Business Day Home Front 22 May 2015

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FRIDAY, MAY 22 2015

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ONLINE FORUMS UNITE RESIDENTS

CARBONCONSCIOUS TRAVEL

WHY BRITAIN IS UNLIKELY TO EXIT EU

PROPERTY FRENZY IN THE UK

New transfer duties’ effect on sales How has the raising of the transfer duty ceiling affected property sales in the past three months? Some say it’s too early to tell, but unprecedented demand has been reported in certain regions WORDS: ANNE SCHAUFFER :: PHOTOS: ISTOCK, SUPPLIED

E

verybody agrees the elimination of the transfer duty for buyers in the R750,000and-below price band is only positive. How could it not be? This is where the bulk of South African buyers sit, and according to Samuel Seeff, chairman of Seeff, this lower end of the market — the sub-R1,5m sector — makes up about 80%-plus of annual house sales.

Says Seeff: “The lowering of the transfer duty exemption threshold was a most welcome move on the part of the finance minister and this, along with the continued provision of the ‘gap’ housing subsidy, are both vital in encouraging greater home ownership. It’s especially important at the lower end of the market where, as we all know, the housing need is dire. It’s also important in view of the fact that SA has a relatively fast-growing middle class, but a middle class that in many cases is struggling with high household debt levels.

“This is also the most challenging sector of the market (especially sub-R800,000), where buyers are often first-timers who struggle to make their household budget balance, let alone afford bond repayments.”

CONTINUED ON PAGE 6

Whether you’re an investment buyer or looking to settle in the Cape, let us help you make the smart move today!

seeff.com

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*Total sales for 2014.

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LIFESTYLE

Friday May 22 2015

LIFESTYLE

Keeping up with the i-Joneses Online forums, from Cape Town’s Rosebank to Joburg’s Parkhurst, are helping to unite residents and build communities WORDS: GENEVIEVE PUTTER :: PHOTOS: RICHARD BUCKINGHAM (PARKHURST VILLAGE), SUPPLIED

G

one are the days when neighbours in suburban SA met only to solve security problems or address criminal activities in their neighbourhoods.

Harking refreshingly back to small-town life (ironically, via the global internet), today’s online forums and similar technology are galvanising residents to better their communities on many levels. We take a look at three of these groups.

SERIOUSLY SIMPLE The Rosebank Neighbourhood Watch (RNW) in Cape Town’s Southern Suburbs has been active for 23 years, and unlike many of today’s online community forums, its members rely solely on mass mailers, or “newsflashes”, delivered to the 572 e-mail addresses on its database.

Says Douglas van der Horst, deputy chairperson of the RNW: “The RNW was established because of a significant crime spike at the time, but the majority of our messages today are labelled ‘Community’ and cover an extremely wide range of

matters that are of interest to people living in the area, such as the next full-moon ride around the common, cottages to let, ‘Pet rat needs new home’, ‘Dog found’, ‘Keys found’, refreshments for ADT bicycle patrollers and so on.”

The RNW’s website could use an update, admits Douglas, but he believes the newsflashes do a good job of keeping everyone in the loop. While not as techsavvy as other community forums, the RNW is igniting residents’ involvement in the neighbourhood equally well.

“Comments circulated via the newsflashes by residents have led to community involvement in upgrading the play equipment at the Rosebank Village Green, cleaning up overgrown vegetation around the bowling greens and along the Liesbeek Canal and litter clean-ups,” he says.

HITTING ALL BASES Parkhurst Village aka Parkhurst Residents and Business Owners Association (PRABOA) was launched in 2011 with a very low membership. Over the

RNW by the numbers Including flats, there are about

450

households in the area Based on the assumption that the average occupancy is

2,5

people, the total number of residents in the area is roughly

1,125

The yearly levy is

R50

a household The RNW area covers

23

streets

past four years, however, it has gained more than 300 members and has become a highly organised, proactive community forum that communicates via a very informative website, newsletter, Twitter and Facebook feed as well as WhatsApp. Yearly membership is R365 a household, a minimal amount if you consider what is achieved by the residents who run the forum.

“The money is used to cover the costs of communication to residents via our various channels.

It pays for town planningrelated activities, such as zoning hearings, objections and appeals, and it allows us to underwrite community events and projects,” says PRABOA chairwoman Cheryl Labuschagne.

Aside from the various events for the neighbourhood children, such as Halloween and Easter, and the yearly village fair, in 2014 PRABOA invested more than R40,000 in the local park’s play area.

The Go Green project is PRABOA’s focus this year and involves developing

LIFESTYLE Friday May 22 2015

renewable energy methods and sources for the neighbourhood.

On the crime and safety front, there is SafeParks, a security project that includes the installation of CCTV and licence plate recognition cameras throughout Parkhurst. Residents are grouped by street, each with its own WhatsApp group and street captain, so that when a suspicious or criminal activity occurs, residents are alerted and can take extra care.

