Neighbourhood 23 JUNE 2019
PROPERTY & LIFESTYLE
Prospects await Post elections, property experts are cautiously optimistic about market conditions, but advise buyers and sellers to keep some basics in mind, page 2
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PROPERTY FOCUS: BUYERS VS SELLERS
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PROPERTY NEWS
23 JUNE 2019
Neighbourhood
Property focus
Give or take
Buyers’ vs sellers’ market: Where are we now?
WORDS: KIT HEATHCOCK
IMAGES: SHUTTERSTOCK
Confidence is already up in the market since the election and we’ve begun to see some normality returning. It is, however, still a tough market – and a buyers’ market – with buyers being bullish with the prices they’re offering. Those sellers who aren’t desperate to sell are holding on until the market recovers. CHRIS TYSON, MD, TYSON PROPERTIES
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Neighbourhood
PROPERTY NEWS
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Buyers are advised to pay attention to value in relation to what’s on the market. Buy the home that offers the best in relation to location and requires the least building interventions. Sellers are advised to ensure their home stands out when competing with the homes for sale in close proximity. DR ANDREW GOLDING, CHIEF EXECUTIVE, PAM GOLDING PROPERTY GROUP
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n the months leading up to a general election, the property market traditionally slows down to wait-and-see election paralysis. Now that the elections are over, property experts are cautiously optimistic, although they agree that recovery will take time. “While it’s anticipated that – in the wake of the favourable election outcome – the residential property market will rebound, in reality any significant recovery is only likely to materialise in the later stages of the year after the seasonally quiet winter months,” says Dr Andrew Golding, chief executive, Pam Golding Property group. “The post-election environment is likely to be better for the property market generally, however, a number of specific questions arise, including how the land reform issue will play out in terms of policy amendments or variations, and whether other marketfriendly reforms are introduced.” Adrian Goslett, CEO, RE/MAX of Southern Africa, is similarly cautious. “It’s possible that we’ll see increased activity within the property market as investors become more certain about our country’s economic and political future. However, this is dependent on the sorts of policy decisions that emerge from the newly elected parliament – land reform, corruption, and SOE governance being hot topics to watch.”
Economic factors The Reserve Bank’s Monetary Policy Committee’s decision on 23 May to keep the repo rate unchanged at 6.75%, leaving the mortgage rate at 10.25%, is another factor in the equation, but Samuel Seeff, chairman, Seeff Property Group, feels this was a missed opportunity to kickstart economic growth with a rate cut. “Following the conclusion of what’s largely seen as a successful election, not much has changed. Good news and a positive injection are needed to get the economy and property market back on track.” In early June reports indicated that the economy had contracted by 3.2% in the first quarter and that the GDP growth outlook for the year has been adjusted to 1%
by the Reserve Bank and Moody’s. This news makes a fast recovery less likely. “It means the property market will remain weighted by the economic conditions and sellers will have to wait a bit longer before prices will start rising again,” says Seeff.
Lower end of the market Golding expects the lower end of the market to continue to hold up well relative to other sectors, especially the smaller sectional title properties favoured by students, first-time buyers and down-scalers. “These sectors of the market would also be those that would benefit most from a rebound or turnaround in the economy. First-time buyers are typically most sensitive to prevailing economic conditions and are a strong potential source of demand for the market. In areas where market price corrections have improved the perceived affordability of a property, it seems time on the market is declining and buyers are showing a willingness to purchase.”
Tips for buyers and sellers The experts agree that we’re currently seeing a buyers’ market and now is the time to make the most of it. “My recommendation to buyers in the market is to act on the opportunity and buy as soon as possible before the market lifts again,” says Chris Tyson, MD, Tyson Properties. “Provided our political situation remains stable, the gap for getting a good deal on real estate is closing,” says Goslett. “For those who are able to afford it, there truly has not been a better time to invest in property than right now. The longer buyers delay entering the market, the longer the property market has time to recover and the higher price they’re likely to pay on a property.” For sellers who don’t have the option of waiting it out, Seeff advises, “Those who are buying, are looking for an irresistible price and sellers should be ready to capitalise on
that demand. The reality of an overstocked market means that although there’s an expectation of improvement, indications are that the market will continue to trade relatively flat for the rest of the year with price growth forecast to remain in the range to 4% at best.” “For sellers, there has never been a more important time to partner with a well-connected and knowledgeable real-estate professional than right now,” says Goslett. “Given that most South African sellers find themselves in a buyers’ market right now, it’s imperative to partner with a professional who can negotiate with buyers on a seller’s behalf and help sellers fetch as close to full value as possible.”
