Property Professional November/December 2014 by Property Professional

DEVELOPMENT STANDARDS SET FOR 2015

BEE SUCCESS STORIES HABITS OF

SUCCESSFUL AGENTS

THE CRYSTAL BALL DEBATE

2015

PROPERTY MARKET PREDICTIONS The Practitioners Bill: has time run out? FIND OUT ON PAGE 24

NOVEMBER/DECEMBER 2014

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I am sure that every year I say the same thing: Wow this year has flown! But it really has.

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It has been a busy year for the South African property industry, with some hurdles and challenges, like the NQF qualifications debacle with the SSETA, which affected many

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agents and their ability to obtain FFCs. There have also been some more positive obstacles,

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like the reported shortages of stock in the main metro regions and many agencies reporting solid results.

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Does this mean that the market is about to turn? Some think it may be on the cusp of changing into a seller’s market, while others expect that the buyers will remain in charge for a while longer. And the year ahead? This time last year, industry experts all agreed that 2014 would be a good one for the property industry, and to date they haven’t been proven wrong.

Shaun Minnie 083 629 6081 shaun.minnie@thecreativegroup.info EDITOR Michelle Funke

Looking ahead to 2015, many property professionals believe that despite ongoing

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challenging economic conditions, access to finance and rate increases, politics and, of

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course, the Property Practitioners Bill - never mind the ever-changing landscape of the property market and the way in which business is conducted – the year ahead will continue

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to show stability and a gradual upward trend. Our special feature running over pages

Sarah Steadman

14-20 provides some great insight into what is expected to happen in property in the

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12 months ahead.

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To prepare agents for making the most of the opportunities that present themselves in the year

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ahead, we look at the top habits of successful agents in this issue. The rental market, it is said, is expected to continue doing well, especially in the metro areas, where there are stock shortages, as well as the continued pressure on consumers wanting to purchase a home but who are unable to afford to. We take a look at new rental reporting trends that are set to make managing agents’ and landlords’ lives a lot easier.

Nikki Barnard nikki@propertyprofessional.co.za ACCOUNTS & FINANCE Nicolette Lubbe 011 476 6293

In this issue we also find out more about successful BEE stories in the real estate realm, as

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well as SAPOA’s development standards for 2015 and architectural achievements in 2014,

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among a host of other news, tech reviews and interesting snippets. As always, we hope you enjoy paging through this edition of Property Professional and look forward to connecting with you through our website, www.propertyprofessional.co.za, or on social media.

MICHELLE FUNKE

michellef@propertyprofessional.co.za

Disclaimer: The publisher of this magazine gives no warranties, guarantees or assurances and makes no representation regarding any goods or services advertised within this edition. © Copyright Property Advertising Joint Venture. All rights reserved. No portion of this publication may be reproduced in any form without prior written consent from the publisher. The publishers are not responsible for any unsolicited material.

See Page 32 for details.

CO N T EN T S

CONTENTS 04 INDUSTRY NEWS

14 2015 PROPERTY MARKET PREDICTIONS 22 HOW MUCH COMPETITION IS GOOD FOR YOU? 26 MARKET SHARE

28 HABITS OF SUCCESSFULL AGENTS

P R E S E NTATIO NS

GOALS AND PLANNING

34 BEE SUCCESS IN THE PROPERTY INDUSTRY 38 ARCHITECTUAL ACHIEVEMENTS S EL F - EVA L U AT E

R O LE P LAY

42 RENTAL REPORTS REVOLUTIONISED 46 SAPOA 2015 STANDARDS

50 NEW AGENTS ON THE BLOCK 54 TOP PERFORMING AGENTS 58 TECH TOOLKIT 60 DEVELOPMENT UPDATE 64 WORD ON THE STREET

Joining forces to create a RENTALS powerhouse The Chas Everitt International property group and Lighthouse property group have now joined forces under the national Chas Everitt Property Rentals banner. Lighthouse converted its sales team to Chas Everitt International a while back, and now it’s letting, commercial and auctions divisions will also be part of the group. However, while the name on the door will change, the people behind the highly successful Lighthouse group remain the same, with founder and CEO Greg Harris now also taking up the role nationally as CEO of Chas Everitt Property Rentals. When asked why, as an existing leader in the KZN property rentals market, he would choose to partner with Chas Everitt as opposed to any other major property specialists in SA, he had this to say: “The idea first arose when we noticed that our operations were very similar in terms of vision, values and commitment to ethical business practices. With Lighthouse being the largest non-franchised estate agency in Umhlanga we have been approached by many big brands over the years but Chas Everitt just stood out. We are like minded in our approach and also a family values-based business, so it wasn’t a difficult decision for us to make - seeing that Chas Everitt also has a strong, established SA network and an enviable reputation to match.” Meanwhile franchising director of the Chas Everitt International Property Group, Barry Davies, says this is a “best of breed” merger, combining the collective insight, experience and expertise of Chas Everitt and Lighthouse into one powerful national brand under the Chas Everitt Property Rentals banner, to the benefit of landlords and tenants across SA. “We have always held that we would need specialists, hands on expertise and a solid systemised franchise model to deal with the intricacies of rentals professionally. Greg and his team at Lighthouse have built a great company over the years, with a first-rate reputation in KZN and Gauteng. They ticked all the right boxes, and Greg also has the requisite expertise and coal-face experience to lead the new rentals group. This is an exciting new chapter in our history.” There are several positive spinoffs from the merger, including service delivery and growth of the new rentals company beyond the ordinary scope of the separate entities, Harris says. “With the strength of Chas Everitt in Johannesburg where majority of our investors and tenants reside, and in the Western Cape, there will be benefits not only to our partnership, but also to landlords, tenants and other stakeholders.”

CALL GERHARD KOTZÉ 011 801 2500 • 082 447 5698 gerhard.kotze@everitt.co.za

The new group’s holiday letting manager in Umhlanga, Nicolas Dekker, is equally optimistic. “I’m very excited about being able to reach the larger market that Chas Everitt opens to us with it’s high visibility in Gauteng, as this is our major tenant base. Not only do I see positive growth with regards to more holiday tenants, but also a greater possibility of property referrals being added to our portfolio.” Paula Harding, longstanding client services manager for Lighthouse, also strongly favours the move. "Having worked closely with the management team from Chas Everitt over the past 18 months, they are extremely professional and we share the same values. This merger will extend our influence outside of KZN and bring us the additional exposure from the 100-plus national Chas Everitt franchise and license network. We look forward to an exciting future together.” The rentals manager for Lighthouse’s Umhlanga branch, Julie Pillay, is equally positive about the merger. Having been with the company for well over a decade, she has been instrumental in formalising many of the group’s systems. "The merger with Chas Everitt has brought with it a tremendous potential for growth and development both in systems and procedures as well as in enhancing the customer experience. Our focus is on ensuring that our EverRent© software, our add-on products and the entire package - coupled with the same staff clients have become familiar with - will continue to deliver the best service possible. Challenging but exciting times are ahead and I welcome the opportunity to embark on this journey under the Chas Everitt banner." The new rental company will continue to make clients’ needs it’s top priority, and they will benefit from Chas Everitt’s national footprint and decades of experience. At the same time, the success of Lighthouse in the Durban, Umhlanga and Ballito rental markets will now be incorporated into the DNA of Chas Everitt Property Rentals, allowing for the market at large to benefit from this expertise. As the Chas Everitt and Lighthouse brands join forces, the resulting Chas Everitt Property Rentals group will be underpinned by the same people who have already earned the respect of the market for a number of years. The dynamic and hardworking teams are proud to work together and share a common vision.

CHOOSE A BRAND THAT GIVES YOU OPTIONS

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INDUSTRY NEWS ECONOMIC CHALLENGES MAKE THE BUSINESS IMPERATIVE FOR GREEN BUILDINGS EVEN STRONGER With rising operating costs and the economic

more aware of the need and have made such

Reynolds says that there are also advantages

slowdown in South Africa likely to have an

product available.”

for developers of green buildings from a

impact on commercial property developments

financing perspective. “The higher rentals and

within the next few months, it is an opportune

Reynolds anticipates that green properties are

increased capital values mean developers and

time for developers to explore the business case

likely to experience lower vacancy rates in the

owners can often attain a better credit rating

for green buildings further. That is the view of

future and potentially levy higher rentals, as

and increased access to borrowings.” He adds

Ken Reynolds, regional executive Gauteng,

buildings that are designed to accommodate

that Nedbank, as part of its Fair Share 2030

Nedbank Corporate Property Finance.

energy efficiency and carry unique features that

programme, is committed to ensuring 1% of its

focus on environmental sustainability are likely

lending, or R6-billion, is allocated to future-

He says that increasingly there are significant

to become more attractive to tenants – across

proofing the country, which includes socially

advantages to develop new buildings or

commercial, retail and residential property.

responsible lending and carbon footprint

redevelop existing buildings along green

reduction. “The financing of green buildings

principles. “One of these is the reduction in

“Many corporates are insisting on having

is therefore a big part of the bank’s strategy.”

operating costs that green buildings can deliver.

a green rating on their buildings in order to

This lending is to be done within the bank’s

Already, Nedbank has found that building

reduce their carbon footprint, improve staff

normal lending criteria.

or retrofitting properties using green design

working conditions and project a certain

principles has the ability to reduce operating

image. In addition, lower utility costs on these

He adds that with Nedbank already leading

costs by around 30% per year.”

buildings means owners can charge more for

the way in occupying green buildings such

the base rental, while still maintaining flat net

as those in Sandton, Durban and Pretoria,

Reynolds adds that technological developments,

rental costs for tenants. As a result, premiums

as well as the recently occupied Nedbank

cheaper input costs on green materials and

in net rentals of up to 10% are achievable and

Lakeview (JHB) and soon to be occupied

higher electricity tariffs mean that organisations

the capitalisation rate applied to the property to

Nedbank Newton Junction and Majestic, the

are often able to recoup the cost of green

derive its value may show an improvement of

bank has first-hand experience – as both a

designs and construction within a three-year

up to 50 points.”

financier and occupier – of the commercial

period. “The market has moved on when it

benefits of green buildings. “We back these

comes to the upfront costs associated with

initiatives and believe everyone should be

green buildings. In the past, there was a premium to pay for developing Green Star buildings, possibly as high as 5% for a four-

Ken Reynolds, regional executive Gauteng, Nedbank Corporate Property Finance

using green principles in the development of their buildings.”

star building. However, this premium has

He advises that for developers looking to

substantially diminished.”

build or redevelop a building along green principles, it is crucial to incorporate these

For example, previously there was virtually

elements at the beginning of the process.

no payback from installing photovoltaic cells.

“There are many elements that are inexpensive

Now it is possible to get a payback within a

which can be implemented to improve a

five-year range. Historically, there was limited

building’s Green Star rating. However, trying

green product such as eco-friendly paint on

to incorporate green elements halfway through

the market, therefore developers had to pay a

a development can be extremely difficult. It is

premium for these. That, however, is no longer

therefore important to bring in the right team of

an issue, as suppliers across the board are

experts to assist right from the start.”

Chas Everitt boasts robust GROWTH during 2014 The only thing one can ever really be certain of in the real estate market is change, and we have certainly had plenty of that in the past year - fortunately mostly favourable as far as the Chas Everitt International property group is concerned.

Sandra van der Merwe, doyenne of the Polokwane real estate market, says her rationale for making the change to Chas Everitt International was that she wanted to expand her existing operation and saw how the group’s “brilliant business systems and range of marketing platforms could facilitate this”.

In our business, both unit sales and home prices continued to rise, which boosted turnover by 31,8% compared with the previous 12 months - and meant that we were able to help more than 5360 South Africans find and buy their dream homes.

Rose McFall, who heads up a multimillion-rand agency with a very substantial share of the Somerset West market, says she chose to join Chas Everitt International because of the group’s outstanding marketing platforms and excellent referral system that is boosting buyer enquiries from all over the world.

We also implemented some awesome new technologies to assist both our franchisees and our clients, launched our stand-alone rental brand, added more than 20 new outlets to our residential sales network and, best of all, employed an additional 200 estate agents around the country. Now that’s what we call growth! Launched in April, the new Chas Everitt Property Rentals brand is built around our own EverRent© property management program. And to date, this opportunity has already been taken up by more than a dozen new rental franchisees in some of the busiest rental markets around the country. There are now Chas Everitt Property Rentals franchises in place to assist landlords and tenants in Amanzimtoti, Bloemfontein, Centurion, Hoedspruit & Tzaneen, Kuruman & Kathu, Mossel Bay, Polokwane, Phalaborwa, Vryburg and Wellington. There are also Chas Everitt Property Rentals offices serving the Northern Suburbs, City Bowl and Atlantic Seaboard areas of Cape Town, the Glenvista, Randburg and Sandton markets in Johannesburg, and the West Rand. In the past year, we have also been privileged to have some exceptional new franchisees join the Chas Everitt family, including Sandra van der Merwe in Polokwane, Rose McFall in Somerset West, Ferdi and Lee-Anne Labuschagne in Newcastle, and Steve Tredoux, Robyn Van Rensburg and Bruce Steele-Gray in Kenton-on-Sea, who all converted their already very successful agencies to our brand.

CHOOSE A BRAND THAT GIVES YOU OPTIONS CALL GERHARD KOTZÉ 011 801 2500 • 082 447 5698 gerhard.kotze@everitt.co.za

“The Chas Everitt International emphasis on personal service was also a big factor in my decision. Although it is a group with a formidable presence in the local market, people don't get lost in a corporate maze. It is a perfect fit with my own family-oriented approach to business.” Ferdi and Lee-Anne Labuschagne, whose agency previously operated under another national brand, say the change-over to Chas Everitt International yielded immediate results. "The reception in the local market has been very favourable and we experienced a dramatic and immediate increase in sole mandates in the upper levels of the market." Meanwhile our ground-breaking Notebook© licence concept continues to be well received all over the country. This concept is specifically designed to give top-performing agents and independent agencies in defined areas and smaller centres the opportunity to derive the same benefits as a franchisee from trading under a strong national brand, but at a much reduced entry and operational cost. And the proof of its appeal is that there are currently almost 40 Notebook© licensees successfully operating all around SA, with the latest to join the group being Derek Tavendale in Zinkwazi on the KZN North Coast; Este Dul in Schoemansville on the Hartebeespoort Dam; Sonja Thielen in Stellenbosch and Linda Erlank in Kimberley.

Page 6: I N D U S T RY N EW S

POWER OF COMMUNICATION An internal communications platform recently introduced by Realtors International is set to play a lead role in the small but dynamic group realising its ethos of the ‘power of one’. Realtors International chairperson Manja Kritzinger says that one of the challenges of an association of like-minded but independent realtors is being able to interact and communicate effectively so that agents can enjoy the benefit of the collective. “While

“THE INTERNAL COMMUNICATIONS SYSTEM HAS MANY BENEFITS AS FAR AS BUILDING A COHESIVE REALTORS INTERNATIONAL BRAND IS CONCERNED, BUT, THROUGH DEVELOPING RELATIONSHIPS AND TRUST BETWEEN AGENTS, THE ULTIMATE GOAL IS TO SEE INCREASED REFERRALS AMONGST AGENTS – THAT’S WHAT FRIENDS DO,” Manja Kritzinger, Realtors International chairperson

Realtors International licensees and agents are bound by a vision, values and brand, each

but however cutting edge the technology is, it

branch is independent, extremely busy and

will be the Realtors International agents who

generally owner-managed. We cannot call

will make it work – that’s a big step towards

meetings or arrange networking functions as

unrolling the ‘power of one’,” says Jacques.

frequently as we’d like to. The answer was to build an internal communications platform where agents from different regions could meet, have real conversations, build relationships,

NEDBANK CAPITAL FUNDS STATISTICS SOUTH AFRICA’S NEW HEAD OFFICE ACCOMMODATION PROJECT

share experiences and celebrate successes in an online but secure environment,” says Manja. Nedbank Capital has acted as the mandated

operations into one central 59 000m² building,

The most important output will be the passing

lead arranger and funder of the R1.4-billion new

which will streamline processes and achieve

of referrals from one office to the other. “The

head office accommodation project for Statistics

greater efficiencies.

internal communications system has many

South Africa (Stats SA). This is the latest project

benefits as far as building a cohesive Realtors

finance deal arranged by an investment bank

The new R1.4-billion building is currently under

International brand is concerned, but, through

for a government accommodation building on a

construction near Freedom Park in Tshwane

developing relationships and trust between

Public Private Partnership (PPP) basis.

and will include a 24/7 data processing centre

agents, the ultimate goal is to see increased

as well as a statistics training centre. Two

referrals amongst agents – that’s what friends

Nedbank Capital provided funding for the

hundred and twenty people are employed on

do,” says Manja.

project amounting to R1.15-billion, with

the construction site and this is expected to rise

the equity being provided by Dipalopalo

to 1 300 when the project reaches its peak in

Project manager Jacques Botha, Realtors

Concessions (Pty) Ltd comprising WBHO

November 2014.