Most impressive, though, is the Fibre to the Home programme, which has seen the roll-out of fibre-optic cables to the neighbourhood for high-speed internet, making Parkhurst “SA’s most connected suburb”. parkhurstvillage.com THE FULLY INTEGRATED PLATFORM Three things distinguish OurHood from other forums: it’s a countrywide digital networking platform consisting of smaller neighbourhood forums; it has an online portal, a Facebook presence and its own app

Parkhurst Village by the numbers

332 is the number of members of Parkhurst Village (based on membership per property, not per person) There are an estimated

2,087

erven in Parkhurst, most of which are private homes The population is about

6,000 The area includes

22

streets, six avenues and seven roads

for Android and iOS devices; and, probably the most impressive feature of all, it allows members to customise their level of involvement.

“There was no single, consistent digital or offline platform for residents to use to connect with their neighbours in SA, or universally, and we saw the opportunity to develop a digital platform to make this happen,” says founder Bruce Good.

The process is simple: on signing up, people are asked to fill in their residential address. Once their information is verified, they join a community forum based on geographically defined neighbourhoods, allowing them access to various features, including the noticeboard, where they can post or read anything of interest going on in their neighbourhood, and the trading post, where residents post items to sell or to buy, or even to borrow or share.

There is also a crime alert function that enables users to post warnings of suspicious activity. This information is then passed on to other residents (if they so choose) via SMS. “We have found that many communities and neighbourhood watch groups were leaving platforms such as Facebook and WhatsApp for a number of reasons but primarily because neither of those services is built for neighbourhood activity,” says Good, explaining the memberengagement function of OurHood’s service. “They don’t compartmentalise content or notifications, and users are quickly spammed with too many unnecessary notifications, whereas OurHood’s users can choose which categories they want to be informed about.”

Since it launched a year ago, 900 neighbourhoods around SA, such as Parktown, Naledi, Sea Point and Manenberg, have joined the platform.

This is a scoop for Good and his team, who believe that enabling more dialogue among neighbours has a knock-on effect. “By creating stronger communities, we can actual build towards a more inclusive society,” says Good. ourhood.com

“In time we want to focus on twinning neighbourhoods across SA, much like some cities are twinned. There is an enormous opportunity for neighbourhoods in more affluent areas to support a neighbourhood in a less established area, in a range of ways”

OurHood by the numbers User numbers fluctuate — some neighbourhoods have close to

Bruce Good, founder, OurHood

500

users, while others are new and just getting going There is an average of

100

sign-ups a day It has received

1,500

Facebook likes

“I feel it is my job to encourage and support community-driven projects rather than to control them. It really is all about connecting people in order to build a community” Cheryl Labuschagne, chairwoman, Parkhurst Residents and Business Owners Association PUBLISHED BY THE CREATIVE GROUP IN ASSOCIATION WITH TMG

The Creative Group CEO: Shaun Minnie shaun.minnie@thecreativegroup.info

Unit G4, Old Castle Brewery, 6 Beach Road, Woodstock, 7925 021 447 7130

EDITORIAL TEAM Editor: David A Steynberg david.steynberg@gmail.com Creative Director: Mark Peddle

A

BusinessDay PUBLICATION

Editorial Consultant: Bridget McNulty Chief Copy Editor: Yaron Blecher

ADVERTISING SALES Michèle Jones Yvonne Botha Susan Erwee Bradley Sparks Jackie Maritz

michele.jones@pamedia.co.za yvonne.botha@pamedia.co.za susan.erwee@pamedia.co.za bradley.sparks@pamedia.co.za jackie.maritz@pamedia.co.za

084 246 8105 (Sales & Marketing Manager) 082 563 6685 JHB (Lifestyle) 083 556 9848 (Western Cape) 073 666 3842 (KwaZulu-Natal) 078 133 5211 (Garden Route)

An International Associate of Savills

MORNINGSIDE GAUTENG R25 MILLION This exceptional home boasts a double-volume entrance leading onto 2 reception areas, formal and informal dining rooms, an upmarket lounge, TV room, plus billiard room and playroom.

These rooms look over an expansive garden with terrace and pool.

Bedrooms 4 | Bathrooms 5 | Garages 4 Lara Nathan 082 787 8706, Roger Govender 083 448 9241 WEB ACCESS HP1218497

FOURWAYS GARDENS GAUTENG R8.99 MILLION On arrival, follow the sound of cascading water into the magnificent entrance hall. Situated on 1376 m² of prime real estate in a quiet cul-de-sac, this property is an entertainer’s dream with a private cinema, patio, bar, heated pool and jacuzzi.

Bedrooms 6 | Bathrooms 6.5 | Garages 4 Natalia Atanassov 084 783 3010, Mark McGowan 083 358 5652 WEB ACCESS FW1150732

BLUE HILLS COUNTRY ESTATE GAUTENG R8.9 MILLION Clean architectural lines and a perfect position combine to create an immaculate family home.