Seeff Celebrates it’s
2019 National Conference CONGRATULATIONS! At it’s 2019 Annual Licensee Conference, recently held at Arabella Country Estate, Seeff’s best performing licensees were recognised at a Gala Dinner event
“ Well done to each
and all of you” - Samuel Seeff
LICENSEE OF THE YEAR / MARKETER OF THE YEAR / HIGHEST MARKET SHARE / HIGHEST UNITS SOLD (DIVISION 4) / SMART ACADEMY / OVERALL MARKETER OF THE YEAR - RICHARDS BAY Elaine Chetty and Silven Chetty pictured with Samuel Seeff
MOST IMPROVED LICENSEE OF THE YEAR DIVISION 4 : QUEENSBURGH
MOST IMPROVED LICENSEE OF THE YEAR DIVISION 1 : UMHLANGA
Michelle Vermeulen and Jan Vermeulen pictured with Samuel Seeff
Anni Eisele, Warren Eisele and Brett Botsis pictured with Samuel Seeff
RENTAL LICENSEE OF THE YEAR / DIVISION 5 MID SOUTH COAST
CHAIRMAN’S AWARD : STUART MANNING
Joleene Giraudeau and Michelle Harris pictured with Samuel Seeff
Stuart Manning pictured with Samuel Seeff
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PROPERTY NEWS
23 JUNE 2019
Neighbourhood
Moving on Moving house can be a traumatic experience – cupboards are emptied, decisions are made about what gets donated to charity, and costs keep on climbing WORDS: NICOLA JENVEY
IMAGES: SHUTTERSTOCK
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s tempting as it is to simply “call a man with a van” when moving house, taking that route could be the embodiment of penny wise, pound foolish as relocating triggers a myriad of issues.
Costs
According to international removal company Stuttaford Van Lines, cost is important but be wary of false economising. Each household differs in its composition and is subject to individual criteria including size, packing requirements and destination. While the primary service may be packing, loading, transportation, delivery and unpacking, less expensive options allow customers to pack up the nonfragile items. AGS Worldwide Movers allows clients to pack and then double-check items like books and linen, while the company packs the fragile items. “Packing and loading household goods is an art and removal companies charge for this expertise. Accredited removal companies use industry-specified packing material to ensure safe transportation,” Stuttafords’s website states.
Insurance
Insurance is critical to the process with most companies having specific limited liability clauses within their contracts. According to Stuttafords, this means it’s incumbent on the owner to ensure adequate in-transit insurance cover as there are inherent risks not within the removal company’s control. AGS adds that clients must accurately value their inventory and not underestimate their belongings, as reimbursement is based on the declared value. Taking out all-risk goods-in-transit
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insurance, covers transportation and storage between two points, initiating from pick-up at the old residence to unpacking on the other side. “Moving is stressful enough – don’t make it harder by taking unnecessary risks. Buy an insurance policy for peace of mind. Cheaper is not better and the insurance companies typically only cover for a total loss as in fire, hijacking or a vehicle overturn,” Stuttafords recommends.
Moving internationally
This is a complicated process and mistakes can cost you dearly. Stuttafords says in this case value over cost is essential as inexperience can trigger errors for a consignment. The company must be well-versed in the destination’s regulations and restrictions and generate confidence of their experience in their client. AGS states in the “highly competitive” international removals market, clients must compare quotes on a like-forlike basis including shipping routes, transit times and rates of exchange.
Check list
Begin preparations three months before departure, particularly for international relocation, by contacting the removal company for a pre-move survey to estimate volumes; book moving dates; consult the doctor and the veterinarian about vaccinations; dispose of items not being transported; identify forbidden items like alcohol, medicines, ivory and books; cancel magazine subscriptions, lights and water accounts, phone accounts, medical aid, insurance and school registrations; and keep aside passports, documents, tickets and the personal effects you do not want to sent via the removal company.
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PROPERTY NEWS
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More designer homes in Le Parc L
e Parc Residential Estate in Paarl, Western Cape, has achieved sales to the value of R100m in its first 10 months, and the developers have now launched Phase 3 of Le Parc’s designer homes. Says Martin van Rooyen of Le Parc Residential Estate, “This phase offers 30 two-, three- and four-bedroom turnkey homes designed by Malherbe Rust Architects, with a choice of single- or double-storey options, with total home sizes ranging from 104m 2 to 202m 2 . The single-storey homes have two, three or four bedrooms and two or three bathrooms, while the two-storey homes offer three bedrooms and two bathrooms – all have either a single or double garage.” Two finishing moods for the interior design have been created by Niche Bespoke Interiors: modern
contemporary (light, crisp, neutral tones and white) and modern French (classic, light and dark finishes). Fixtures include Hansgrohe taps and Geberit wall-hung toilets, while the kitchens offer 90cm-wide Smeg freestanding ovens with integrated extractors and engineered stone countertops. Each home includes laminated and large-format tile flooring, LED lighting, and fibre-tohome connectivity, as well as a grey water system. Rainwater harvesting measures are also available. According to Van Rooyen, buyers can expect the unexpected when visiting Le Parc. “Nothing currently on offer in this segment in Paarl is as unique, and for this reason we have attracted a diverse set of buyers. We believe we’re providing the best possible residential lifestyle offering in Paarl and setting a new benchmark in the area.”