International’s market and sales analyst,

Construction (Pty) Ltd, Royal Bafokeng

says that concerns that some of the agents,

Holdings, Servest, Vulindlela Holdings, Crowie

Mike Peo, head of Infrastructure, Energy &

particularly more experienced agents bordering

Concessions and Fikile Concessions. The

Telecommunications at Nedbank Capital, says:

on the edge of technophobia, would not take

consortium was awarded the tender for the

“Due to the extensive due diligence requirements

readily to the new ‘meeting place’ proved

design, financing, construction and operation of

and complex legal arrangements associated

largely unfounded. “The prospect of referrals

the new head office building to accommodate

with deals of this nature, such transactions have

and experiencing the Realtors International

Stats SA under a 26-year PPP agreement.

historically taken a number of years to close.

network proved stronger than the fear of the

However, we are proud to have closed this PPP

online world for most. We worked with a team

Stats SA currently operates out of three separate

in record time. This was achieved through a

of communications specialists and held training

buildings, two of which were located in the

huge degree of commitment by Stats SA coupled

workshops at all of the Realtors International

Tshwane City centre and one in Pretoria West.

with the extensive experience of the project

offices in the Western Cape. It is early days,

This building will allow them to consolidate their

sponsors and the project advisors.”

Page 7: I N D U S T RY N EW S

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PROFESSIONAL INDEMNITY COVER FOR ESTATE AGENTS

Property professionals operate today in an

The Estate Agency Affairs Board (EAAB) has

may never see a claim filed against them,

environment of ever increasing requirements

arranged professional indemnity cover for all

but litigation can become expensive and

for better transparency, disclosure,

registered estate agents, brokered through

protracted. This is especially true when a

accountability and governance. Professional

Aon South Africa, insurance brokerage and

professional estate agent is dealing with

indemnity cover in the real estate world is

risk advisors. The cover is based on an ‘each

properties in the upper end of the property

very similar to medical malpractice cover for

and every’ claim basis and responds to the

market that are valued from R5-million

doctors. While the sale of a client’s home

legal liability of all registered agents in the

and upwards,” says Jooste.

may not require the precision of a surgeon,

course and scope of their business as a result

even a simple property deal can potentially

of an error, negligence and/or omissions.

Estate agents will greatly benefit from topping up their professional indemnity cover in

be fraught with pitfalls that can land even the most diligent real estate professional in a legal

It is important to note that a claim is only valid

accordance with the property market values

conundrum.

if a complaint is lodged by an independent

that they operate in. “Many estate agents

third party, which means that the intention

who enquire about a professional indemnity

of the cover is to protect consumers at large.

policy are skeptical about its merit, assuming

The cover typically comes in handy when a

that only careless professionals have to worry

dissatisfied buyer or seller lodges a claim

about a claim being lodged against them.

against an agent for giving the wrong advice,

This is not always the case, and even if an

for an incorrect property evaluation, listing

agent has acted in full accordance with the

the property incorrectly, failing to disclose

law and professional standards, if a claim

defects in a property, for misrepresentation or

is lodged against them, they will need to

for a breach of contract, to name a few. As

defend their position and actions in a legal

the name suggests, professional indemnity

process, the defence costs of which can be

cover does not cover claims of outright fraud

onerous,” explains Jooste.

or criminal acts. The only loss that may be recovered in the event of a claim is the actual

“A practitioner without PI protection would

financial loss that the claimant may have

be personally liable for these costs and would

suffered as a result.

run the risk of having all their assets attached and facing financial and reputational ruin.

According to Jenny Jooste of insurance

It is therefore essential to take the best

brokers and risk advisors Aon South Africa,

possible precautions when it comes to your

professional indemnity insurance essentially

legal exposure in the property market, as it

provides an estate agent with indemnity in

simply is not worth putting your reputation

respect of legal liability arising out of the

and livelihood at risk,” says Jooste.

practice of their profession. “Indemnity cover

Jenny Jooste, Aon South Africa

“INDEMNITY COVER WILL INCLUDE THE PROFESSIONAL’S OWN LEGAL COSTS AS WELL AS ANY COMPENSATION AND LEGAL COSTS THAT ARE DUE TO THE CLAIMANT, UP TO THE VALUE OF R1-MILLION; WITH AN EXCESS PAYMENT OF UP TO A MAXIMUM OF R25 000 PER CLAIM, WHICH IS THE RESPONSIBILITY OF THE AGENT, BOARD OR COMPANY INVOLVED”

will include the professional’s own legal costs

The services of a professional broker

as well as any compensation and legal costs

could well prove to be invaluable in

that are due to the claimant, up to the value

evaluating your exposure to risk as an estate

of R1-million; with an excess payment of up

agent. “A professional broker will be able

to a maximum of R25 000 per claim, which

to advise whether your professional indemnity

is the responsibility of the agent, board or

cover is adequate to cover your exposure

company involved,” explains Jooste.

of risk. Your broker will also be able to confirm what exactly you are covered for

While cover of R1-million may sound

under the EAAB’s professional indemnity

excessive, it is a drop in the ocean in

scheme and advise you of any exclusions

comparison to South Africa’s climbing

and conditions that may exist on your

property values. “Many estate agents

policy,” concludes Jooste.

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To find out how PayProp can help you run a safer and more efficient rental portfolio, visit www.payprop.co.za or call 087 820 7368.

Page 10: I N D U S T RY N EW S

SOUTH AFRICANSâ&#x20AC;&#x2122; PROPERTY SEARCH PREFERENCES UNCOVERED

The growth of online technology began

other property websites or newspapers.

This highlights the different markets competing

skyrocketing a few years ago and the

Delving further into the details uncovered

for mind share around the sale of property

development has not slowed since, with

that Property24.com is seen to be the best

and the importance of building a strong brand

Internet penetration in South Africa reaching

property portal by 58% of respondents. This

to attract the widest audience of property

40.9%, according to research conducted by

opinion came through even more strongly

buyers, owners and sellers.

Statistics South Africa in 2013.

in the group of respondents who identified themselves as active property seekers,

While there are many options out there for

As access to the Internet increases, whether

and was followed by those who favour

online property searching, the results of this

at home, work or through mobile phones,

Private Property (17%), Gumtree (15%) and

survey clearly indicate what is really important

consumer behaviour changes and adapts

IOLProperty (3%).

to consumers: ease of use, quality listings and

to the new opportunities presented. This is

a wide range of available properties.

something that has been clearly seen in the

In any industry, top-of-mind awareness is key

real estate industry, with a significant shift

to ensuring a business remains successful, and

These elements informed how consumers

towards property buyers making use of online

in the real estate industry there were a number

ranked the various property search platforms,

tools to search for property.

of brands that consumers identified with most

and were also the specific reasons given

often when asked about property. What was

for preferring Property24.com over other

Research into consumer understanding of

particularly interesting was the diversity of

websites.

online property search tools was recently

businesses that consumers mentioned when

conducted by imagineNATION Alliance,

asked to identify property-related products.

Through this research, it has become apparent

an experienced research and marketing

While Property24.com was the most

that when it comes to property searching

consultancy and Southern African Marketing

mentioned property website, finance and

tools, staying current with the most up-to-date

Research Association (SAMRA) member.

consumer goods brands were also identified

technology, paired with a comprehensive

The results were both encouraging, with the

by respondents as being related to buying

marketing strategy, is essential. This is what

clear indication of the level to which South

property. In these segments, brands like FNB,

sets the industry leaders apart as consumers

Africans have adapted to the new tech-savvy

Samsung and Russell Hobbs were top of mind.

continue to further embrace technology.

environment, as well as interesting as one website emerged as a significant leader in the minds of property hunters. The online survey, conducted over a period of five weeks, saw respondents offer insights into the behaviour of South Africans searching for property. Through banners on a range of independent websites, imagineNATION Alliance ensured the statistical integrity of the research. The results echoed the general opinion that more and more people are using technology and online resources in their daily lives. In total, 80% of respondents use the Internet as their primary tool for searching for property, with 63% of people saying that they prefer using property portals (websites that aggregate property listings from a variety of estate agencies or sources) than

THE RESULTS ECHOED THE GENERAL OPINION THAT MORE AND MORE PEOPLE ARE USING TECHNOLOGY AND ONLINE RESOURCES IN THEIR DAILY LIVES. IN TOTAL, 80% OF RESPONDENTS USE THE INTERNET AS THEIR PRIMARY TOOL FOR SEARCHING FOR PROPERTY, WITH 63% OF PEOPLE SAYING THAT THEY PREFER USING PROPERTY PORTALS

CHANGING TO A SECTIONAL TITLE DUET SCHEME The term ‘duet’ scheme is a description for a sectional title development that consist of only two dwellings. Typically, developers create duets on land that cannot be subdivided. A ‘mini’ sectional title scheme is then created, consisting of two sections only and these may be separate dwellings or semi-detached. So, when a client recently approached us with the question whether he can convert his mountainfacing property to sectional title, the one part of the house constituting one unit, and the other a second sectional title unit, the answer was yes, the Sectional Titles Act allows for this. The building work involved with the process will require municipal building plan approval. However, provided the planned building complies with all building line, title deed, zoning scheme and town planning provisions (and certified as such by a land surveyor), no municipal/local authority approval for the opening of the sectional title scheme is required. If it deviates, local authority and or court approval must be obtained. In addition, if there is a bond over the property being developed, the bondholder must consent to the opening of the sectional title register. Owners in these duet arrangements must comply with the Sectional Titles Act. Accordingly, both owners have joint liability, responsibility and use of the common property areas and must agree on and maintain the common property and amenities, insurance and the like. Do you require assistance in this regard? Contact the property law experts at www.stbb.co.za.

MASTERING THE INTRICACIES OF HOME OWNERSHIP

MORE THAN JUST THE PAPER WORK

Page 12: A DV ERT O R I A L

INVESTMENT AND BUSINESS ROADSHOW A SUCCESS The Durban Chamber of Commerce and Industry, in collaboration with eThekwini Municipality and Trade & Investment, KwaZulu-Natal (TIKZN), hosted an Investment and Business Roadshow in Durban on 17 and 18 September 2014.

Local and international qualified private and institutional investors were invited to attend this event to become acquainted with a number of investment opportunities which have been identified for their accessibility and their potential. The event aimed to establish a global bilateral or multilateral intercommunication platform among international and South African corporations, private equity funds, government agencies, financial institutions and investment service suppliers in the Durban area, in order to provide real investment opportunities in what the MasterCard Global Destination Cities Index (2012) rated as the “fastest-growing city in Africa in terms of visitor numbers”. The event was well attended and a wide range of investors and property professionals were treated to some highly informative presentations by the various project owners invited to present their investment projects to the delegation. After the opening comments from Andrew Layman, CEO of the Durban Chamber, the programme commenced with powerful presentations by both TIKZN (Kanyi Ntoko-Gasa, executive manager: Investment Promotion) and Durban Investment Promotion (Russell Curtis, HOD), who both outlined and reinforced KwaZulu-Natal investment intent, vision and values that aim to attract the national and international investor community to our province. This was followed by an update on the Durban Dig-Out Port project by

Cornubia Industrial Estate site tour

Irvindra Naidoo (GM: Group Strategy, Transnet). The presentation outlined the critical need for this catalytic project to proceed, in the context of the anticipated logistics growth anticipated over the next 20-30 years, with slides showing anticipated port layouts and statistical projections to support the need for the development. Delegates were then transported by bus from the Elangeni Hotel on the Durban Beachfront to Dube City, where Tim Hudson (project manager, Dube TradePort) provided a highly informative presentation regarding the various leasehold investment opportunities currently on offer as well as an expansive pipeline of projects coming on stream shortly. This was followed by a trip to the highly impressive Cornubia Industrial Business Estate, a

THD development under construction, with over 90% of phase one already sold out. Greg Veerasamy (development executive, Tongaat Hulett), outlined the overall project status, being a joint venture between THD and the Ethekwini Municipality, with the first phase of the low cost housing component also being visited. Tongaat Hulett head office was the next destination, where further presentations were given regarding the Aerotropolis development plans the

Farah Goolam, Russell Curtis (Durban Investment Promotion), Greg Veerasamy (Tongaat Hulett Developments)

JSE listed company has, which include the Bridge City mixed-use node, the soon to be launched Sibaya and the uShukela Business Park adjacent to the King Shaka International Airport. Day two commenced with a presentation from Pat Conway (project manager, KDC Projects and Developments), who presented his Kings Estate mixed-use industrial, commercial and residential development, also located within the Airtropolis node on the North Coast. This was followed by a slick and dynamic presentation by Dr Sharron McPherson on behalf of the Finningley Joint Venture Development Company. The Finningley Growth Sphere is located on the Durban South Coast and already has investment support from the USA in its quest to offer a substantive, unique and innovative sustainable development model to the province.

Delegates listening to presentations by Greg Veerasamy – Tongaat Hulett Developments boardroom

The Clairwood Racecourse redevelopment project then followed, presented by TC Chetty from Capital Projects. The development will offer much

industrial and commercial investment opportunities available in the

needed back of port logistics space in anticipation of a surge in demand

node following the successful development of the Mpumalanga retail

with the Transnet port expansion plans and will come online as soon as

shopping mall.

various approvals have been completed. To end off a highly informative day, a tired and satisfied group of LIV Village showed a short video clip on its groundbreaking community

delegates were then treated to sundowners and snacks at the Pot & Kettle

initiative based in Tongaat on the North Coast, and its investment needs

in Hillcrest (on the world renowned Comrades Marathon route), before

were strongly endorsed by both Russell Curtis and Andrew Layman as a

heading back to the hotel and drop off.

great CSI opportunity for local and international businesses, grants and funds to participate in.