Enjoy voluminous spaces and a large entertainer’s patio with stacking doors leading out to a refreshing pool and indigenous garden.

Bedrooms 4 | Bathrooms 3.5 | Garages 5 Tony Santana 083 654 1268, Leanne Santana 083 273 6881

WEB ACCESS MR1210097

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BISHOPSCOURT WESTERN CAPE R31 MILLION This Provence-inspired home has an abundance of style and breathtaking mountain views. It boasts characteristic French doors, windows and shutters, while the layout provides for ease of living and entertaining on a large scale.

Bedrooms 4 | Bathrooms 4 | Garages 3 Myrna Duveen 082 443 8417, Christiaan Steytler 082 658 0071 WEB ACCESS KW1217429

ORANJEZICHT WESTERN CAPE R17.9 MILLION This magnificent Florentine villa invites you into a world of luxury and history. Domed entrance hall and wraparound verandah. Elegant kitchen with top-of-the-range appliances. Open-plan allowing for modern living and entertaining.

Bedrooms 4 | Bathrooms 4.5 | Garages 3 Andre Stassen 082 928 6139, Rob Maspero 083 447 6660, Bev Josten 082 571 6755 WEB ACCESS CB1215305

ST JAMES WESTERN CAPE R17.5 MILLION plus VAT A St James landmark, “Spray Cottage” has stood watch over False Bay since 1842 and has now been tastefully remodelled to maximise every aspect of its unique position.

Bedrooms 5 | Bathrooms 5 | Garages 5 Sue Rosenberg 083 452 7990, Peter Lombard 072 713 4800, Christian Ligier 082 377 0022 WEB ACCESS FH1203286

INVESTMENT Friday 22 May 2015

Revisiting transfer duties CONTINUED FROM PAGE 1 Myles Wakefield, CEO of Wakefields Real Estate, says: “The average price of property sold in KwaZuluNatal is R900,000, so the reduction in transfer duty potentially affects a big sector of the market. This doesn’t mean that the news opened the floodgates for buyers, but it could sweeten the deal for those already considering buying. It can either assist by providing that all-important additional cash for their deposit or for others, allow them to raise their ‘threshold price’. They can now look at a property that’s R20,000 or so more, which in a market with stock shortages could even be the dealmaker.”

Wakefield says sales figures in March 2015 reflect their highest ever, but he considers it highly unlikely that the transfer duty affected this.

“This sector of the market is experiencing the biggest stock shortage, and therefore the highest escalation in price — supply and demand — so it could be that the reduction in transfer duty in this price band simply counteracts the increased price.”

Andrew Golding, CEO of Pam Golding Property Group, considers Finance Minister Nhlanhla Nene’s announcement to be very good news for home buyers, particularly first-time buyers.

“However,” he says, “this price bracket is often negatively impacted by the banks’

“This sector of the market is experiencing the biggest stock shortage, and therefore the highest escalation in price — supply and demand — so it could be that the reduction in transfer duty in this price band simply counteracts the increased price” Myles Wakefield, CEO, Wakefields Real Estate

lending criteria, coupled with the fact that in the lower price band it appears that buyers may be starting to feel the impact of the recent deterioration in the economy, with inflation and rising costs translating into less disposable income. With less financial flexibility than higher-income brackets, these households are typically more sensitive to changes in the economic environment, but it may also be that this segment is quick to recover when economic conditions improve.”

Seeff considers the ability to secure a mortgage loan as the real “deal breaker”: “The increased appetite on the part of banks to lend — although very responsibly — has also greatly assisted first-time home buyers provided, of course, that they qualify in terms of their credit profile and financial conduct.”

Consensus on whether the new transfer duty has affected sales is that it’s too soon to tell. Says Seeff: “Given that the new transfer duty arrangements only kicked in about two months ago, it’s unlikely we’ll see the effect in an uptick of deeds office transactions, but certainly our branches report strong demand in the sub-R800,000 sector of the market, especially from first-time home buyers.”

Golding too, on reviewing PGP’s activity in this price band in the various regions

“In Johannesburg, markets in this price band are predominantly in the regions in and around the Joburg CBD, and although we have seen a marked improvement in the appetite for CBD properties, this has been cooled by the frustration buyers encounter when applying for finance”

Andrew Golding, CEO, Pam Golding Properties

around the country, hasn’t seen a significant difference in the amount of activity in this price band: “This segment was generally buoyant in 2014 and continues to be very active post the transfer-fee change. The consensus across our network of offices is that, on the whole, the lending climate and affordability of bond repayments tends to influence this sector of the market more than the acquisition costs. Younger buyers are also faced with the challenge of not yet having built up enough capital to put down a deposit, and 100% bonds are rare. In Johannesburg, markets in this price band are predominantly in the regions in and around the Johannesburg CBD, and although we have seen a marked improvement in the appetite for CBD properties, this has been cooled by the frustration buyers encounter when applying for finance.”

