.