The Durban Investment and Business Road Show provided two days of well-organised site visits and entertainment along with some exceptional

The final leg of the roadshow involved heading off to the KwaMnyandu

presentations. The message that KwaZulu-Natal, and Durban in particular,

Town Centre Development in Umlazi. Project manager Vuyo Jayiya gave

is an investment destination that stands head and shoulders above

a presentation on the commercial investment opportunities that will be

most other developing countries around the globe was put across in no

coming online, following the successful development of the KwaMnyandu

uncertain terms.

retail mall, with the development heralded as a groundbreaking initiative regarding previously disadvantaged township redevelopment in the

Potential investors/interested parties wishing to attend future investor

region.

roadshows (TBC), need to please email James Arnott on james@arnottconsulting.co.za or cell: +27(0)83 6258078

Delegates then headed off to the Mpumalanga Town Centre Development

to register their interest.

on the N3 Corridor, heralded as KwaZulu-Natal’s future version of Gauteng’s economic powerful corridor, Midrand. Here, Peter Gilmore

For further information on investment projects available for investment,

(project manager, eThekwini Municipality) gave a breakdown of the

please visit the project listing portal, www.kwazuluinvestor.co.za

Page 14: 2015 PROPERTY MARKET P R ED I C T I O N S

THE CRYSTAL BALL DEBATE

2015

PROPERTY MARKET PREDICTIONS

Page 15: 2015 PROPERTY MARKET P R ED I C T I O N S

At the end of 2013 industry experts all agreed 2014 would be a good

this trend should continue into the first half of next year. One thing that is

year for the property industry, and to date they haven’t been proven

encouraging is the significant growth in the new development sector. This

wrong. Despite challenging economic conditions and barely avoiding

increase in supply should stimulate fresh growth for 2015.”

a recession, the property industry has remained stable. The Rode report released by Erwin Rode in May this year showed that market rentals,

Berry Everitt, MD of the Chas Everitt International

industrial rentals and house prices have all maintained reasonable growth

Property Group, predicts: “We are expecting

in the beginning of 2014. But, with lacklustre economic growth, a rise

house price growth to slow down noticeably by

in the interest rate and South Africans under financial pressure, what will

winter next year, due to increasing affordability

2015 bring? We asked the experts to give you their property predictions

constraints on buyers arising from higher living

for 2015.

costs (inflation), higher interest rates and extremely slow economic growth. These constraints, we

WHAT WILL HAPPEN DURING THE FIRST SIX MONTHS OF 2015 IN THE PROPERTY

believe, will outweigh the normal upward pressure

SECTOR?

on prices that occurs when the demand is much higher than the supply of homes for sale – as it is now and is also likely to be at the start of 2015. Tony Clarke, MD of Rawson Property Group, says:

My forecast is thus for house prices nationally to grow by no more than 7%

“The hikes in the interest rate over the course of

during 2015 as a whole. However, different micro-markets will, of course,

2014 and the predicted future hikes (expect up

do better – the metros, for example, are likely to substantially outperform

to 10.5%) will make it more difficult for buyers to

the non-metro areas as people continue to be attracted to the greater

qualify for mortgage finance, which will decrease

economic opportunities they offer.”

sales volumes across the board in South Africa’s property sector. I believe that although sales

Brian Azizollahoff, MD of Capstone Property, says: “It seems that interest

volumes will dip for the remainder of the year, they

rates will remain fairly flat with another 25bps predicted in the short term. I

will still show positive growth during the first six months of 2015. House

have heard the theory that there may not be any further hikes as a result

price growth (which is currently still single-digit) is likely to remain constant

of the African Bank debacle. With the fallout from ABIL’s troubles, there

in the first two quarters of 2015, however, I don’t think the drop will be

is a real threat that the availability of small loans to the mass market will

too significant and in most price brackets, the growth will keep abreast

be curtailed. This has implications for unemployment and growth, and

or ahead of inflation. The property sector is going to face challenges in

consequently the Reserve Bank cannot afford to hike rates. Nevertheless,

2015; however, on the whole, the outlook is still positive and most areas

the environment of higher interest rates has been created and this means

will remain healthy.”

higher yields within the property sector. We are already seeing yields moving up and this will continue into 2015. Office rentals will continue

Richard Gray, CEO of Harcourts, says: “Stock

to soften due to oversupply and slow economic growth. There is good

shortages in the middle price range will continue,

demand for industrial space and in many nodes vacancies have been

but developments will start to fill the gaps. These

reduced to below 2%. The supply of regional retail space has continued

developments will become more prevalent and

unabated and now it is purely a case of retail centres cannibalising each

projects that struggled to sell in the late 2000s will

other.”

become more viable. The market will continue its move to a seller’s market, with reasonable prices

Marna van der Walt, CEO of Excellerate Property

being achieved. Rising interest rates will have a

Services, predicts: “During 2015 it is anticipated

moderate impact on the market, and will dampen some of the growth. First-

that the commercial property market will remain

time homebuyers will continue to provide impetus for the property market.

under pressure, with landlords continuing to

They will create market churn as long as the banks continue lending to

prioritise containment and reduction in operation

them. Bank lending will continue to be cautious, but market share will be

costs. As a consequence, the trend towards utilising

important for them, as they move away from unsecured lending.”

property management companies that are able to provide a broad range of property related services

Private Property’s COO, Simon Bray, says: “One

– all under one roof – combined with cost efficiencies, will increase

thing appears to be true of the post-boom property

exponentially.

market in South Africa, consistency. Nothing particularly volatile has happened in the market

Gradually increasing interest rates is on the cards, with inflationary factors

since the credit regulations of 2008. We see slow

such as utilities costs as well as labour issues likely to remain a general

but steady recovery in transaction volumes and

concern with regard to the economy. However, the commercial property

Page 16: 2015 PROPERTY MARKET P R ED I C T I O N S

“WE STILL SEE SIGNIFICANT ROOM FOR IMPROVEMENT IN THE PROPERTY TRANSACTION PROCESS. THE AVERAGE PROPERTY STILL SITS ON THE MARKET FOR SIX TO EIGHT MONTHS BEFORE BEING SOLD AND, IN THAT TIME, GOES THROUGH A FRUSTRATING CYCLE” Simon Bray, Private Property’s COO

market – including the retail sector in particular – remains resilient due

cycle which we believe could be improved. All sorts of opportunities exist to

to the strong South African shopping culture, even with the constrained

speed this up, including, price education for sellers, estate agent turnaround

consumer disposable income, stricter credit lending criteria and debt issues,

times with buyers, effective marketing and presentation of properties for

which will carry over into 2015.”

sale. We have some innovations in this space that we hope will speed up the process and with it bring real improvement to the overall market in

Adrian Goslett, CEO of RE/MAX of Southern Africa,

2015.”

believes that the interest rates will increase slightly, however, he doesn’t expect this will have any real

Weimar thinks there has been good growth in affordable housing.

negative impact on buying patterns.

“We generally expect this segment to remain robust, given the country’s

“There will also be continued steady improvement

historical legacy and the fact that the fastest employment growth is occurring

in the market with house prices in metro areas

in the public sector, with most of these first-time buyers. A sustained

beginning to rise due to lack of supply.”

and strong improvement in both volumes and prices within the higher to luxury segments requires a more robust economy, greater confidence

Nicky Weimar, senior economist at Nedbank, says: “Over the past four

in property as an asset class and a significant improvement in general

years the residential property market has moved to firmer ground, but

confidence levels.”

the recovery has been painfully slow. On average, property prices are growing at between 7% to 8%, but on thin volumes. Over the past three

Pam Golding’s CE, Andrew Golding,

months, demand for mortgages has improved, and we have seen an

thinks improvement could come from a number of

increased willingness to extend mortgages among the major commercial

sources. The top five in his books are:

banks. While these developments are generally positive, household

• Accelerated house price appreciation off

finances have deteriorated, hit by higher inflation and the long strike in

the back of increased stock shortages and

the mining industry and later in the manufacturing industry. Added to this,

increased buyer confidence.

household debt burdens remain high and debt service costs are rising

•

the demand for and prices of residential property in 2015 as households

The long awaited genuine re-emergence of the second home and leisure market.

given the hike in interest rates. We therefore expect some moderation in •

Given affordability issues, which are a global phenomenon for

tighten their belts in response to pressure on income and higher interest

aspirant homeowners (in particular first-time homeowners), the

rates.”

continued improvement in the buy-to-let market and the strength of the letting market generally.

WHERE WILL THE BIGGEST AREAS OF IMPROVEMENT IN THE PROPERTY INDUSTRY BE?

•

Off the back of stock shortages, the re-emergence of the development market/new build market.

For Clarke, it’s homes in the R800 000 to R1.5-million range that are likely to see the highest price growth in 2015, while other price brackets

•

Notwithstanding rumblings of restrictions on foreign owners in government circles, the potential for increased foreign interest.

are likely to see satisfactory growth. “The more expensive, upper-bracket homes, i.e. homes in excess of R5-million as well as holiday homes will

Chris Renecle, MD of Renprop, says:

probably not see significant growth.”

“I hope that the financial institutions have realised their error in focusing so much on the unsecured

Bray says: “We still see significant room for improvement in the property

loan market. We hope that they will, despite Basal

transaction process. The average property still sits on the market for six to

requirements, shift their focus to start lending

eight months before being sold and, in that time, goes through a frustrating

more freely in the secured finance market.”

Tribute to our dear friend, colleague and dedicated teacher Gerhard van Rensburg 4 May 1967 to 15 August 2014 Leapfrog National Franchise Sales and Training Executive

Our dear colleague, Gerhard van Rensburg, passed away suddenly and unexpectedly in Cape Town on Friday, 15 August 2014. The outpouring of love, gratitude and fond memories which we have all witnessed is a testimony to the way this singular figure in the real estate industry touched so many lives. The Leapfrog family is feeling a deep sense of loss and disbelief. It is impossible to believe that Gerhardâ&#x20AC;&#x2122;s sincerity, integrity, calm and dignity will no longer enrich our national meetings; that his experience, wisdom and kindness will not be available to all his colleagues, and that his commitment to the real estate industry will not continue to drive his passion for training and knowledge. We are united in our grief and our memories of his incredible spirit. Gerhard was well-loved and admired for his enduring commitment to uplifting the standards of training and education in the real estate industry. He was an activist in the true sense of the word and dedicated his life to serving the industry. His career path in real estate sector was impressive. Gerhard started as an estate agent in 2000, became a principal of his own estate agency in 2009 and obtained his NQF Level 5 qualification in 2011. Over the years Gerhard worked in just about every position available in real estate after which he found his true passion â&#x20AC;&#x201C; training. He founded Bowtie Solutions,

a real estate training and development business where he trained many of our leading agents. Gerhard joined the Leapfrog Property Group in January this year as our National Franchise Sales and Training Executive. He was a tremendous ambassador for both the group and our industry. Among the things Gerhard will be remembered for is the way he conducted his training courses. His amazing smile, engagement, honesty, directness and passion built us up to achieve more that we might ever have believed we were capable of. Gerhard helped people face up to realities that mostly turned out to be far less tough/ far easier than they had believed them to be. He achieved that rarest of achievements â&#x20AC;&#x201C; putting more into others than he took out and in so doing he made a difference. We all wish we had more like him. But he was one of kind. There is no doubt Gerhard was a quiet giant of our industry. He was a gentleman; a thoughtful and intrinsically decent human being with an inquisitive intellect and an abundance of personal charm. It was a privilege to know and work with him. His rare talents, abounding kindness and indomitable spirit have been taken from us far too early. We extend our deepest condolences to his partner, Pieter, his family and his many friends. We will miss you Gerhard, but your legacy will live on.

Page 18: 2015 PROPERTY MARKET P R ED I C T I O N S

In the commercial sector, Azizollahof says: “Small retail centres with a

compact homes will continue to be in high demand, both for affordability

grocery anchor and a few line shops in areas that have previously had no

reasons, but also for security and the low maintenance required. Across the

retail will continue to flourish as local residents utilise these centres to save

board, security will continue to be one of the biggest drivers, at the top end;

transportation costs.”

the move to security estates is likely to continue strongly and such estates will show strong demand and good growth as a result.”

Van der Walt says: “With regard to improvement in the commercial property market, the fundamentals need to stabilise before business confidence

Goslett believes that gated communities are still on the rise. “Security in South

can increase. Landlords will continue their endeavours to retain tenants

Africa will continue to be a major factor. Homes with fewer maintenance

by offering competitive rentals and generous tenant installations. From

requirements continue to be popular – mainly due to increased utility/

an investment perspective, office vacancies are still likely to be an issue

municipal costs,” he adds.

and buyers are far more risk averse than a year ago. The best returns are still going to be with long-lease properties and with a strong cycle of

Timothy Akinnusi, head of Sales and Customer Value

development in key office nodes throughout South Africa. With more stock

Management at Nedbank Home Loans points out that

available on the market, businesses are thinking smart and there’s a marked,

the growth rate in different housing types is depending

ongoing trend towards consolidation in order to conserve costs – in other

on the market segment (affordable to middle market)

words, relocating their offices or operations onto one site.

and the development cycle of the community. “As an example, in the newly developed urban areas, the

For warehousing and distribution users, easy access to transport such as

fastest growing housing type is gated communities

major highways and airports will remain a priority as they continue to seek

and mixed housing. This growth is driven largely

locations that are central to their specific operations and close to their client

by the increased need for security and community living that enables an

bases. These include areas such as Midrand and Centurion. Modern space

ecosystem of everything in one area, from hospitals and schools to retail and

is increasingly in demand and we see mainly two types of users – flourishing,

entertainment facilities all within a 3km to 5km radius,” he says.

high-profile, growing businesses typically look for larger, more practical modern space, and those who are moving to smaller, more economical

When asked about which areas he would recommend for investment during

space. As a result, large properties with wasted space, i.e. low roofs and a

2015, Akinnusi said it would be difficult to name areas; however, he would

prevalence of supporting structures like pillars taking up floor space, will stay

suggest investing in those that are experiencing rejuvenation with a good

on the market longer.

prospect of future infrastructure development in the area. “As the middle class in South Africa continues to grow, so the need for housing over the next five

Investment in industrial property is focused towards the industrial nodes that

to 10 years will continue to grow. The growth will put pressure on the supply

are central, offer value for money and where new ground is being opened

of housing in quality areas, which will result in real house price growth and

up, such as Waterfall, and to some extent around airports. The trend in

hence good investment value in future,” he says.

the industrial investment market will remain very much around long-term efficiencies and new green facilities.

WHAT WILL BE THE MOST INFLUENTIAL FACTORS FOR DETERMINING THE PROPERTY INDUSTRY’S RESULTS IN 2015?

In terms of legislation, the Protection of Personal Information Act (POPI), which provides for the constitutional right to privacy and regulates the way

The most influential factors that will determine the property sector for 2015

such information is processed, has implications for the commercial property

according to Renecle will be the political landscape and the financial

sector and this act needs to be taken into account by all stakeholders.”

institutions. “Increasingly tough legislation around the property market will contribute to an already difficult business environment. The growth, or lack

WHICH TYPES OF HOUSING WILL SHOW THE MOST GROWTH IN 2015?

thereof, in the South African economy and therefore the property market will largely depend on what happens in the political and financial lending

Samuel Seeff, chairman of Seeff Properties, says:

arenas. We should be following the rest of the world in terms of post

“The affordable sector, sub-R1.5-million, is likely

recession growth, yet we are not,” he says.

to continue to see the strongest demand, but this is, of course, where interest and cost hikes are felt

Bray says: “A healthy supply of credit remains the biggest factor driving

the strongest. Similarly, the low economic and job

market growth. If banks continue to grow their lending book as we have seen

growth, high household debt levels, poor credit

them do this year, then 2015 should be a good year for the property market.

records and difficulty in obtaining home loan finance

However, as the major banks are multinational businesses, they continue

are likely to remain a challenge for this, which is the

to be at risk from the global recession; this as well their recent credit rating

bulk of the property market. But, in sectional title properties, smaller, more

downgrade by Moody’s may put pressure on their appetite to lend.”

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Page 20: 2015 PROPERTY MARKET P R ED I C T I O N S

”THE MPC IS EXPECTED TO INCREASE INTEREST RATES BY ANOTHER 25 BASIS POINTS BEFORE END 2014, AND BY ANOTHER 100 BASIS POINTS IN 2015” Nicky Weimar, Senior Economist At Nedbank

Herschel Jawitz, CEO of Jawitz Properties, adds

The second bill that will definitely affect the property market if it is passed is

to this: “Aside from bank lending, interest rates

the one proposing 50% black ownership of all real estate companies. This

and consumer confidence will be the two key

is bound to be resisted by the industry as it defeats the process of the free

factors in the market. Interest rates obviously impact

market and could cause many real estate companies to close and many

on affordability, especially for first-time buyers

real estate professionals to simply take their business elsewhere. There is no

who are most interest rate sensitive. If this market

denying that there is a need for transformation in the real estate industry,

slows, it will impact on the overall recovery of the

but this cannot happen by force. Government should rather think about

residential market as the market must recover from

incentives such as sponsorships for new recruits to the industry.”

the bottom up! The other factor is consumer confidence. Residential property is a long-term buying decision and if consumers are feeling less confident

We asked Nicky Weimar, senior economist at Nedbank, if she thought the

about the economy of their personal circumstances, long-term buying

interest rate would remain the same, drop or increase. “The Reserve Bank’s

decisions may be deferred. Interestingly, according to the latest FNB/BER

Monetary Policy Committee (MPC) has made it clear that interest rates are

consumer confidence index, consumers are feeling more confident about

currently too low given trends in inflation, which is above the Reserve Bank’s

where they will be in 12 months’ time versus how they are feeling now

upper 6% limit and likely to remain outside the target band for some time

and that is positive for the market. The real challenge for buyers is that with

to come. The MPC has indicated that South Africa is in a tightening rate

property prices rising, getting into the market is only going to become more

cycle or a rising rate cycle. Given these statements, one has to conclude

expensive or difficult, whether it be higher deposits required or affordability

that interest rates will increase further during the remainder of 2014, but

of repayments, so despite possible future rising interest rates, it is still a good

also in 2015. The rand will be the key. The rand is currently very vulnerable

time to buy.”

given South Africa’s dependence on foreign capital inflows to finance our relatively large budget and current account deficits. Given that we need

WHAT LEGISLATION WILL HAVE FAR-REACHING CONSEQUENCES IN THE PROPERTY

continued foreign capital inflows, much therefore depends on how foreign

INDUSTRY IN THE YEAR AHEAD?

investors view the risk of putting their money into South Africa relative to the return they will receive. Risk perceptions towards South Africa have

Gray believes it is the Property Practitioners Bill. “This has the potential to

deteriorated as reflected by the series of sovereign risk rating downgrades

change the way that all estate agents and estate agencies operate and

since 2012, which have limited capital inflow and as a result weakened

will need to be carefully analysed. Companies that can react best to the

the rand, which in turn is inflationary. The rand is likely to be particularly

changes envisaged by this bill will have a huge competitive advantage.”

vulnerable when interest rates in advanced countries, especially in the US,

Golding agrees that the most important legislation in 2015 is the pending

start to rise, as investors will then receive a higher return for very little risk

revision of the existing Estate Agency Affairs Act into the new Property

by putting their funds into the US; to counter this, most emerging markets,

Practitioners Bill. “It will be extremely important in that it will govern

including South Africa, will probably have to up interest rates in order to

the residential property industry for the immediate future, once it is

keep the funds flowing in, currency stable and inflation contained. The MPC

promulgated.”

is expected to increase interest rates by another 25 basis points before end 2014, and by another 100 basis points in 2015.”