Will the new transfer fee structure be the impetus needed to push young or entry-level home owners into making that purchase?

Golding believes it will be one of a few factors that will assist in pushing this market: for example, in combination with a more flexible lending climate, it will certainly drive sales and encourage new buyers to enter the market, as opposed to being forced to rent. But on a positive note, he says: “This price band also attracts investor buyers looking to acquire flats, and as reported by the PGP Boland region, investors are demonstrating an increased appetite to acquire units in this price range, particularly in the Northern Suburbs such as Tyger Valley Waterfront.”

Seeff expects that “the higher transfer duty exemption together with the more positive mortgage market will both continue to drive good demand and activity in this sector, which in turn will prop up the residential sector, keeping it active throughout this year, despite the recent cautions by the banks (FNB and Absa) that an inevitable slowdown of the growth spurt in the market is setting in.”

Analyse it WORDS: PATRICK CAIRNS

Can you find certainty in an uncertain market?

A

ccording to Old Mutual Investment Group’s MacroSolutions boutique, the aboveinflation return earned by South African investors in a typical balanced portfolio between 1929 and 2014 was 5.9% a year. However, it predicts that over the next five years the typical balanced fund may realise a real return of 3.8% only.

This is mostly because markets are already expensive and growth assets such as shares and listed property are unlikely to achieve very high returns from these levels. There is also a great deal of uncertainty about, as the world economy is still battling to find its feet. Analysts are telling investors to expect higher levels of volatility for some time as a number of issues resolve themselves.

As an investor in this environment, the first things to come to terms with are those you can’t control.

Markets are going to be unpredictable, but if you take a long-term view you have to be prepared to sit that out.

There are, however, a couple of things you can control that are worth considering.

The first is the fees you are paying to the companies that look after your money. The difference between paying 1% and 3% a year might not sound like much; however, over 40 years it can mean a 60% variance in returns.

It is vital to remember that

just as earnings compound over time, so do costs, and reducing the fees you pay can have a significant long-term impact on your money.

The simplest way to do this is to include some passive products in your portfolio. Using low-cost indextracking funds together with active strategies or an individual share portfolio can lower your overall costs without affecting returns.

The second thing investors should think about is dividends. Quality companies with good track records and a history of paying dividends are likely to keep paying them out, no matter where we are in the economic cycle or where their share prices are going.

That means that even if the market goes down, these dividends will provide a cushion. As a result, the share prices of these companies also tend to hold up better in downturns.

The best illustration of this comes from the last market crash in 2008. This was one of the worst years in the JSE’s history, where every single general equity unit trust in SA showed a negative return for those 12 months.

The two that suffered the least, however, were funds that focused on dividends. It was a great demonstration of the protection that dividendpaying stocks can provide in tough markets, and one that investors should probably take quite seriously in the face of present uncertainty.

Fund returns in 2008 Fund

12-month performance

MARRIOTT DIVIDEND GROWTH FUND

-4.01%

SATRIX DIVI ETF

-7.55%

AVERAGE EQUITY FUND RETURN SOURCE: MORNINGSTAR

-23.09%

INVESTMENT Friday 22 May 2015

PROPERTY

White River: gem of the Lowveld WORDS: ANNE SCHAUFFER :: PHOTOS: JOY GULLE, SUPPLIED

The small and scenic town of White River in Mpumalanga lays claim to one of the best climates in SA and is a consistent property performer

W

hite River is on the doorstep of the Kruger National Park, so a multitude of tourism and hospitality opportunities exist for entrepreneurs. It’s also close to other major Lowveld tourist attractions such as the Panorama route, Sabie, Hazyview, Barberton, Pilgrim’s Rest, Graskop, Blyde River Canyon and Sudwala Caves.

Residents and visitors alike enjoy various sporting activities such as mountain biking, water activities on the surrounding lakes, motorcycling and hiking, so the region is as popular for its adventure and action sports as it is for wildlife and scenery. Cherry on the top

— the nearby neighbouring countries of Mozambique and Swaziland offer yet another string to the tourism and employment bow.

There’s a varied selection of hotels, guesthouses and bed-and-breakfasts scattered around town.

Joy Gulle of RE/MAX Lifestyle Estate in Nelspruit describes White River as a close-knit community: “The older section of White River retains broad streets, graciously lined with tall, colourful trees, and it’s not uncommon to see monkeys, mongoose and duiker running across the road or peeping from behind a shrub. It’s home to young families, farmers, businesspeople and retirees, and because of the quality of life and excellent schools, many breadwinners establish homes here for their families and commute to work in Mozambique, Swaziland, Johannesburg and beyond.”

Agriculture is one of the main sources of income, “largely the production of tropical fruits, vegetables, flowers and timber”, Gulle says. “But the serenity and beauty of the area has proven a magnet to many well-known artists.”

Di Dessington, principal of Pam Golding Properties White River, agrees about the artistic component, but also points out employment and retail opportunities at the shopping malls of Riverside, the Grove and Ilanga — just down the hill. But the town’s not just a pretty face: “We have exceptional schooling, with Uplands and Penryn private schools and the Flamboyant remedial school, while White River Primary and Rob Ferreira High have both excellent sporting and academic standards.”

Gulle believes property sales in general have remained fairly consistent over the past few years, with most activity being on the secure estates: “Selling prices there start at about R2.5m. Most activity is around R3.5m, but in the past two and a half years we’ve recorded sales of R5.2m and R8.5m. Property price growth has been slightly subdued recently, but properties on these estates have retained their values.”

Dessington stresses the demand for rental: “It’s mainly a result of banks tightening loan criteria.

A three-bedroom home in town will rent out at R8,000, and if it’s on a golf or wildlife estate, from R10,000 to R40,000.

“Estate living is much in demand, with its high security, and the estates are normally sited to take advantage of the scenic beauty of the mountains or one of the many lakeside positions. The most soughtafter would be a twobedroom flat for between R4,500 to R5,000.”

TRAVEL

Hotels go green

Want to help save the world on your next business trip?

Book a room at one of these eco-friendly establishments WORDS: RICHARD HOLMES :: PHOTOS: SUPPLIED

A

long with ticking all the right boxes when it comes to a power shower, decent breakfast and convenient location, hotels across SA are fast embracing the need to go green. And that doesn’t just mean a card in the bathroom asking you to reuse your towel.

Hotel Verde alongside Cape Town International Airport is a leading light when it comes to eco-friendly lodgings. It is the first hotel in Africa to offer carbonneutral accommodation and conferencing. Its projects include vertical aquaponic vegetable gardens that provide fresh produce for the hotel kitchens, waste recycling and composting initiatives.

Rooftop wind turbines and photovoltaic panels generate carbon-free power, while greywater recycling and an electric airport shuttle all help to reduce your carbon footprint.

But the rest is up to you: bicycle machines in the hotel gym generate yet more power that is fed into the hotel’s electrical system. Guests can also earn “Verdino” credits by keeping the air conditioning switched off and recycling waste.

The Vineyard Hotel & Spa in the heart of Newlands, Cape Town, puts plenty of effort into reducing its carbon footprint. Through its Living Green initiative, 98% of all its waste is recycled or reused, while an array of photovoltaic panels on the roof produces solar power for the hotel.

Up in Gauteng, Holiday Inn JohannesburgRosebank is a member of the InterContinental Hotels Group’s Green Engage programme, which enables hotels to monitor and reduce their use of resources, from energy to water.

Likewise, The Peech Boutique Hotel in Melrose is a member of Fair Trade in Tourism SA and has implemented a range of initiatives to reduce its carbon footprint, including solar water heating and using rechargeable batteries in its appliances.

These are small changes that make a big difference, and while you shouldn’t have to forego your hot morning shower when travelling on business, it pays to support hotels that offer it in a manner that treads as lightly as possible on the planet.

NEWS Friday May 22 2015

Eden Island sees 8%-10% growth year on year

R

eaching the final stages of completion, the luxury Eden Island development in the Seychelles has since 2006 sold 480 homes to the value of $440m (about R5.2bn).

Pam Golding Properties Seychelles is busy marketing the final two basins where flats are priced from $450,000 to $895,000 (about R5.3m to R10.6m) for 88m2 to

215m2 respectively. Homes of 250m2 are priced from $1.3m (about R15m) and villas are priced from $2.65m (about R31m) for 317m2.

“Investment in residential property on Eden Island has proven lucrative, with capital values appreciating significantly,” says Chris Immelman, MD of Pam Golding Properties International and Projects

division. “For example, a one-bedroom unit that originally sold for $275,000 in late 2006 would now fetch $475,000 (about R5.6m), a two-bedroom flat of $425,000 now sells for $675,000 (about R8m) and villas that at the outset were priced from about $1.8m are now priced at about $3.5m (about R41.5m). This represents an average 8%-10% year-on-year increase in value.”

Claremont sectional title prices up by almost 50%

S

Townships pipping suburbs

P

ince 2011 Claremont property values have risen by almost 50%.

John Birkett and Steve de Villiers, Rawson Property Group franchisees for Claremont and surrounds, say that in four years freehold units have risen from an average price of R1.995m to an average of about R3.4m, while sectional title units have risen from an average of just more than R1m to about R1.5m.

Rentals have also been healthy, especially in Rondebosch. “A typical twobedroom in The Rondebosch, which in 2013 would probably have been able to achieve rent of R9,500 a month, is renting at up to R13,500 a month.

Even in such lower-profile developments such as River Song and River’s Edge, also in Rondebosch, the average rise in rentals year on year is now about 28%,” says Birkett.

roperty prices in former black townships rose by a combined 11.6% in the six major metros this past quarter, according to the FNB House Price Index.