Lew Geffen, chairman of Sotheby’s International Realty in South Africa, says: “The first of these bills is

The overall sense that seems to be pervading the property industry is that the

the one proposing the limitation of foreign property

next year will be tough economically. However, South Africans have already

ownership in South Africa. This may not affect

lived through one recession, and the property market is still recovering and

property prices or even buying, but it will impact on

showing steady growth for now. How long that growth lasts, however, will

the perception of South Africa in a negative way

depend very heavily on economic growth.

from a direct foreign investment perspective. In other words, it may not affect the housing market, but it will, in my opinion, affect the willingness of investors to get involved in other sectors of the South African economy.

BY ANGELIQUE REDMOND

OVERTHE THEPAST PAST3030YEARS YEARS OVER OVER OVER THE THE PAST PAST 3030 YEARS YEARS WE’VE MADE OUR HOME WE’VE MADE OUR HOME WE’VE MADE MADEOUR OURHOME HOME INNEIGHBOURHOODS NEIGHBOURHOODS INWE’VE IN IN NEIGHBOURHOODS NEIGHBOURHOODS ACROSS SOUTHAFRICA. AFRICA. ACROSS SOUTH ACROSS ACROSSSOUTH SOUTHAFRICA. AFRICA.

WANT IN? WANT IN? WANT WANTIN? IN?

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THE RAWSON PROPERTY GROUP ATAT THE RAWSON PROPERTY GROUP AT AT THE THE RAWSON RAWSON PROPERTY PROPERTY GROUP GROUP WE RECOGNISE THAT IT’S OUR WE RECOGNISE THAT IT’S OUR WE WE RECOGNISE RECOGNISE THAT THAT IT’S IT’S OUR OUR TEAM THAT MAKES GREAT. TEAM THAT MAKES USUS GREAT. TEAM TEAM THAT THAT MAKES MAKES USUS GREAT. GREAT.

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CONTACTUS US CONTACT CONTACT CONTACTUS US

To join dynamic team - Sales To join ourour dynamic team - Sales andand Rental Agents and Commercial Brokers Rental Agents and Commercial Brokers To join To join ourour dynamic dynamic team team - Sales - Sales and and Rental Rental Agents Agents andand Commercial Commercial Brokers Brokers

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Page 22: H OW M U C H CO M P E T I T I O N I S G O O D F O R YO U

HOW MUCH COMPETITION IS GOOD FOR YOU? Competition is healthy right? Well yes, as long as you don’t take your eye off your own ball We all accept that life is one big competition. However, some are far more

This is, of course, an extreme example, but make no mistake, there are

competitive than others and will go to great lengths to ensure that they win

many overtly competitive agents who will, if circumstances allow, take

at all costs.

competitiveness to a whole new level.

Estate agents work in a very competitive field. Think about it. They not only

One of the more common things that South African agents seem to do is

have to compete against those working with other agencies, they also have

to badmouth areas where they don’t personally operate and in which they

to vie with members of their own sales team. This makes sense, of course,

believe the buyer may be interested. Another trick involves advising buyers (or

because the industry is commission based, which essentially means that you

sellers) not to choose a particular agent or agency. While it is in a client’s best

don’t get paid if you don’t close the deal.

interests to use a registered agent, discussing a reputable agent in a less than favourable manner is both unprofessional and unethical.

So how far is your average real estate agent willing to go to ensure that he rules the roost in the local market? Probably not as far as a New Zealand-

Believe it or not, competition boosts productivity and, as such, financial gain. A

based agent whose efforts landed him in a court of law recently.

challenging environment makes agents work harder for both the buyer and the seller. Interestingly, when the Harvard Business Review conducted a study into

It was alleged that an agent by the name of Grant Tucker posted broken glass

competitiveness among new businesses, it reported the following: “We studied

and faecal matter to the lawyer of one of his competitors and used obscene

British tax data covering nearly two million companies launched in the UK from

language on the phone to a rival agent. Although neither of the parties, it

1995 to 2005, looking at the competitive environment the companies faced in

seems, is willing to discuss what led to the dispute, it’s fairly obvious that

their first few years and at how long they remained in business. We found that

somewhere along the line things got completely out of control.

companies launched in crowded markets had higher odds than others of failing

Page 23: H OW M U C H CO M P E T I T I O N I S G O O D F O R YO U

in the first year – but if a company survived during this early period, it had

There is a direct link between depression and motivation, and, as such,

a much greater chance of making it to the three-year mark. A firm’s early

it’s very important to keep things in perspective.

exposure to competition appears to have an immunising effect, in much the same way that a person’s exposure to illness can create antibodies that

One of the first things that should be asked is, is the tail wagging the

provide long-term protection.”

dog? In other words, are you building your business in ways that suit you, or are you so busy copying everyone else that you’ve lost your way

The truth of the matter is that while competition is healthy, undue rivalry,

completely?

which is a totally different animal, is generally not. Successful agents generally look for ways to boost their business on an We all have rivals, regardless of how far up the corporate ladder we are.

ongoing basis. That said, they also know what works for them and will

Someone always has their eyes firmly focused on our successes and failures,

undoubtedly stick to what makes them a good agent. They don’t usually

and likewise, we tend to keep a close eye on agents operating in ‘our’

compare their success to those of others and if they do, they don’t allow

area. There is absolutely nothing wrong with keeping tabs on competitors,

themselves to dwell on these – they simply up their game and work just a

but alarm bells should ring when we start to become obsessed with another

little bit harder.

agent’s performance. Remember, there is probably always going to be someone who is more Simply put, you will probably not achieve success if you are constantly

successful than you, but it does help to keep some perspective. It wasn’t

looking around in order to see what your competition is doing. Taking your

that long ago that the real estate industry was swamped with agents.

eye off the ball and focusing all your attention on your rival’s successes

The levels of entry (which in the 2000s were practically zero) allowed all

invariably threatens your own achievements.

and sundry to enter the profession. Competition was at an all-time high and agents had to be constantly on their toes if they wanted to close a

We all want to be successful and tend to emulate those who have managed

deal. Property sales had gone through the roof, which obviously meant

to achieve what we consider to be success. While there is absolutely

that far more agents got a slice of the pie, making the slices increasingly

nothing wrong with this, problems can creep in when we start obsessing

thinner.

over our rival’s performance and constantly compare ourselves to more successful individuals.

These days there are far, far, far fewer agents around and it should now (in theory) be easier to make a decent living selling property.

Healthy rivalries can turn into dangerous obsessions and while you may not go as far as the chap in New Zealand, there is a good chance that adopting the wrong mindset will eventually lead to

BY LEA JACOBS

depression and despondency.

HERE ARE SOME TIPS TO KEEP YOU MOTIVATED: •

•

While you may be envious of someone else, there are those who

•

Do not allow personal rivalry to distract you from your goals.

will be envious of your successes. This, too, can be a source of

Obsessing about someone else’s success and bending yourself out

distraction. Don’t be too hard on yourself and give yourself a pat

of shape in the process is going to come back to bite sooner rather

on the back for a job well done – every time.

than later.

Remember that healthy competition and rivalry can be good

•

You don’t have to be Einstein in order to sell property on a grand

for you and actually encourage you to do better. Embrace the

scale (although given the new qualifications, it may help). You do,

competition, just don’t become obsessed with it.

however, need to have passion, be totally committed and work incredibly hard. Selling property isn’t for sissies – it’s for those who

•

If you do start to become despondent, surround yourself with supportive colleagues and friends. It’s often difficult to see the wood for the trees, but those closest to you will recognise your strengths and boost your confidence.

know what they want and who go out and get it – every time.

PROPERTY PRACTITIONERS BILL

Rebosa needs you now! With the looming deadline of January 2015 for the Property Practitioners Bill, there’s not a lot of time left

ebosa (the Real Estate Business Owners of South Africa) is urgently calling all business owners/principals/employers to become members and unite the industry, today. With the residential property sector contributing R123,8 billion to SA’s economy, never before has the need to stand together been so necessary. The voice for the collective, Rebosa is the platform that addresses areas of concern in the industry that would otherwise fall by the wayside. Just as every other industry rallies against issues, so too should the real estate industry. Transformation is inevitable, but in order for the industry to grow, the process must be managed smoothly. Rebosa is the solution to this process. One of the first major challenges being tackled is the looming Property Practitioners Bill. This bill will replace the current Estate Agency Affairs Act (1976). There are serious flaws in the current legislation that the industry does not want to see repeated in the next. A major concern within the act is, for example, around the issuing of Fidelity Fund Certificates (FFCs). Every year agents are required by

“

To be effective, we need the vast majority of business owners to become members Jan le Roux, CE Rebosa

”

Together we can achieve what individually we cannot!

ONLY

DAYS LEFT?

law to apply and obtain a new FFC. If an agent fails to get their FFC on time, then the penalty is that the agent may not earn any commission off sales. However, in many instances there is a delay in the issuing of FFCs due to administrative issues. In such instances, Rebosa can now intervene and follow up on any outstanding FFCs. “We do everything in the best interests of business owners. Together we can achieve what individually we cannot,” says Jan le Roux, CE of Rebosa.

How to join 1 - Go to www.rebosa.co.za 2 - Complete your membership application 3 - Or contact Dee on info@rebosa.co.za 4 - Membership fee is only R20 excl VAT multiplied by the number of registered estate agents (inclusive of Principals) per office per month 5 - For queries relating to FFCs contact Fiona on fiona.rebosa@gmail.com

Let’s unite and: - Ensure that shortcomings in the current Act are not repeated in the Property Practitioners Bill - Interact with the EAAB to facilitate the issue of Fidelity Fund Certificates timeously - Interact with all stakeholders in the real estate industry to ensure that our industry is vibrant, growing and prosperous for all.

Membership Application Trading name of estate agency Registered owner (if not the same as above) CC PTY LTD Sole proprietor Trust □ Vat number (if registered as a vendor) Physical address

Postal address Office telephone number Full names of managing principal Managing principal’s cell phone number Managing principal’s e-mail address Name of agency contact person (if not the managing principal)

Contact person’s cell phone number Contact person’s e-mail address Commercial: YES / NO

Residential: YES/NO

No. Principals

No. Agents

No. Intern Agents

No. Em ployees

TERMS AND CONDITIONS OF MEMBERSHIP FEE STRUCTURE A membership fee calculated at R20.00 plus VAT per registered agent (inclusive of principals) per agency is payable monthly.

Signed at ___________________________________ on this day __________of_________________ 2014 Signature on behalf of registered owner: _______________________________________________

Membership of Rebosa is subject to the Rebosa Memorandum of Incorporation of a Non-profit Company. By signing this membership application form, I agree that the company, Rebosa, may send me relevant updates and electronic communications as contained in the objectives of the organisation.

APPLICATION PROCESS Once your application has been submitted, an invoice for payment will be sent to you. On receipt of payment, the process to ratify an application by the Rebosa Board will commence and will take 7 to 10 days to complete. Following this, a communication will be sent to you, confirming your membership. A copy of both the company’s and the principal’s current FFC must be attached to your application when you submit it. Membership forms can be submitted via e-mail to info@rebosa.co.za, or faxed to 086 604 7245.

Page 26: M A R K E T S H A R E

PROPERTY FINANCE IN SOUTH AFRICA Property Professional speaks to one of the leading industry statistic and insight providers to compare foreign property buyers and sellers in South Africa between 2013 and 2014. These include statistics on foreign buyers and sellers in South Africa and whether foreign ownership is paid by cash or bond. We also look at foreign ownership stats from around the world.

FOREIGN PROPERTY OWNERSHIP AROUND THE WORLD

FOREIGN PROPERTY BUYERS IN SOUTH AFRICA Of the 280 395 property registrations that took place across South Africa, 8 530 (3%) of those properties belong to foreign buyers.

15%

USA

6% SOUTH AFRICA

THE FIVE PROVINCES THAT HAVE THE HIGHEST NUMBER OF FOREIGN BUYERS ARE :

BRAZIL

1% GAUTENG 4 054

WESTERN CAPE 2 343

EASTERN CAPE 376

FOREIGN PROPERTY OWNERSHIP IN SOUTH AFRICA â&#x20AC;&#x201C; CASH OR BOND? MPUMALANGA 185

KZN 1 024

53% CASH

47% BOND

53% of the 8 530 foreign-bought properties in South Africa over the past year have been cash purchases or investments, while the remaining 47% have been bonded.

TOTALS OF PROPERTY PRICES BY FOREIGN BUYERS

PURCHASE PRICE - R9 679 296 239

SALES PRICE - R11 284 674 770

Credit: Information supplied by Lightstone, www.lightstone.co.za

GAMIFICATION: PROPERTY MARKETING OF THE FUTURE Houzz-It! is the branded entertainment game which will be available from iStore and Google Play and is based on the experience of managing the risks and opportunities of buying and selling property.

experience with a positive brand association with your products in the game. There are 5.4-million South African Facebook users and 40-million South African cell phone users. Research shows that there is a continuous growth in casual gamers through Facebook and cell phones for game play, purchasing and engaging with companies. Houzz-It will allow your brand to tap into this market, with the flexibility for customised advertising solutions that engage with the audience and compels them to respond. Houzz-It! is based on a game play concept that will roll out over a number of challenges. The first stage is for players to complete the tutorial challenge in order to unlock further challenges.

PropertyJunction in conjunction with Sea Monster

opportunity that would offer a host of digital

- the top gaming company in South Africa -

platforms through which to expose your brand.

An exciting aspect of Houzz-It! game play is

are launching the most exciting interactive

“Gamers would engage with your brand while

that players have the opportunity to win real

property game this December that is unmatched

playing the game in order to transact their

prizes, like tablets and iPads. In the Win-A-

even internationally.

properties whether they are buying, selling or

Home challenge launched February 2015, one

renting,” says Sparks. “Gaming gives your

successful Houzz-It! gamer (over 18 and a South

Bradley Sparks, Business Development Manager

brand deeper relationship engagement, as clients

African resident) will win a completed home

at Property Junction says: “The aim of the

engage with the game daily (hourly) and more

valued at approximately R2-million.

game is for players to increase their wealth by

importantly, with your brand as a trusted adviser.”

choosing to buy properties that offer good value and investment potential. Players will need to

HOUZZ-IT! HOUZZ-IT! Sparks goes on to point out that through Houzz-It,

consider what they can afford and when the right

real estate brands will be able maximise their

time would be to buy or sell their properties. The

exposure to a targeted audience through this

game includes real-life brands and, better yet, lets

unique and innovative marketing and branding

players interact with them.”

opportunity. Houzz-It redefines a ‘buyer advocacy’ marketing strategy as potential clients

For property companies, advertising within

interact with your brand in a fun game play

this game is an exciting property marketing

environment, which includes degrees of subtle

“HOUZZ-IT OFFERS REAL ESTATE COMPANIES AN UNPARALLELED OPPORTUNITY TO ENGAGE IN LIFE-LIKE TRANSACTIONS WITH AN AUDIENCE WHO HAS AN INTEREST IN PROPERTY,” Bradley Sparks, Business Development Manager at Property Junction

HOUZZ-IT! HOUZZ-IT!

VISIT HOUZZ-IT.CO.ZA FACEBOOK.COM/HOUZZIT.GAME

Page 28: T H E H A B I T S O F H I G H LY S U CC ES S F U L ES TAT E AG EN T S

THE HABITS OF

HIGHLY SUCCESSFUL ESTATE AGENTS

P RESEN TAT I ON S

S TAY I N TOU C H

G O A LS A N D P LA N N IN G

SEL F- E VA LU AT E R O LE PLAY

Page 29: T H E H A B I T S O F H I G H LY S U CC ES S F U L ES TAT E AG EN T S

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Want to up your game? We chatted to one of the country’s top real estate trainers to find out how to get the edge on the competition. Have you ever wondered what makes a good agent great? We have

up drifting from one agency to another, expecting different results. Highly

all met someone who stands head and shoulders above the crowd,

successful agents, on the other hand, are disciplined and task-oriented,

regardless of the economic climate or the state of the property market.

which means they’re not likely to do things on the spur of the moment.