The main reason cited for the increase was a lack of supply.

“This is up from a revised 9.3% in the previous quarter and was significantly higher than the overall major Metro Regions House Price Index’s (Ethekwini, Cape Town, Nelson Mandela Bay, Ekurhuleni, Johannesburg and Tshwane) growth rate of 7.3%,” according to FNB’s household and property sector strategist, John Loos. “The former townships remain the most affordable areas of the market on average, with an average estimated house price of R323,472.”

But Loos is less optimistic about the

future: “Looking forward, therefore, the expectation of a resumption of interest rate hiking late in 2015, along with an economy battling to achieve even 2% growth, makes it possible that towards 2016 we will see the FNB Township House Price Index’s inflation slowing more in line with overall national trends,” he says.

“Towards 2016 we will see the FNB Township House Price Index’s inflation slowing more in line with overall national trends”

John Loos, household and property sector strategist, FNB

NEWS BRIEFS

Steyn City attracts African and international buyers

I

n just the past two months, Johannesburg’s Steyn City has sold residential accommodation to the value of R1bn in its first phase of development.

Pam Golding Properties, which is marketing the residential properties within Steyn City in partnership with Steyn City Properties, says the highest purchase price achieved thus far has been R15m for a 4,400m2 stand.

More than 70% of the 229 freehold stands made available have already been purchased.

“Steyn City has generated interest from property seekers not only from within SA — predominantly local buyers in Gauteng — but

also from around the world,” says Andrew Golding, CEO of Pam Golding Properties.

“Enquiries have come from as far afield as Switzerland, Denmark, the UK, the US and Ghana, as well as from other African countries.”

n FNB’s Holiday Towns House Price Index shows that in the first quarter of 2015, quarter-on-quarter growth was 2.1%, down for the third consecutive quarter from a high of 3.3% reached in the second quarter of 2014. n Bond originator Ooba reports a 10.3% year-onyear increase in the average purchase price to a high of R1,045,038 in April. “This is the first time since May 2010 that the Oobarometer has recorded double-digit year-on-year price growth,” says Ooba CEO Rhys Dyer.

The average purchase price for first-time buyers rose by 6.2% year on year to R788,953. The percentage of second-time buyers increased year on year by almost 3%.

ADVERTISING FEATURE Friday May 22, 2015

WESTBROOK DEVELOPMENT PROPERTY, PORT ELIZABETH

“Westbrook catalyses a rare quality of indoor and outdoor spaces, offering Port Elizabeth a lifestyle experience that invites you to live, work, shop, learn or play”

New Urban vision for Port Elizabeth A

s the western edge of Port Elizabeth fast transforms itself into a new destination to live, shop, work, learn and play — complete with the soon-to-be-launched regional super mall, Baywest — so the sparkling new suburb of Westbrook has set course to deliver a New Urban vision the likes of which has never before been seen in the Nelson Mandela Bay area.

In a recent statement, the chairman of the parliamentary select committee on trade and international relations, Eddie Makue, defined the Nelson Mandela Bay metro as the next focus area for national growth, citing the province’s booming car manufacturing sector and the Coega development in the Port of Ngqura. The long coastline is a region that ought to be injected with the necessary resources and support from the national government in order to maximise economic benefits, he said.

Supporting these objectives of demand-driven and sustainable growth in the area is master developer Amdec. A privately owned property development and investment business, Amdec is a leading developer of New Urban lifestyle destinations and is the driving force behind the sizeable Westbrook development.

The group’s pioneering portfolio includes the Melrose Arch mixed-use precinct (among the most expensive real estate in the country), numerous other national developments as well as the award-winning Evergreen Lifestyles brand.

Backed by the experience and expertise of Amdec’s 26 years of developing SA’s places to live, work and play, the Westbrook development, which is taking shape on a previously derelict and dormant 128ha tract of land on the city’s western fringe, will comprise 3,500 residential homes spread across nine residential villages. Each village will provide a wonderful variety of homes and townhouses.

“As part of our vision to change the way people live in the Nelson Mandela Bay area, we’re looking to transform a previously dormant urban area into a supportive, community-rich environment, complete with spaces and places that uplift and inspire,” says Amdec development director Cobus Bedeker.

“This confirms not only our confidence, as a national developer, in the Bay, but also our confidence in the residential property market,” he says, pointing to the projects mooted for the Coega industrial development zone and the potential large energy-generation projects earmarked for the greater region.

The heart of the Westbrook development will feature a 160,000m2 mixed-use node or “town centre” that will house a top-class medical facility, a comprehensive retail offering and a business park. The new neighbourhood will also feature a retirement lifestyle estate and will incorporate the area’s Curro private school.

“The suburb will comprise 30ha of open space, ideally lending itself to ‘tomorrow’s spaces’ — expansive parks,

picturesque walkways, bicycle paths and children’s play areas,” says Bedeker.

The Westbrook vision stands tall on the four pillars that set out the long-term objectives for residents: exceptional investment, balanced lifestyle, unparalleled security and a community lifestyle. Added value comes from buying into a safe and maintained environment where purchasers won’t be exposed to the usual threats of badly built homes, old homes needing constant repair, or rising crime.

“We are creating Westbrook to eradicate all these fears and provide a fantastic, stress-free lifestyle for our purchasers. New homes in a new, secure and maintained environment,” says Bedeker. “Westbrook offers an ideal investment opportunity for young families and those looking for a better, more enjoyable and more secure way of life.

It catalyses a rare quality of indoor and outdoor spaces, offering residents, tenants, shoppers and visitors a lifestyle experience that invites them to live, work, shop, learn or play.

“The great news for Westbrook purchasers is that where Amdec has previously created these communities, the capital growth on the investment made by our purchasers has always far outweighed the growth experienced in the surrounding areas,” says Bedeker.

The development also offers economic and social benefits for the greater area.

Cobus Bedeker, development director, Amdec Amdec is in the process of pioneering partnerships with local SMMEs as construction and professional partners and a host of dedicated local service providers.

Over the next 10 years the Westbrook development is set to employ about 3,000 to 5,000 people, either directly or indirectly, helping to strengthen and boost the local economy and support wider plans to bolster economic growth in the Bay area.

“We know that what is built on Westbrook and how it is built will have a lasting impact on the people who live there, the wider local community and the landscape for years to come,” Bedeker says.

As a developer determined to deliver on its promise, Amdec has already spent R400m on Westbrook’s infrastructure development, services and construction.

Progress continues apace, with nine houses already for sale at the Ridge estate.

Key players on this mega-development provide substantial credibility to the Westbrook offering. Absa Capital is a 25% shareholder, while Clifford Oosthuizen, former developer of more than 550 quality homes in Port Elizabeth under the well-known Smallville brand, has assumed the role of contract manager for Amdec.

“We intend to fulfil our promises,” says Bedeker.

“The primary purpose behind the Westbrook offering is to protect the investment made by the purchaser and the safety and wellbeing of their families.

“Added benefits, as Westbrook grows, will be

the convenience factor of amenities, the health and recreational areas and the proximity to nearby services.”

Pristine streets, wellmaintained roads, manicured landscapes and dependable and efficient services — these are just a few of the many aspects ensuring that Westbrook will be kept looking its very

best, year after year.

Committed to helping communities thrive by focusing on local projects that contribute to the prosperity, health and advancement of the many communities we call home, Amdec looks set to deliver to Port Elizabeth a thriving, communityfocused environment backed

OTHER AMDEC DEVELOPMENTS NATIONWIDE

WESTLAKE LIFESTYLE CENTRE, TOKAI

MELROSE ARCH, JOHANNESBURG

EVERGREEN LIFESTYLES VILLAGE, MUIZENBERG

INTERNATIONAL Friday May 22 2015

Brexit: will foreign investors win or lose?

The UK’s continued membership in the EU will come up for a vote in 2017 following the Tory election victory. But an exit might hurt the country more than remaining part of the union would WORDS: ANNA-MARIE SMITH :: PHOTO: MONARCH & CO

S

entiment in England is set against Britain’s leaving the EU in 2017, referred to as “Brexit”. This is consistent with the Tories’ aim of maintaining a prosperous economy while renegotiating terms of membership with the EU in terms of trade, industry and banking. The Conservative Party’s determination not to fold under the pressure of Eurosceptic backbenchers will benefit foreign property investors across all markets.

Prime Minister David Cameron and his party’s commitment to put to a public vote its opposition to the UK’s exit from the EU in 2017 will be the first “in-out” referendum in British history. The country’s EU membership goes back to a referendum called by the Labour Party in 1975.

Britain never joined the single currency, nor did it become a member of the Schengen passport-free travel zone.

The main culprit behind the proposed Brexit is that “legal” immigration under EU law is spiralling out of control.

Hundreds of thousands of foreigners who arrive from Eastern European countries are allowed to enter the UK without work visas.

Economists and business stakeholders concerned with the long-term impact on trade and manufacturing have suggested that yearly

immigrant inflows be kept below 100,000. Opposition parties maintain that foreigners hog an unfair proportion of opportunities meant for British nationals in education, housing and health services.

Economic predictions are, in the unlikely event of Brexit, of a slowdown in property foreign direct investments in the UK. Seen from a residential perspective, there are many options open to foreign owners, as several EU countries welcome South Africans in possession of foreign-residency permits.

A number of South African wealth companies that assist investors with dual-citizenship applications are continuing to expand their services in Europe and elsewhere.

Monarch & Co CEO James Bowling says: “The UK does not have a big problem with foreign property ownership.

In fact, the country enjoys the economic contributions of property owners.”

Although unlikely, should Brexit go ahead, more than 20-million UK citizens who live in EU states will be deemed illegal immigrants. They will be forced to return, while the sales of their property assets will have a negative impact on smaller economies.