We can be forgiven for thinking that these people are simply lucky and

They don’t go shopping in the middle of the day or start working at 11am.

that their ongoing success is because they are in the right place at the

They are focused and know exactly what must be done, from Monday to

right time, or that they work for the ‘right’ agency. But, while these factors

Sunday.

may play a role, they are by no means the sole reason for a top agent’s success. Surprisingly enough, agents of this calibre don’t own a magic wand, nor do they have access to some sort of genie held captive in a bottle. The reason for their continued success is that they simply stick to the basics. Property Professional chatted to Anthony van der Riet, a business coach

C REATE EFFEC TIV E PRES EN TATIO N S

and property trainer at The Coaching Factory, and asked him to name the top five guidelines that every agent should follow. It is amazing how many agents forget that they are the ‘product’ and homes are the ‘commodity’, and that clients ‘buy’ them before they buy a property or sign a sole mandate. Unfortunately, many take shortcuts and go and see a potential seller with only a computerised valuation print-out

S E T G O A LS A ND A D AILY A CT I V I T Y P LAN

and a glossy brochure without realising that these are only some of the important ‘tools’ they need to do the job properly. The majority of agents these days don’t prepare a proper Comparative Market Analysis (CMA), which should include properties currently on the market, those that have been sold and expired listings. The CMA should also include the profile of the company and of the agent, properties on the market as well as those

There are hundreds of estate agents who earn huge sums of money

sold (with pictures), a marketing plan, knowledge and statistics of the

because they have a goal, a business plan and a structured daily activity

area, letters of recommendation, the Estate Agency Affairs Board (EAAB)

schedule in place. And, no matter what, they do what has to be done.

Code of Conduct, a Fidelity Fund certificate and tips for making the home

Unfortunately, there are also thousands of agents who have the knowhow

more attractive to buyers. A good presentation should leave no doubt in

and qualifications, yet battle to make ends meet. These are normally the

a client’s mind that this agent can sell the house for the highest possible

agents who blame the banks or the fact that there’s no stock and they end

price, in the shortest time, with the least amount of hassle.

Page 30: T H E H A B I T S O F H I G H LY S U CC ES S F U L ES TAT E AG EN T S

R O L E P L AY

Life is a stage and yet agents spend little time role-playing. This practice is recommended for those who want to sharpen their skills and perfect their sales and negotiation techniques. Unfortunately, many are reluctant to role-play for fear of looking silly or of making a mistake in front of their colleagues. The truth of the matter is that while a mistake in front of one’s peers may cause a few sniggers around the office, it won’t cost the agent a cent. On the other hand, making mistakes in the field can cost hundreds of thousands of rands. The fact is that many sales people refuse to participate in this form of training because of a lack of knowledge on the part of the manager, a lack of preparation, or both. Most superstars in the industry today have had the benefit of learning from another agent, either by observing them in action, or by being coached in the finer details of performing in front of a client.

S TAY I N TOU CH There is a saying that goes ‘staying in touch is staying in business’. This does not mean posting messages on Facebook or WhatsApp and expecting all your old clients to contact you when they need advice. It means you have to make them feel you are contacting them personally, which has to be done at least six to 12 times a year. Some of the most successful agents remember to send a card on a client’s birthday. They send out newsletters mentioning things like wedding anniversaries and would never dream of allowing a Mother’s or Father’s Day to go by without sending a card.

“THERE ARE THE BASICS OF REAL ESTATE AND THEN THERE ARE SHORTCUTS, AND WHEN AGENTS TAKE SHORTCUTS THEY TEND TO FALL OFF THE BUS,” SAYS VAN DER RIET. “THE BASICS OF REAL ESTATE ARE LIKE THE FOUNDATIONS OF A HOUSE THAT ENSURE A STRONG STRUCTURE THAT WILL LAST FOR A LONG TIME AND NOT CRUMBLE AND CRACK WHEN THERE’S PRESSURE OR A CHANGE OF SURROUNDINGS”

Page 31: T H E H A B I T S O F H I G H LY S U CC ES S F U L ES TAT E AG EN T S

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contains facts and statistics. Experienced agents are K

often accurate about the price, but by not backing it up

See Page 32 for details.

with a visual presentation containing comparable properties, time on the market and percentage of asking price achieved, they lose mandates to less experienced agents who do the basics

S E L F - E VALU AT E

with enthusiasm.” Van der Riet also stresses the need for agents to be prepared at all times. “There’s a saying that goes, ‘you don’t prepare to get a mandate when you get an appointment – you stay prepared so you can get mandates’.

A commission cheque is a report card that indicates how well one

There’s so much information that needs to be current in order to stay

has performed during the year. If our children come home with poor

ahead of the opposition that this has to be updated on a weekly basis.”

marks, we take corrective measures to assist them in order to improve the situation. Sometimes we have to put our pay cheque next to our children’s report card and see who needs remedial action the most. The method of looking at ourselves as we really are, on a daily, weekly and

S O WHAT MAKES S O ME AG EN TS RI S E ABOV E THE RES T?

monthly basis, is one of the most important aspects of finding our true identity, as well as of finding the pace that is right for us. Self-evaluation

Van der Riet notes that highly successful agents possess a great attitude

happens when we take accountability for our actions and either change

which, in his opinion, is the most important ingredient. They also have the

our habits or find a coach or mentor to hold us accountable.

discipline needed to get stock, because if agents have stock, buyers will find them. In other words, if you have stock, you have a business.

Every profession has basic rules that need to be followed. In journalism,

He says that top performers also know that interruptions are the thief of

for instance, the most basic rule (apart from the ‘i before e’ bit) when

time and that there’s a time and place for everything. “They know how to

writing an article is to tell the reader who, what, where, when, why and

say ‘no’ to people, whether they are clients or colleagues, and do not try

how. If a writer doesn’t get the basics right, the story will be muddled,

to please all the people all the time. Top agents have learned to only deal

hard to understand and not worth a read. The real estate profession also

with qualified buyers and sellers by asking the right questions early on in

has basics that have to be followed if an agent wants to sell consistently

the conversation and will walk away if they realise that the buyer is not a

well.

‘good prospect’.”

“There are the basics of real estate and then there are shortcuts, and

Another point he raises about outstanding agents is that they follow a

when agents take shortcuts they tend to fall off the bus,” says van der

strict budget and do not spend their whole commission every month. They

Riet. “The basics of real estate are like the foundations of a house that

save in order to weather all conditions and for this reason, they don’t

ensure a strong structure that will last for a long time and not crumble

go into panic mode when the markets quieten down or if they have a

and crack when there’s pressure or a change of surroundings. The basics

slower month or two. They also participate in office activities, attend sales

must always form part of an agent’s working life. Interestingly, when an

meetings, training courses, property expos and share their buyers and

agent does this well, it becomes known as an advanced technique that

stock. Top agents also invest in themselves and don’t wait for the company

contains the basics, but with more structure and information.

to do things for them. They are proactive and make things happen according to their goals and plans.

“The first and most common reason agents take shortcuts is because they feel they know what they are talking about and can verbally convey to a seller what their house is worth without a proper presentation that

BY LEA JACOBS

Convert rewards to cash! Now you can easily convert your rewards points to cash. BetterRewards has always been about rewarding our loyal agents in bigger, better ways – and improving the rewards experience at every opportunity. As an estate agent, when sending us your OTPs and registrations, you receive BetterRewards points if you are a member of our programme. Your points can now conveniently be converted to cash and withdrawn from an ABSA ATM.

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Log-on to BetterRewards.co.za, select “Programmes” then select “Rewards MasterCard” and click on the “ABSA CASH WITHDRAWAL” button.

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At an ABSA ATM press CashSend and follow the prompts. Enter your 10 digit reference number. Then enter your 6 digit pin code as per the SMS you received. Enter the exact amount displayed in the SMS (which you pre-requested on the website).

The total amount requested that is displayed in the SMS you received needs to be withdrawn in full, as one transaction.

You have 7 days to draw the cash from date of request, after which the CashSend expires and you will be credited the points.

Not a BetterRewards member and want to enjoy great benefits such as these? Sign up at: www.betterrewards.co.za For more information or further assistance contact BetterRewards on 0860 77 77 60 or email info@betterrewards.co.za

Page 34: B EE S U CC ES S I N T H E P RO P ERT Y I N D U S T RY

BEE: FINDING SUCCESS IN THE PROPERTY INDUSTRY BEE is quite a charged issue and one that the real estate industry is still

has not yet been launched as funding is a critical concern that has yet

busy tackling. There have been many talks on how to better create a real

to be addressed, but many hope to see it launched so that despite the

estate industry that reflects South Africa as a whole. Perhaps surprisingly,

logistical and financial concerns the property sector will become a BEE

there are real success stories that indicate that we may not be as far off

success story.

as we thought… And there are already property companies who are striving to show that There are programmes that have been proposed by the government in

success is at hand. Chas Everitt has already made changes to HR and

conjunction with the real estate industry to see BEE compliance become a

procurement procedures to improve its current B-BBEE compliance levels.

reality; one of these is the ‘One Learner - One Estate Agency’ internship

From a HR management perspective it is looking at increasing its training

programme recently launched by the Department of Human Settlements and the EAAB (Estate Agency Affairs Board). What it aims to create is an internship position at each of the estimated 10 000 estate agencies operating in South Africa. The idea is to open up the sector to young people (the average age of an estate agent currently being 58), women and previously disadvantaged people. To ensure that young people are entering the industry, all the applicants must be below 35 years of age. According to EAAB chairperson, Professor Kwandiwe Kondlo, the programme will run over three years, ending in March 2017, enabling school-leaving learners and tertiary students to become one of 10 000 new real estate agents.

budget to 10% of net profit after tax and this will

WHILE THIS IS STILL IN THE EARLY STAGES IT IS A STEP IN THE RIGHT DIRECTION AND, IF PROPERLY IMPLEMENTED, WILL ENSURE THAT NOT ONLY IS THE REAL ESTATE SECTOR BEE COMPLIANT BUT THAT THERE IS AN INFLUX OF FRESH YOUNG MINDS READY TO ENGAGE AND CONTRIBUTE TO THE PROPERTY INDUSTRY.

The project will consist of a mandatory year-long

be focused on learnerships, mentorships and internship programmes for black employees and unemployed black people. Berry Everitt says, “We understand that we are still quite a way off where we need to be, but we are improving every day and we do already have some positive success stories on which to build.” Leapfrog Property Group shares this goal. Launched in 2007 its structure and shareholding scheme from day one has been to ensure the company is majority black owned, and to date it is the only national group to have achieved this. Says Bruce Swain, MD of Leapfrog, “We have also been vigilant in trying to deal with BEE compliant suppliers, which resulted in a procurement recognition level of 110% for our latest rating assessment. A strong focus on trying to assist independent agents who operate

internship during which the EAAB has committed

in the townships, mainly through the provision of

to monitor and facilitate each internship position, thereby ensuring that

training, but also business support, allowed the company to achieve a

each new entrant receives valuable theoretical as well as practical

100% score for socio-economic development. Finally, the composition of

learning. While this is still in the early stages it is a step in the right

the board of directors, management and staffing, in addition to the above

direction and, if properly implemented, will ensure that not only is the real

elements resulted in Leapfrog Property Group being rated as a level three

estate sector BEE compliant but that there is an influx of fresh young minds

contributor (AA status) for the company’s latest B-BBEE verification.”

ready to engage and contribute to the property industry. This programme

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Leapfrog is also committed to the EAAB’s One Agency - One Learner

reports submitted to the executive committee. Enterprise development is

initiative and looks forward to assisting new entrants in becoming

another initiative implemented by JHI. Up and coming entrepreneurs are

qualified, successful professionals in our exciting industry.”

approached and we assist them in various ways to establish and run a business,” says Radebe.

JHI is another company that made sure BEE was an important part of what it was as a company several years ago. As soon as BEE compliance

“When JHI Properties commenced on the BEE process, it was a level

was introduced in South Africa, JHI began measuring and transforming

four contributor, and it took us two or three years to progress to level

its company. Nomzamo Radebe, MD of JHI Properties elaborates, “From

three. We believe that JHI is a responsible company and we believe in

inception and adoption of the process, employee transformation reporting

the transformation process. Development of people is a key strategy and

became a priority and part of the company’s monthly executive committee

plays an important role in the success of our organisation. We have intern

meetings, with those members conveying the message and policy through

and learner programmes in place and are proud of the success rate we

to all levels of staff. In this way the process was adopted and driven

achieve – over the past few years approximately 80% of our interns/

not only by senior executives and management, but throughout the

learners have been placed in employment within the company. For

organisation. The human resources department reported on the status and

JHI, this is a highlight among our achievements and deeply rewarding,

as a company we benchmarked against the property charter as well as

particularly as we have seen interns who were placed in permanent

the DTI (Department of Trade and Industry) targets.”

positions rise to management positions within six to eight months. We have also introduced a fast track development plan where we have

An Employment Equity forum was established at JHI, which meets

individuals who were on junior levels progressing to senior positions after

regularly, including HR and company managing directors and

one to two years.”

executives. This is a valuable platform on which to raise any issues and recommendations, enabling HR to action where possible and provide

And that’s not all, team-building initiatives are encouraged within the

feedback to the forum as well as to the various Exco teams. Regular staff

company, and the company contributes towards a worthy cause or

feedback sessions (‘Let’s Talk’) are held where the MD of the company

charity, with the main contribution coming from the staff themselves

provides feedback to staff on all aspects of performance, including BEE

through participation in their own time. Radebe says, “We realise that

progress.

much of the success of our BEE programme has been due to constantly measuring and reporting on our progress and maintaining focus, while

“In addition, reporting on corporate social investment (CSI) initiatives

meeting company performance targets in regard to stakeholders. This is

forms part of the feedback provided by HR. In regard to procurement,

very much a journey and our aim is strive for level two status within the

this has been allocated to the finance department, with procedures

next few years.

put in place for vendor acceptance, and again with monthly status “This process has certainly made a difference both internally as well

WHEN JHI PROPERTIES COMMENCED ON THE BEE PROCESS, IT WAS A LEVEL FOUR CONTRIBUTOR, AND IT TOOK US TWO OR THREE YEARS TO PROGRESS TO LEVEL THREE. WE BELIEVE THAT JHI IS A RESPONSIBLE COMPANY AND WE BELIEVE IN THE TRANSFORMATION PROCESS. Nomzamo Radebe, MD of JHI Properties

as externally. Within JHI it enables staff to state with pride that they are committed to transformation and strive to do what is right. From an external point of view it benefits the organisation, especially when we go out on tender with government institutions or parastatals, as well as with other like-minded organisations, whose goals are to comply and achieve better ratings. “I believe that we need transformation in the property industry so that we can increase the skills pool and expertise in property. Currently, there is a relatively small participation in this market. If one considers the demographics of the country and the demographics of individuals currently employed within the property industry, the statistics are not commensurate with each other. We need to have people from all sectors of society in South Africa being able to contribute their expertise in this sector,” concludes Radebe.

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Herschel Jawitz of Jawitz Properties echoes this sentiment: “Jawitz Properties has achieved a level three BEE compliance rating largely as a result of three factors: recruiting people who fall into the previously disadvantaged communities categories; skills development of these people through ongoing training – internally and sending them on external courses; and through trying to ensure as best we can that our procurement partners are BEE compliant. The real challenge going forward will be the increased training and recruiting of black estate agents and the promotion of our current black members of staff into more senior and management positions. At the current time there is no real government or other related business that we participate in that requires us to have the BEE certification but it is rather in the spirit of being part of the solution and we also have a property charter that puts certain milestones in place with regard to being BEE compliant.”