One of the many upsides of the Tory victory for foreign owners is that Labour’s

proposed mansion tax has been averted. This would otherwise have come at prohibitive cost to investors and would have had a crippling effect on the property market and Britain’s economy.

First-time home buyers would have benefited from a new Labour policy to give locals the “first call” on half the new homes in their areas, while foreign buyers would have had to foot higher tax bills.

Retirees have been in the pound seats since the announcement by the Chancellor of the Exchequer, George Osborne, of the pension revolution announced on Easter Monday this year.

This new policy allows UK pensioners to invest posttax retirement savings as they wish. This could lead to first-time home ownership for some, while others may seek a more affordable and warmer lifestyle in a popular EU region such as Spain, Portugal or Italy.

There is, however, talk of an additional agreement among EU leaders to curb “benefit tourism”, which allows citizens of one state to use the public services of another.

The strong link between the UK’s financial sector and the commercial market segment, estimated to be worth £59bn (about R1-trillion), has long cemented considerable

foreign investment, with specific interest from the US. Economists are of the opinion that while it remains most unlikely that the UK will exit the EU, it will have a negative impact on business and the property industry as a whole.

The recovery of the UK commercial sector from the recession is evident in the number of new investors, including South African buyers, returning to the market. A recent survey completed by CBRE UK shows that more than 60% of investors in UK commercial property believe that their investments would be less attractive should the UK exit the EU. Only 6% of UK investors and 4% of non-UK investors — out of a total of 387 foreign and domestic property investors who participated in the survey — believe this would be a good thing.

One of the best solutions, says Bowling, would be if the UK tried to renegotiate with Brussels and revise the agreement so as not to leave the EU but to have more control and less freeflow by not signing the Schengen Agreement.

Economists warn that uncertainty about the UK’s EU membership is set to prevail both during the build-up to and after the final vote is taken.

The numbers The Tories’

2017

referendum will be the first “in-out” referendum in British history The Labour Party called a referendum

1975

that in initiated the UK’s EU membership in its current form More than

20-million

UK citizens live in EU states

The commercial market segment in the UK is estimated to be worth

£59bn

(about R1-trillion)

INTERNATIONAL Friday May 22 2015

“The UK does not have a big problem with foreign property ownership. In fact, the country enjoys the economic contributions of property owners”

It was reported that house prices rose by an average of £100 (R1,888) a day in April this year, boosting the average selling price to nearly £200,000 (about R3.7m)

James Bowling, CEO, Monarch & Co

Tory win sees luxury home buying frenzy The spectre of a mansion tax on London properties has disappeared WORDS: LEA JACOBS :: PHOTO: REUTERS

E

state agents servicing the upper echelon of London’s property market are celebrating David Cameron’s recent victory at the polls with as much gusto as the rest of the Conservative Party, given the surge in sales of highend homes in some of the city’s most exclusive areas.

One agent stated that she hadn’t slept on election night because her office had managed to sell property to the value of £60m (more than R1bn) within 24 hours. She wasn’t the only agent to see buyers champing at the bit to get in on the action — another sold two properties to the value of £29m (about R550m) during the same period.

What can only be referred to as a buying frenzy started as soon as the exit polls indicated that the Conservatives would win and it became evident that the Labour Party’s threat to introduce a mansion tax on properties costing above £2m was thus a non-issue.

Luxury-property buyers who wanted to beat the anticipated post-election price

hike started making offers, while sellers who had been holding back quickly took advantage of the situation so that homes were sold as soon as they were listed.

Property wasn’t the only winner. Stocks and sterling surged following the victory.

A leading London estate agency saw its share price rise by 12%. Agency Douglas & Gordon has estimated that the price of London residential property above the £2m mark could rise by as much as 20% during the next year and double within the next five years.

Savills, meanwhile, has forecast that the luxury market will rally by about 23% over the next five years.

Interestingly, reports written days before the election indicated that owners of luxury homes in London were “slashing” prices in order to offload their properties amid fears that a Labour government would take power. At the time, the Telegraph reported that 40% of properties sold in the more affluent areas of London went for less than their market

value. Those who were intent on buying in areas such as Belgravia, Knightsbridge, Mayfair and Chelsea took full advantage of the uncertainty, demanding further reductions at the point of sale.

Although the renewed interest in the London luxury property market may have been welcomed by those who have the capital to invest in high-end homes, the news isn’t that good for the average British buyer.

It was reported that house prices rose by an average of £100 (R1,888) a day in April this year, boosting the average selling price to nearly £200,000 (about R3.7m) and undoubtedly making it more difficult for younger and first-time buyers to get a foot on the property ladder.

Obviously, not everyone is happy that the Tories have swept into power once again. However, the people have spoken, the investors are happy and those who are fortunate enough to own property in the nation’s capital will undoubtedly be smiling all the way to the bank.

HOMEFRONT

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