B E E S UCCE S S ST ORIES Sipho Zamisa is an estate agent from RE/MAX Coast and Country, in Hibberdene and surrounding areas. A husband and father of five, Sipho shows that BEE is affecting real change on the ground in South Africa. Growing up in rural Umzumbe, about 20km inland from Hibberdene, Sipho could not get work after graduating with a matric. It was in 2003 that he saw a new Pam Golding office in the area and went in to pay them a visit. After chatting to the principal agent, a fire was ignited and Sipho knew he wanted to be an estate agent. He began studying straight away and before long had received his licence and was a practising agent. Sipho says, “When I began my career as an agent, I did not have a driver’s licence or a car and therefore the only way I was able to do my job was to walk. I would walk enthusiastically from house to house and client to client. I loved walking, it was a time that I really enjoyed and it certainly got people talking. I would say that walking the streets caused people to know me and remember who I was and what I did. In fact, many of the clients that I had during that time are still with me today. As much as I enjoyed walking, there were moments when I felt self-conscious telling clients that I didn’t have a car and so, instead, I would tell them that my car was broken and needed to be repaired. I eventually progressed to a bicycle and, after completing my driver’s licence, I bought myself my very first car.” After seven years with Pam Golding, Sipho moved to RE/MAX and has pushed himself hard to think and work beyond the proverbial box, which he credits for his success. “My journey has inspired my family tremendously – not just my immediate family but my extended family as well. They are very proud of my achievements and can see how far I have come.” Clifford Nxasana is also a RE/MAX estate agent but works in Cowies Hill, Pinetown and surrounding areas. He was born in the rural area of Ixopo and was raised there by his single mother, before moving to Pietermaritzburg at the age of six to begin schooling. After matriculating

“I WOULD SAY THAT WALKING THE STREETS CAUSED PEOPLE TO KNOW ME AND REMEMBER WHO I WAS AND WHAT I DID. IN FACT, MANY OF THE CLIENTS THAT I HAD DURING THAT TIME ARE STILL WITH ME TODAY. AS MUCH AS I ENJOYED WALKING, THERE WERE MOMENTS WHEN I FELT SELF-CONSCIOUS TELLING CLIENTS THAT I DIDN’T HAVE A CAR AND SO, INSTEAD, I WOULD TELL THEM THAT MY CAR WAS BROKEN” Sipho Zamisa, RE/MAX estate agent

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in 2002, Clifford began his career in retail stores, moving on to security for ADT, but the job was dangerous and involved patrolling late into the night, never knowing what would happen or what he would find. One of the buildings under his watch was the RE/MAX building in Cowies Hill, where he grew to know Gail Compton, the principal, after responding to alarm activations. “After meeting Gail and chatting to her, I had a better idea of what RE/MAX was all about. One day I decided to visit the RE/MAX Tricolor offices to find out more about becoming an agent. I was asked whether I had enough money to support myself for between four to five months. At that moment I didn’t, but I went away and saved up enough money to be able to live for

“WHEN I BEGAN MY CAREER AS AN ESTATE AGENT IT WAS NOT EASY. I DIDN’T HAVE THE EQUIPMENT THAT I NEEDED, BUT I CAME INTO A SUPPORTIVE OFFICE WHERE I WAS GIVEN A PC TO USE UNTIL I BOUGHT MY OWN LAPTOP. I ALSO DIDN’T HAVE A CAR, I ONLY HAD A BAKKIE. ON THE DAYS THAT I NEEDED TO VIEW PROPERTIES, I HAD TO SWOP MY BAKKIE WITH A FRIEND’S PRIVATE VEHICLE SO THAT I COULD TAKE OUT MY CLIENTS” Clifford Nxasana, RE/MAX estate agent

four to five months while I waited for my commission to come through. I came back and joined RE/MAX Tricolor in March 2009. “When I began my career as an estate agent it was not easy. I didn’t have the equipment that I needed, but I came into a supportive office where I was given a PC to use until I bought my own laptop. I also didn’t have a car, I only had a bakkie. On the days that I needed to view properties, I had to swop my bakkie with a friend’s private vehicle so that I could take out my clients. Life was not easy, but because I had a strong, supportive family standing by my side, I made it through my worst year in 2010 – when my garden cottage that I rented was broken into twice, and all my clothing and possessions were stolen. In addition, the real estate market was at its worst. Since joining RE/MAX my life has completely changed for the better. Through the training that I have received, especially the Brian Buffini programme, the way I see life has changed and I have the mindset of ‘think like a famer and work like a hunter’. Also the fact that I am now a professional allows me to become a better person each and every day and to grow my earnings and provide a life for my child that is better than the life that I had. “I now own my own house, I have a private car as well as my bakkie, and my lifestyle has improved to such a level that the people who I used to work with at ADT now see me as their role model and would love to be like me. It is things such as this that make me want to work harder still and to become the best person that I can be, and to help other people to succeed as I have. With Gail giving me the opportunity to become part of the RE/MAX Tricolor team, and the training that Gail and RE/MAX have given me, along with the support of my colleagues, I have become a better person in life as a whole.” In the past, the property sector may not have been known as an industry into which previously disadvantaged people could venture and have thriving careers, but there are many property companies that are looking to change this and build an industry that is a reflection of the society in today’s South Africa… and they have the success stories to show that, with a little bit of initiative and support, BEE does work!

BY ANGELIQUE REDMOND

Page Page 38: 38: IANRC D UHSITTREICATLUPRRO A LPAC ERT HY I EV R ES EM I LI EN EN T SC E

ARCHITECTURAL ACHIEVEMENTS

The greatest historic significance this year was the City of Durbanâ&#x20AC;&#x2122;s qualifying status in hosting the 25th International Union of Architects (UIA) World Congress in August. Picture courtesy of Kierran Allen Photography

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The significance of South Africa’s architectural achievements now and into the future were celebrated in 2014 This year saw many accolades awarded for remarkable achievements spread across all levels of the industry, where, through transformation, women and students are increasingly making their mark while practising the art of design in the built environment. Possibly of the greatest historic significance this year was the City of Durban’s qualifying status in hosting the 25th International Union of Architects (UIA) World Congress in August. This prestigious affair carried the theme of ‘Architecture Otherwhere’, with keynote addresses delivered by global masters, including Japanese architect Toyo Ito and Professor Wang Shu of China, both Pritzker Prize winners. This all encompassing, large scale event was facilitated by the South African Institute of Architects (SAIA), with the support of the South African Council for the Architectural Profession (SACAP), the KwaZuluNatal Institute for Architecture (KZNIA), the Department of Public Works and eThekwini Municipality, and sponsors PPC and Italtile. ‘Otherwhere’ reinforced the role of contributions, such as different lifestyles, beliefs and communities engaging with and inhabiting the city, to the unique identity of Durban. It also celebrated diversity by exploring other communities, other regions, other disciplines and other ways of thinking about, practising and teaching architecture. In his opening address, the President of SAIA, Sindile Ngonyama, said: “It is my considered view that this congress will help our built environment professionals, practitioners and academics to bounce their spatial and metaphorical ideas against those of the world’s tried and tested in an effort to reimagine the cities Africa has inherited.” Sadly, he said, imperialist and apartheid cities were imagined and created by architects, hence inversely these aforementioned cities and settlements

Page Page 40: 40: IANRC D UHSITTREICATLUPRRO A LPAC ERT HY I EV R ES EM I LI EN EN T SC E

can only be successfully ‘undone’ through architectural intervention. “It is

The celebration of women in architecture was seen at the 2013/14

on this score that the participation of the international professionals and

Corobrik-SAIA Awards of Excellence presented by Corobrik and SAIA.

academics is hereby sought and is highly appreciated,” he said.

The low representation of female architects was stated as less than 20% of current SAIA members to be women.“We are seeing an encouraging

As one of few Africans to qualify and practise as an architect during

trend emerging with 40% women in the Architect in Training category.”

the apartheid years in South Africa, Ngonyama engaged participants

said Nina Saunders, past vice-president of SAIA.

on his journey while delivering ‘Architecture – a physical expression of values and aspirations of society’. Issues that confront this profession

She said the fact that four female architects received awards during

were emphasised in his role of straddling the divide of the old era and

August is a notable achievement in an industry where women have only

the new, as alluded to by Jonathan Noble in 2011. ”Where do we want

recently come to the fore. Awards of Excellence – the highest accolade

to be as South African architects in 10, 20 or 30 years time, and what

that can be bestowed on a building in South Africa – were presented

values do we need to get us there?” Ngonyama said, as he related the

for eight projects, with three of these projects seeing lead architects from

principles, value systems and unresolved issues,

female practices or with a woman as lead architect.

both of the teachings and practice of architecture.

The four award winning architects are Anne

Transformation in the profession is being addressed through the need for growing representation and support funding from the Ethekwini City Architects Department. The Open Architecture Initiative, rolled out by SAIA, is the first of its transformation projects aligned to Skills Development intended to address the educational and structural ‘bottlenecks’ in the currently available model of full-time study only. Students of architecture were privy to the UIA event that also incorporated the annual Architectural Student Congress 2014, as well as the longest running and highly regarded national competition for architecture students. The first prize in the prestigious annual Murray & Roberts Des Baker

”WHERE DO WE WANT TO BE AS SOUTH AFRICAN ARCHITECTS IN 10, 20 OR 30 YEARS TIME, AND WHAT VALUES DO WE NEED TO GET US THERE?” NGONYAMA SAID, AS HE RELATED THE PRINCIPLES, VALUE SYSTEMS AND UNRESOLVED ISSUES, BOTH OF THE TEACHINGS AND PRACTISE OF ARCHITECTURE.

Architecture Student Design Competition was

Graupner, principal at 26’10 south Architects in Johannesburg, Michele Sandilands, principal of MSa Michelle Sandilands Architects in Cape Town, and Charlotte Chamberlain and Nicola Irving, partners at Charlotte Chamberlain Architects in Cape Town. The celebration of global and local architecture was expressed by Ngonyama in an appreciation of architects and architecture that aspire to values and ideals. The significance of South Africa as the first Sub-Saharan host of this event was also noted, as it may have signalled a final visit in their professional capacities to the African continent for many practising participants, as the UIA World Congress will take place in Seoul on the topic: ‘Soul of City’ in 2017.

awarded to Domenico Cirillo, a third year student at UCT’s School of Architecture, Planning & Geomatics.

Regarding transformation, Ngonyama said: “Standing as we do on the threshold of our third decade of democracy, it is important that as a

Following their brief, students designed and built a full-scale prototype

profession in South Africa we deliberate on what kind of society we need

of a trading stall for a specific street vendor of their choice. The

to create for our children and our children’s children.” He said in closing

structure entailed a mobile fold-away unit of a specific size that could

that we need to invite the world architectural fraternity to help us define

accommodate the trader’s wares, but could also change over time.

what part architecture can play in creating this future. “It is my belief that

Additional requirements of this project were that 70% of the unit had to

the future we imagine for our society should be closely linked to the issues

be constructed out of recycled materials and 20% out of waste from

of identity, which are in turn linked to values.”

the building industry. The final requirement was a real time assembly of the unit during the congress with an actual street vendor trading from it in Durban.

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Page 42: R EN TA L R EP O RT S R EVO LU T I O N I S ED

THE REVOLUTION OF

RENTAL REPORTS Two of the major players in the South African rental market have developed various reporting systems to help the rental industry. We take a look at these new technological tools and how they benefit estate agents managing rental portfolios

Page 43: R EN TA L R EP O RT S R EVO LU T I O N I S ED

TPN recently released a new rental report for the property industry which

Dickens says: “The quality of a rented investment is based on the quality

will give investors all the data they need to know to make investment

of the tenant that is placed.” Never before has this been truer as people

decisions. The report will also give valuable information to franchisors

are struggling to meet their financial responsibilities, and in a tough

and rental companies across South Africa.

economic climate, it really pays for landlords to know whether they have the right tenant to ensure they don’t lose money. There are currently 36

In July this year, TPN announced the launch of RentReport, but this report

million households in South Africa which use rented accommodation,

claimed to be more than just numbers and stats on the rental industry.

that’s roughly 25% of the population, and the demand is growing. The

RentReport is a new suburb-specific reporting system, which is based

last thing a landlord wants is to have to go through a lengthy eviction

on all of TPN’s current information databases. These sources include

process because they have a defaulting tenant, and that’s where the other

TPN’s RentBook, RentBay and credit bureau data, as well as suburb

aspect of RentReport comes in. The report also provides the employment

demographics sourced from Stats SA population census and General

status of tenants in specific areas, their education level and the standing

Household Surveys.

of tenants in that area. The standing of tenants in the area is quite vital to the process whether a landlord is looking to invest

HOW DOES THIS HELP YOU? “RentReport generates reports which are based on a number of crucial suburb demographics,” says Michelle Dickens, managing director of TPN. “For example, the most important demographic from a buy-to-let perspective is how many properties within an area are rental properties (rental stock). This can indicate the kinds of volume of tenants looking to rent in that area.” Dickens goes on to explain that RentReport also distinguishes between property types in a specified area, such as townhouses, clusters or freehold properties. The database then goes on to detail

THE BIGGEST DIFFERENTIATING FACTOR OF RENTREPORT IS THAT IT IS SUBURB SPECIFIC, GIVING AN ADVANTAGE TO THOSE WHO DON’T KNOW AN AREA OR, AS A FRANCHISOR, IF YOU ARE LOOKING AT DIVIDING AN AREA BETWEEN YOUR FRANCHISEES.

rental percentages of those property categories

personally or as part of a property company. By providing landlords with the good standing levels in the area, they can see the payment performance to date in that area, whether or not people paid on time, in full or if most tenants pay late or give partial payment. How many tenants are in their grace period? Nationally 86% of all renters are in good standing, but the RentReport goes one level deeper and provides the good standing level of tenants in that area, in surrounding areas and the national average. “This means potential investors are able to view a breakdown of payment performance in an area and to analyse this performance against the national, provincial and other local averages.” The biggest differentiating factor of RentReport

in that area. “For example, in an area like Sunninghill, there are more

is that it is suburb specific, giving an advantage to those who don’t

townhouses for rent than townhouses that are occupied by owners,” says

know an area or, as a franchisor, if you are looking at dividing an area

Dickens. “In contrast, there are more owner-occupied freehold properties

between your franchisees. With this report you can get an overview of

in Sunninghill than tenants renting this type of property. Therefore,

rental prices achieved in a selected area, which is further broken down

potential investors in Sunninghill properties can deduce that townhouses

into what the property is; one bedroom, two bedrooms or three, then you

would be a more valuable buy-to-let investment.”

can take a look at the average maximum and minimum rent over that period for each category. This information gives you an in-depth look

RentReport gives a holistic view to professionals in the property industry

at what is popular where and what you can expect to get back from a

of the demographics of not just residents but the property types in the

property in that area.

area too. This data is broken down between owners and tenants, and includes the average number of tenants per household, the dynamics

There is no doubt that the quality of tenant is vitally important for any

of these tenants, i.e. single, family, couples, their ages, their income,

successful buy-to-let portfolio. Rental agents often assist landlords in

their employment.

vetting prospective tenants, among other things.

Page 44: R EN TA L R EP O RT S R EVO LU T I O N I S ED

THE STANDING OF TENANTS IN THE AREA IS QUITE VITAL TO THE PROCESS WHETHER A LANDLORD IS LOOKING TO INVEST PERSONALLY OR AS PART OF A PROPERTY COMPANY. This is where another new rental reporting tool could well serve the

www.rentbay.co.za

industry. PayProp, South Africa’s largest processor of rental payments for the residential letting industry, recently announced the launch of the PayProp Tenant Assessment Report. CEO Louw Liebenberg says that the report offers a far more comprehensive assessment of a potential tenant than a standard credit check. “It is increasingly clear that credit checks alone are not adequate to fully understand the extent of non-payment risk that a new tenant presents. It’s important that estate agencies and landlords seek more forward-looking indicators of affordability in order to better anticipate if a tenant will be able to pay in future or not,” says Liebenberg. The PayProp Tenant Assessment Report lists all prior credit behaviour information as well as taking an all-encompassing look at a tenant’s current level of debt relative to income and the rental value applied to form a comprehensive view of a tenant’s level of non-payment risk. To build this revolutionary report, PayProp Capital, a sister company of

www.rentbook.co.za

PayProp, developed a statistical model in partnership with Compuscan, one of South Africa’s leading credit bureaus. Based on the analysis of millions of actual rental transactions, the model helped the company

Liebenberg adds that a Tenant Assessment Report can only be conducted

to better understand the predictors of tenant behaviour and formed the

with the consent of the tenant. “Securing total peace of mind when it

basis of developing a customised decision making tool for the rental

comes to rental transactions is vital to ensure a harmonious relationship

industry. According to Colin Habberton, CEO of PayProp Capital: “It

with a new tenant.” Furthermore, PayProp keeps a detailed audit trail of

is incredible how, even with the same dataset that is available to all

exactly which system user requested a report – with each report request

credit bureaus, one is able to get a more comprehensive answer around

time and date stamped so that an exact trace of every request exists.

tenancy risk if you ask very specific questions.” These reports look ready to revolutionise the rental property industry, PayProp actively encourages its clients to share the information with their

so when it comes to advising clients on their investment or business

tenants. “Historically, there seems to be a perception that the public need

decisions, or securing reliable tenants for your clients’ property, you

to be excluded from being able to view or manage their credit history,

have the data on hand to make the best decisions.

but landlords and agents are now encouraged to share this assessment report with their tenants.” The report uses an easy to interpret graphical interface to help tenants understand exactly how different behaviours impact on their perceived ability to pay.

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Page 46: SAPOA 2015 STANDARDS

DEVELOPMENT STANDARDS SET FOR 2015 SAPOA has set the standard for recognition of excellence in innovation and development for 2015

SA Military Health Service (SAMHS) in Thaba Tshwane SAPOA National Overall Heritage Award for 2014 . Picture courtesy of Jeremie Malan Architects This approach, which is echoed throughout SAPOA’s philosophy, is awarded to those who meet stringent criteria in the different categories of SAPOA’s Awards for Excellence, including Innovation and Development, Transformation, Heritage, Overall Green, Other Development and Innovative Merit. In the words of Pieter Engelbrecht in his capacity as Chairman of the judging committee and Director of Development at South Africa’s leading property owner, Growth Point Properties: “Awards recognition is not based solely on architectural appeal, but rather on a holistic approach in that developments need to be economically viable, satisfy the needs of both the investor and user, be aesthetically appealing and enhance the locality in which they are situated.” He says real estate development forms part of the engine of any free marketdriven economy. “It creates wealth not only for the developer, but ultimately also for the country as a whole in that it creates employment, reinforces the

Awards of excellence, both past and future, are awarded to commercial

tax base and provides the infrastructure in which the economy may grow

and industrial industry leaders and project teams for their outstanding

and prosper.”

contributions both to the economy and local communities. Recognition for innovative excellence in real estate is also enhancing the country’s

However, without the necessary grounding taught at the earliest stages

contribution to world-class development on the African continent.

of industry leaders acquiring their professional skills, such high levels of

Innovative professionals and students are required by the South African

achievement would not be possible without the foundations of property

Property Owners Association (SAPOA) to recognise the practical

development firmly rooted in the country’s academic institutions.

implementation of business principles. One example being that greater cost

This year’s awards saw two local universities complementing the impressive

and energy efficiency feeds overall sustainability through refurbishments,

achievements of the private industry. The University of Cape Town (UCT)

redevelopments and new projects throughout the different classes of

took top honours in the Other Developments category for its development of

real estate.

the New Engineering Building that was designed by SAOTA.

Page 47: SAPOA 2015 STANDARDS

Professor Francis Petersen, Dean of the Faculty of Engineering and the

Possibly a future prospect to look forward to in 2015 from the Green

Built Environment, says: “The completion of the New Engineering Building

Building Council SA is a Green Star rating for industrial buildings.

and the newly established laboratories with first-rate equipment gives us a

Growthpoint Properties’ Industrial Division Director, Engelbert Binedell, says

wonderful platform to offer good technical education, perform world-class

that its 2014 award winning development applied the latest green building

research and to innovate.” She says wide open spaces were designed in

technologies to convert a contaminated old foundry into a state-of-the-art

such a way that integration of postgraduate and undergraduate students

warehouse in Epping, Cape Town. The Overall Green award winning

and staff is maximised. “This will ensure that this faculty of UCT continues

Lakeside Office Park redevelopment, designed by AMA Architects, is the

to produce engineering graduates with a solid technical foundation, with

first existing building in South Africa that has been redeveloped with the

an ability to be socially responsive and with a full appreciation for and

intention to obtain a GBCSA Four Star rating.

understanding of safety, health and environment challenges in and around the workplace.”

SAPOA’s category for transformation saw Noswal Hall, developed as Zenprop’s first landmark student accommodation, winning the overall

The Engineering Faculty of the University of Pretoria (UP) took top honours

Transformation category. This building, designed by Empowered Spaces,

in the Refurbishment category for optimum utilisation of space through

accommodates 399 residents across 19 floors and is located within close

refurbishment of existing buildings of the Mining Industry Study Centre in

proximity to the University of the Witwatersrand campus.

a centrally located, but defunct square in the engineering precinct. The

Heritage development was highlighted at the newly constructed military

building was designed by ARC Architects Pretoria to create an on-campus

base depot for the South African Military Health Service (SAMHS) in Thaba

study and information centre.

Tshwane, honoured with the National Overall Heritage award for 2014. As one of only five overall category winners, the Heritage award considers

Leading the way in outstanding property development is industry leader

criteria including engineering, construction, economic viability, sustainability,

Growthpoint Properties, which through its massive contribution at all levels

client and user-client satisfaction, as well as architecture. SAMHS, one of 46

of the industry, continues to set the pace for excellence in sustainability,

entries into this category, achieved top ratings in all of these criteria.

in particular of Green Building Council Green Star Rated developments. As the overall 2014 SAPOA award winner, Growthpoint’s No. 1 Silo at

With the support of industry leaders and a sound representative body, South

the V&A Waterfront scooped three top awards, including corporate office

Africa is likely to see higher levels of development in 2015.

development and the overall green award. The office sector in particular continues to provide a springboard for improved development and upgrading of associated services. Growthpoint Properties’ Office Division Director Rudolf Pienaar says quality space that incorporates green building provides sustainable alternatives. Benefits to building occupants include a stimulating working environment, while owners and tenants enjoy reduced utility costs. A new developing office trend is to create Activity Workspace areas, where rotation of staff and standing workstations optimise both the utilisation of floor space and productivity levels. However, Growthpoint Development Manager for Industrial Leon Labuschagne says non Green Star redevelopments within the industrial sector prove that redevelopment costs less than new developments, but can offer the same standards to achieve lower rentals, without sacrificing quality. Redevelopment in older industrial areas is a trend throughout South Africa, as seen at Growthpoint’s development of Ellerines’ high-tech facility in Port Elizabeth. As winner of the Industrial Developments category, this project proves the benefits of tailor-made client solutions, such as reusing properties as opposed to leaving them in a derelict state. Unnecessary urban sprawl is avoided while the use of recycled older materials enhances energy efficient and environmentally sound building practices.

SAPOA 2014 winner of Other Developments New Engineering Building at the University of Cape Town. Picture courtesy of Michael Hammond

The Sky’s

THE LIMIT

If you can envision it, you can create it. Leapfroggers from around the country gathered in Durban at the Maharani and Elangeni Hotels for our 2014 Convention. The “Sky’s the Limit” fun evening was the kick-off to a hugely successful few days with the highlight being the Gala Dinner at which our top achievers were honoured.

Congratulations to all the award winners!

National winners include (seen from top left to right) • • • • • • • •

Administrator Of The Year - Elaine Swart (Bloemfontein) Icebreaker Of The Year - Sam Howard (Durban Central) Andrew Stephenson Leapfrogger Of The Year Hanlie Rohrbeck (Bloemfontein) Best Young Office - Durban Central Rental Team Gross Comm - Harry van der Linde (Pta East) Rental Agent by Gross Commission - Lina Carraggi (Jhb North East) Partnership Highest Commission % Henning van Aswegen & Kobus Bosman (Gordon’s Bay) Agent Highest Commission % - Ada Bester (Vereeniging)

• • • • • • • • • • •

Country Partnership No. of Sales - Dana Wasowicz & Christine Dent (Vanderbijlpark) Country Office Unit Sales & Value - Gordon’s Bay Metro Partnership Unit Sales & Value - Frances Connoly & Adele Berelowitz (Milnerton) Metro Office Unit Sales - Pretoria East Metro office Sales Value - Milnerton Country Agent Unit Sales - Simon Rachomanyane (Vanderbijlpark) Country Agent Sales Value - Floris De Kock (Polokwane) Metro Agent Unit Sales - Bernie Muller (Edgemead) Metro Agent Sales Value - Steven Van Rooyen (Milnerton) Metro Franchise Of the Year - JHB North East Country Franchise Of the Year - Polokwane

Page 50: P RO P ERT Y P RO F ES S I O N A L N EW AG EN T S O N T H E B L O C K

PROPERTY PROFESSIONAL

NEW AGENTS ON THE BLOCK WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST CHALLENGING ASPECTS OF THE JOB? Currently what I love most about the job is handing over the keys. Seeing the look on the faces of first-time homeowners is rewarding. Learning how property processes work has been equally fascinating. The most challenging aspects of the job have been the emotional intensity, which

LOLITA JOHNSON R E / M AX ELI T E

accompanies each deal, on the part of the seller or the purchaser and encountering agents who lack integrity. WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/BROKER AND WHY?

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?

Integrity, patience, humility, self-motivation, a double dose of tenacity and

When the opportunity presented itself to me via a friend, I felt it would be

a non-stop ‘can do’ attitude are in my opinion important characteristics for

a good source of income. As a freelance graphic designer, I realised that

a great estate agent.

embarking on a totally different career would be both challenging and WHAT ARE SOME OF YOUR CAREER GOALS?

demanding.

•

To be a top seller in my market

•

Be the agent of choice in my market

•

Have a business based on referral

guard comes down. Also, I find it very rewarding to play a small part in people’s lives when making life-changing decisions. The most challenging aspect of my job is good time management and to create a healthy work

BIRGIT DU PLESSIS R E / M AX LI V I N G

and life balance. It is also difficult to really care and not to become too emotionally involved at the same time. WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/BROKER AND WHY?

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?

A great broker has excellent listening skills and is somebody who

I worked for many years in sales and marketing in the tourism sector and

understands that being in sales means being proactive not reactive.

have developed good problem solving skills. I closed many challenging

A great broker has grit and exudes confidence, and understands that

deals doing business around the globe. The exhilarating experience of

whilst people expect 100% service, they remember you by the small

negotiating contracts has always been my passion. Once I decided to quit

extras you do for them.

the corporate world, what better way to do what I like doing best – close real estate deals!

WHAT ARE SOME OF YOUR CAREER GOALS? I enjoy travelling and I always make a point of finding out what the

WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST

property market is doing in whichever country I visit. I would like to

CHALLENGING ASPECTS OF THE JOB?

increase my network of agents worldwide and increase my foreign

The most enjoyable aspect of my job is to negotiate and close a sale for

buyers’ sales. I want to grow my business through referrals with the result

my clients and to see the relief on everyone’s face once it is done and their

of creating a steady income stream.

Page 52: P RO P ERT Y P RO F ES S I O N A L N EW AG EN T S O N T H E B L O C K

WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST CHALLENGING ASPECTS OF THE JOB? I enjoy seeing the joy in a client’s eyes when they have found the one. Closing the deal is not always easy!

PATIENCE MNISI PA M G O LD I N G P RO P ERT I ES, BA R B ERT O N

WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/BROKER AND WHY? A passionate and professional agent can go a long way; however, it involves dedication and hard work... so if it is just a job, you might not last long enough in challenging markets.

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?

WHAT ARE SOME OF YOUR CAREER GOALS?

I enjoy working with people in general and I love houses in their different

Some of my career goals involve growing my personal property portfolio

forms, so being in property was a natural choice.

and being a partner/owner in a franchise.

Managing your time and tasks can be difficult as an agent, as it’s a fast paced and continually changing industry. This can sometimes be frustrating and time-consuming. It’s therefore imperative to prioritise and

HELEN WATTS

learn how to handle situations from others with more experience.

R E / M AX LI V I N G

WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/BROKER AND WHY? A great agent/broker has to be efficient and know how to manage their

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?

time effectively. Agents should be flexible, friendly, self-motivated (have

I’ve always been fascinated with the real estate industry. After completing

a certain degree of perseverance, as the industry will have its ups and

my degree in Construction Management, I discovered my passion for

downs) and be dedicated to constantly educating themselves on changes

property consulting and possibly moving into property development one

in the property industry.

day. It’s a challenging industry and I particularly enjoy dealing with the legal aspects of property.

WHAT ARE SOME OF YOUR CAREER GOALS? ‘Service excellence’ is key – I want my clients to always have me in mind

WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST

every time they think of property due to my friendly, dedicated and honest

CHALLENGING ASPECTS OF THE JOB?

client service. I want to always be knowledgeable about the industry

I thrive on variety and, with this career, every day is different. I’m

and hope to continually work hard at pushing the limits. Lastly, I want

constantly on the go, visiting different places and meeting interesting

to challenge myself to be innovative in the industry and will endeavour

people. I really enjoy working as a team at RE/MAX – the brand and my

to uphold my brand and the profession as an agent in a positive and

colleagues offer me continuous support to help me achieve my goals.

respected manner.

NUMBERS TO KNOW

1 OF 4

The World Bank rates the South African economy as an upper-middle-income economy, one of only four African countries in Africa, the others being Mauritius, Botswana and Gabon. ShowMe – The South African Economy

WE’VE PLANNED FOR YOUR FUTURE. WITH US.

SELL MORE PROPERTY. At Harcourts, we provide our people with all the support, systems, training and technology they need to sell more real estate in today’s competitive market. We understand that real estate success is dependent on various factors, from forming strong paths of communication to having access to leadingedge technology and world-class marketing. Harcourts ensures that all of our consultants are well equipped to take their real estate career to the next level. So if you’re ready for real estate success, join Harcourts.

FIND OUT MORE ABOUT A FUTURE WITH US, CALL: CHRISTEL WILLETT // 082 568 0782 JOINHARCOURTS.CO.ZA

Page 54: P RO P ERT Y P RO F ES S I O N A L T O P P ER F O R M I N G AG EN T S

PROPERTY PROFESSIONAL

TOP PERFORMING AGENTS WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? Firstly, it is vital to partner with a supportive brand that you feel proud to represent. Also, make sure that you are always well

LYONELLE VENTER JAW I TZ P RO P ERT I ES, SEA POINT

groomed and look professional. You should also have a general understanding of basic contractual law, together with the knowledge of the psychology behind sales and marketing. DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? TELL US ABOUT IT. I was working in central London as a rental broker and had

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?

introduced a foreign client to a very expensive apartment to rent. I

•

Wake up energised.

knew the couple liked it but I was flabbergasted when they insisted

•

Prospect. Prospect. Prospect!

I present a generous offer to purchase to the owner. Needless to say,

•

Be honest and ethical. You may lose a sale but you will gain

the apartment was sold.

a client for life. WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU WHEN

MAKING A SUCCESS OF THEIR CAREERS IN PROPERTY?

YOU FIRST STARTED OUT IN PROPERTY AND WHY?

The telephone is your best friend. Overcome your fear of cold-

To stop stressing about things completely out of my control. You cannot

calling. Make mistakes – make lots of mistakes – but learn from them.

control the market, but you can positively influence peoples’ experiences

Listen to top performing agents and copy them verbatim until you feel

of our industry and how they perceive estate agents.

comfortable with your own telephone style. You can have a bad day, you may have a bad week, but you’ll never have a bad month or bad year if you stick to the correct procedures and adopt a good attitude.

WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY? You can move companies, but never move areas. You will build up an area over the years and learn that repeat business is so important. Always keep positive – your next sale is around the corner!

CYNTHIA TODD S EEF F, R A N D B U RG

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? Computer and your cell phone. All these systems mean you are in touch with the sellers and buyers instantly and can offer prompt and efficient service at all times.

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS? Immediate response to any inquiry whether on the web, via SMS or phone –

DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? TELL US ABOUT IT.

that way you keep on top of the buyers, sellers and the competition.

It was in Northcliff and I can still remember how I thought it was a huge price

Be yourself – honest, friendly, sincere and always happy to help.

(R550 000). I was so excited that I could have sold Buckingham Palace to

Always keep in touch with the sellers and buyers on a regular basis –

the Queen! It was an amazing feeling – I can’t believe that the house would

feedback is very important.

now sell for R3.5-million!

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Page 56: P RO P ERT Y P RO F ES S I O N A L T O P P ER F O R M I N G AG EN T S

•

Send and receive emails.

•

Manage appointments via a calendar.

•

Search the internet, for researching the client.

•

Take photos.

•

Use a calculator.

JONATHAN KLIMEK

•

Use a torch.

•

Write in a note pad.

J H I P RO P ERT I ES, G AU T EN G

•

Navigate via GPS.

•

All in the palm of your hand, literally, which provides you with flexibility and the ability to respond to clients’ needs quickly and professionally.

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS? What I have found to contribute largely to my success includes:

DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? TELL US ABOUT IT.

•

Clear communication, which includes listening. It is important

Yes, I have fond memories of my first deal. At the time, there was

for both me and the client that I fully understand the client’s

a newly built light industrial mini-park in Midrand, which I presented

requirements. The client must have the confidence that I know his/

to a particular client. The units were perfect. They were modern, neat,

her requirements. Once I fully understand the client’s requirements, it

ideally sized and had great exposure to the main road, which was

is important that I clearly communicate to the client that the process

exactly what my client was looking for. My client was so impressed

will be going forward, with the focus being on the next action point.

with the units that he said to me that he would like to purchase two

Faithfulness, which means being true to my word. If I commit to

units, one for each of his businesses. He didn’t want to pay VAT so

respond to a client by a certain time, I need to ensure that I respond

we structured the deal in such a way that enabled him to achieve a

to the client at that specific time. There is a common saying, which is

zero rating on VAT. In order to achieve this, the properties needed to

very true: “Don’t over-commit and under-deliver”.

be seen as a ‘going concern’, which means that they needed to be

Urgency – treat every client as if they are the only client that you are

generating an income. This meant that my client’s trading companies

dealing with. Respond quickly to the client’s requirements. Keep the

would first rent the two units and his property holding company would

momentum through the entire deal process.

buy the two properties with his trading companies being the tenants,

•

providing the income, which enabled my client to achieve a zero WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU WHEN YOU FIRST

rating on VAT. This, of course, meant that this one deal ended up

STARTED OUT IN PROPERTY AND WHY?

being four deals: two leases and two sales.

I wish someone taught me the entire deal process, and guided me through my first few deals. Because if I compare myself to the brokers

WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT MAKING

with whom I have been involved in training, they have grasped the deal

A SUCCESS OF THEIR CAREERS IN PROPERTY?

process and property industry far quicker than I ever did.

Surround yourself with other experienced brokers so that you can learn from them. Ask as many questions as you can and don’t be

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD HAVE AT

afraid of making mistakes; if you do, just ensure that you learn from

THEIR DISPOSAL IN TODAY’S MARKET AND WHY?

them. Be faithful, dependable and act with urgency.

•

A smart phone which enables you to:

•

Receive and make phones calls.

NUMBERS TO KNOW

R6.5 BILLION

Foreign buyers bought almost R6.5bn worth of properties in South Africa last year, and not all of it is in Cape Town or Johannesburg. Fin24 – Foreigners buy property worth R6.5bn in SA

Page 57: F I R S T-T I M E B U Y ER S

Page 58: T E C H T O O LK I T

TECH TOOLKIT SnapScan App

debit cards. To use SnapScan, you download the app for Apple, Android or BlackBerry, and add your credit card details by taking a picture of your card

AVAILABLE FROM:

For free, all you need is some data to download it

and creating a pin. You can then use the app to scan a QR (quick response) code – a type of barcode – in a store and make payments. You only need to enter your card details once, then your payment information remains securely

LOVE IT: SnapScan is the app that has everyone talking and

in the app, so your card details are never transmitted to the merchant (so

just to confirm its success, it won the MTN Business App of the

no need to worry about your card being skimmed/copied). Powered by

Year award for 2013. The big idea is that customers can make

Standard Bank, SnapScan works with debit cards and credit cards, and

in-store payments using their mobile phones instead of credit or

there are no sign up, set-up or installation fees. There is also no monthly fee payable. The company makes its money by charging a small transaction fee to the retailer on each purchase. This fee varies. NOT SO MUCH: The only downside is that it’s not everywhere just yet, but

only in select merchant stores. Given a little more time, however, word of this clever app will soon spread! IN A NUTSHELL: This very user-friendly app takes purchasing goods and

services to a whole new level. In short, SnapScan allows you to: • Make quick and convenient payments using only your phone • Buy at shops and markets without handing over your card • Pay with your debit or credit card (no extra wallet) • See a list of previous transactions • Locate great merchants close to you (across South Africa)

Dropcam Internet Wi-Fi Video Monitoring Camera AVA I L A B LE F RO M :

Around R3 599

L OV E I T: The Dropcam Internet Wi-Fi Video Monitoring Camera

helps you stay connected with what you love, no matter where

you are. In less than 60 seconds, you’ll have it set up and securely streaming high-definition video to you over Wi-Fi. Use it to watch your home, your baby, the dog or your business. Every camera comes with night vision, HD video, two-way talk and digital zoom. Paired with secure online cloud video recording (CVR), you can watch live and recorded videos from anywhere on any device, such as your Apple Mac, Windows PC, iPhone, iPad, iPod touch or Android device. All you need is a Wi-Fi network paired with the free and easy-to-use Dropcam App.

N O T S O M U C H : Not much to say here – good security is priceless. I N A N U T S H ELL : It is a good product at a reasonable price.

Page 59: T E C H T O O LK I T

Samsung Galaxy Note 3 AVA I L A B LE F RO M : R 6 699 L OV E I T: It has been voted as one of the best phablets

on the market. With a powerful 2.3GHz quad-core

Snapdragon 800 processor and 3GB of RAM the Samsung Galaxy Note 3 is one of the highest performing handsets

My Data Manager – Data Usage App

around, while its 5.7-inch 1080p Super AMOLED display

AVAILABLE FROM:

from the front it looks like the standard Samsung that we

is sharp and impressive. When it comes to appearance, love, however, when you turn it over, it appears the rear is

For free, all you need is some data to download it

made of leather. It isn’t, of course, it’s that famous plastic of LOVE IT: My Data Manager is a popular app that will help you take

which Samsung is so fond. The finish is textured to give it

control of your mobile data usage and save you money on your monthly

the appearance of leather and

phone bill. Use My Data Manager every day to track your data usage,

actually provides some much

monitor what apps are using the most data and ensure that you don’t go

needed grip.

over your monthly data bill and incur unnecessary charges. N O T S O M U C H : It’s tough

KEY FEATURES OF MY DATA MANAGER:

not to love, however, it does

• DATA TRACKER: Monitor your data usage on mobile, Wi-Fi and roaming

come at a hefty price and is certainly not for those with

• APP TRACKER: Know what apps are using the most data

petite palms or skinny jeans.

• HISTORY: Track historical consumption to ensure you are on the right

The plastic leather-textured rear

mobile data plan

is also a bit on the tacky side,

• ALARMS: Set custom usage alarms to avoid overage charges and

although this may boil down to

‘bill shock’

personal preference.

• SAVE MONEY: Maximise how you use your data and get more out of your plan

I N A N U T S H ELL : It has

all the bells and whistles that NOT SO MUCH: One small drawback – the app will not work if moved

we have come to love from

to an SD card. It only takes up 1.1MB of space, so this isn’t a big deal for

Samsung and if phablets are

most users.

your thing, then this one wins hands down.

IN A NUTSHELL: This is a great app for those who use a lot of data

and have received a ‘bill shock’ one too many times.

NUMBERS TO KNOW

300 000

All prices are approximate.

The University of South Africa (UNISA) is a pioneer of tertiary distance education and is the largest correspondence university in the world with approximately 300 000 students. The SouthAfrican.com - Top 10 facts you didn’t know about South Africa

Page 60: D EV EL O P M EN T U P DAT E

DEVELOPMENT UPDATE CITY OF THE FUTURE Demand for accessible information technology and cost-effective integrated public transport systems will see Modderfontein become a centre with population densities similar to some of the world’s major urban centres. So says Anthony Diepenbroek, CEO of Zendai Development South Africa which, as part of the Hong Kong-listed Shanghai Zendai Group, will be driving the project to develop 1 600 hectares of land in Modderfontein, near Johannesburg over the next 15 years. Modderfontein New City, the new growth node in Gauteng and South Africa, will cost an estimated R84-billion in the process of moving from drawing board to reality. “The South African city of tomorrow will be driven by the twin needs of access to information technology and viable integrated public transport systems. Both of these factors are aligned to prevailing development principles, which demand that population densities maximise economic delivery of services – the higher the population density, the less the cost of delivering what are the cornerstone requirements of any major new urban development. South African lifestyles are changing. Many households are facing challenges associated with urban sprawl. People

“THE GROWTH OF SOUTH AFRICA’S MIDDLE CLASS DEMANDS THAT A NEW INTEGRATED APPROACH TO DEVELOPMENT IS ADOPTED.” Anthony Diepenbroek, CEO of Zendai Development South Africa

wishing to own homes are finding that to afford a suitable home they are forced to live outside urban centres. The penalty for this is that numerous families are allocating an estimated 40% of their monthly income to

able to benefit from a city that has been purpose-designed from the

transport. In some cases, this challenge restricts the dream of home

ground up - something that has been achieved successfully in other cities

ownership for many families.

in the world,” he says.

“In this context, a reduction in transport costs, as a percentage of monthly

He also points out that what must be taken into consideration is that

income, allows the saving to be diverted into housing and household

Africa is growing rapidly. Estimates indicate that the present population

expenses. Clearly, if this is done in an environment with convenient

will double by 2050, when the continent will be home to about 25%

access to recreational facilities, the overall outcome becomes an attractive

of the world’s population. The middle class is burgeoning across the

living and working environment,” says Diepenbroek.

continent. South Africa, proportional to its population, has the largest middle class on the continent, boasting about 8.3 million people.

“When these factors are taken into account, the advantages of a

“The growth of South Africa’s middle class demands that a new

sustainable (properly planned and developed) ‘smart city’ at scale

integrated approach to development is adopted. The previous system of

come into its own – a planned city offering mixed land use that offers

creating arteries along which people travel to existing urban centres from

convenient commuting to work, is in close proximity to educational and

outlying areas will simply not be able to cope in the medium to long-

healthcare facilities and provides access to well-appointed apartment

term. A system of high-density spines is the only sustainable solution; this

living (offering units for sale or rent),” adds Diepenbroek. According

solution is aligned to the City of Johannesburg’s ‘Corridors of Freedom’

to him, build this on information systems that are ‘piped’ at relatively

spatial vision. “Considered development like Modderfontein New City is

low cost into buildings and access to a truly integrated public transport

where the future lies,” explains Diepenbroek.

system, and the South African city of the future is born. The development plan for Modderfontein New City therefore presents “Although higher densities are perceived to be extreme by some South

a natural solution to population pressures. It is located at a natural

Africans, the difference is that, until recently, the country has not been

growth point within Johannesburg, which is growing exponentially,

and will enable the existing Gautrain Rapid Rail network to connect

A RARE OPPORTUNITY IN HIGGOVALE

Modderfontein to the Johannesburg CBD, Sandton, Pretoria and OR

An exciting opportunity has arisen in the Cape’s highly sought-after suburb

Tambo International Airport. Attention to the development of additional

of Higgovale with the renovation of Queensbury Mansions,a three-storey

logistics complementing and extending the Gautrain network will further

residential complex consisting of 12 sectional title apartments. This project

enhance mobility.

is exclusively marketed by Jawitz Properties and handled by property consultants Darice Loeb and Lolly Unterslak of Jawitz Properties City Bowl.

With Modderfontein New City predicted to become home to an estimated 100 000 people when it is completed and offering functional

“The existing building has been completely transformed inside and

development zones that complement urban living (from a bustling CBD to

excavated underneath to accommodate and provide for secure parking,”

an international conference and exhibition centre) catering for work, live

says Unterslak. “There are very few sectional title developments available

and play with the most extensive access to urban open space in Gauteng,

in this exclusive area, and we have had plenty of interest from prospective

the stage is being set for the creation of a city that will rank with the best

buyers,” Loeb adds.

in the world. Developed by Peerutin Architects, prices for the apartments range from “Modderfontein plans to serve as a 24-hour district; a place where

R1.6- to R4.6-million (transfer costs apply) and the apartments have one, two

people will live and interact in an urban environment that is convenient,

or three bedrooms. Each apartment is unique, ranging in size from 43m2 to

efficient and safe. It seeks to be a place where people will want to live,

107m2, each with a different layout. Larger units have up to two bathrooms

work and enjoy the benefits of various recreational offerings on their

and each apartment offers either a terrace, balcony or garden space.

doorstep,” concludes Diepenbroek.

“Despite only being a three-storey building, a lift has been added on the premises. There are also two staircases, one on either side of the complex,” Unterslak says. Prospective purchasers who get in on this development have a variety of countertop and flooring options from which to choose. The apartments have an open plan feel and the outdoor space on offer makes the building petfriendly, which is a bonus in the city. Registration of transfer and occupation is expected at the end of November. “This is an excellent investment opportunity for buyers,” says Francois Venter, director of Jawitz Properties. “Rental yields, as well as demand for property in the City Bowl, make this an attractive investment option.” Queensbury Mansions enjoys close proximity to trendy Kloof Street, Table Mountain, the MyCiTi bus stop in the area, as well as top schools and the Cape Town Mediclinic.

Page 62: D EV EL O P M EN T U P DAT E

Construction is well under way on the interchange, which will allow easy access to the Cornubia Business Hub. The interchange is due for completion in February 2017.

NEW PHASE RELEASED FOR DEVELOPMENT IN UMHLANGA

In the heart of Durban’s northern development zone, the site is also located

An exciting mixed commercial portion of land ideal for a range of

on the GO!Durban route, eThekwini’s Integrated Rapid Public Transport

commercial, retail and business park development is being made available

Network, which will provide convenient access for staff and customers

by Tongaat Hulett Developments, the property development operator within

alike. Well-established businesses currently operating on Flanders

the Tongaat Hulett stable.

Drive, which flanks the Cornubia Business Hub, include Sage, several motor dealerships such as BMW and Kempster Ford, as well as Mount

The new release forms part of the greater Cornubia development, a

Edgecombe’s Virgin Active gym.

multibillion rand collaboration between the eThekwini Municipality and Tongaat Hulett. The first of its kind in KwaZulu-Natal, Cornubia is a fully

“We are looking to sell this to prospective developers who would be

integrated human settlement development.

able to construct suitable facilities for a range of end users. We believe that this represents an approximate R3-billion investment opportunity

The opportunity, representing 85 000m2 of commercial bulk, comprises

for the right entity,” explains Mike Deighton of Tongaat Hulett

five stands of varying sizes and is situated immediately to the north of the

Developments. This entity could ideally develop the entire precinct,

upmarket Mount Edgecombe Estate, forming part of the western expansion

maximise the opportunity and, by acquiring early access to a

of Umhlanga Ridge. Located adjacent to Investec’s new Cornubia Shopping

highly attractive precinct likely to shape the future of the surrounding

Centre currently under construction and the future Cornubia Town Centre,

area, play a leading role in the expansion of Umhlanga Ridge over

the site is expected to benefit from enhanced access due to interchange

the next few years.

upgrades. The N2/M41 interchange is currently under construction and the new Flanders/M41 interchange is scheduled to commence in September

Karen Petersen, development director responsible for Cornubia says,

2015, for completion in February 2017. Other arterial connections in the

“The bulk earthworks contract has already commenced and is expected

pipeline include a link to the Umhlanga Ridge Town Centre and the N2 via

to be completed in November 2015. Construction of internal services –

a further interchange on the N2 to the north of Gateway.

such as roads, telecommunications, water, sewerage and electricity – is anticipated to start in October 2015.”

CONGRATULATIONS

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Page 64: WO R D O N T H E S T R EE T

WORD ON THE STREET “I will not disappoint ... I don’t have to reinvent anything, I just have to carry on from where Ms Marcus left.” Lesetja Kganyago, South African Reserve Bank (SARB)

governor from 9 November 2014 (Fin24: ‘Lesetja Kganyago takes reins as the new Reserve Bank Governor’)

“We found that while the overall awareness of card fraud is very high, 42% of South Africans still admit that their PINs are not kept secret and that they share their PINs [mostly with their spouses, 85%]. These numbers are higher than in 2013 when 38% shared their PINs.” Athaly Khan, head of fraud

Photo: Elmond Jiyane, GCIS

at FNB Credit Card (Fin24: ‘Credit card fraud declines’)

“The electronic system we plan to implement through the Electronic Deeds Registration Bill will allow us to achieve universal, countrywide access to deeds registration and surveyor-general’s services.”

“Strikes are not a unique South African phenomenon. However, when it runs into a period of five months it’s a wakeup call to all stakeholders.” Mineral Resources Minister Ngoako Ramatlhodi

Rural Development and Land Reform

(Fin24: ‘Ramatlhodi: Platinum strike wake-up call for all’)

Minister Gugile Nkwinti (Fin24: ‘New bill Photo: Sowetan

NUMBERS TO KNOW

R6.5-BILLION

Photo: The South African

to fast-track property registration’)

Foreign buyers bought almost R6.5bn worth of properties in South Africa last year, and not all of it is in Cape Town or Johannesburg. Fin24 – Foreigners buy property worth R6.5-billion in SA

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