Massive development underway for the KZN North Coast W
hile Ballito has always been known for its prestigious beaches, family adventure attractions and dolphins on the North Coast shoreline, the area has also grown exponentially in recent years and several new developments have either been completed or are well underway.
PE: Ready for investors I
n the past few years, Port Elizabeth has grown into an attractive option for savvy property investors as it provides them with the perfect combination of an enviable coastal lifestyle at affordable prices. According to Clifford Oosthuizen, MD, Westbrook, there are a number of reasons you should consider investing in the area. Firstly, PE achieved impressive house-price growth of 6.3%, only 3% behind that of Cape Town. All property types in the area have also significantly increased in value over the past 10 years. The area is becoming attractive to first-time buyers, with lower prices making it a low-risk investment but with good returns. And with most new homeowners falling in either the 36 to 49 age group, or the under-35 group, PE is becoming a dynamic city with a growing younger market. There has also been significant demand for rental homes in the area. PE boasts all the traditional big-city amenities at a rental price point that is more affordable than other metropolitans in the country. Of course, the natural beauty in PE has made it the perfect city for
the development of lifestyle estates that can combine security, modern amenities, and affordable pricing in a central location. One example is Westbrook, which spans 128ha, and nine “pockets” of development, combining residential, commercial, and retail environments. PE is a platform for industry, with the multibillion-dollar industrial Coega Industrial Zone (IDZ) enabling an environment for growth. With an enviable logistics network with rail and harbour access, Coega offers a world-class support system to any organisation looking to expand operations globally. Multinational organisations like Volkswagen and Isuzu are also investing billions of rands in the region with manufacturing plants. Furthermore, the Nelson Mandela Bay Municipality has introduced an incentive policy designed to attract investments in a number of areas – from tourism and agriculture to construction, logistics and automotive industries. Additionally, the Department of Trade and Industry and other government departments have also developed a list of measures that can be used in conjunction with other incentive programmes.
Tim Johnson, principal, Seeff North Coast, says Ballito is now a soughtafter investment destination and their branch sees many people investing in property here – either to let out as short-term or longterm rentals, or to reside here and commute to work weekly. “Following the opening of King Shaka International Airport in 2010, there’s been huge growth in air traffic where estimations now predict that passenger arrivals are expected to hit the million mark by 2025.” In May this year British Airways announced direct flights to and from King Shaka to the UK adding to the growing list of direct international flights which has encouraged many business people and investors to buy homes on the North Coast. “Ballito’s permanent population has grown from 12,000 to 30,000 residents
in just over ten years and even though over R2,7bn in residential sales per annum has been achieved over the past few years, an additional R3bn has also occurred within the new estates between Umhlanga and Ballito in the past 18 months,” Johnson says.
R76bn in developments
He continues that this upsurge in property sales and the substantial increase in population numbers were some of the mitigating factors that prompted the Collins Group and the Royal Shaka Property Group – who joined forces over a decade ago – to purchase one of the largest privately owned stretches of coastal property in South Africa. “The area – covering some 5,000ha between Sheffield Beach and Blythedale and boasting around 16km of coastline – has been earmarked for massive residential, resort and commercial property developments to the tune of approximately R76bn.” Their mega project vision encompasses seven development zones which will be developed over the next 20 to 25 years. Phase 1 of the first zone – Zululami Luxury Coastal Estate comprising 140ha – is now well underway. This phase comprises 350
stands as well as several sectional title developments. Once these offerings have been taken up a second phase of Zululami will be launched.
Equestrian estate
A second 411ha development named the Seaton – that’s modelled on an equestrian theme – will also be launched by this champion development company. Seaton is set to become one of South Africa’s most ground-breaking equestrian estates with about 3,776 homes, an equine district, a lifestyle village and a private school and college node. Part of the plan includes an Olympic-sized indoor show-jumping arena, polo fields and a horse training venue. Johnson adds that even though both these developments are located on separate land, they’ll be strategically adjoined and together they’ll provide over 34,000 residential units. “Other strategic opportunities will include beach resorts, retail developments, theme parks and commercial and mixed-use property developments. The momentum for growth on the North Coast is further exemplified by an estate adjacent to Zululami – the Elaleni Coastal Forest Estate. This 45ha bespoke development with large areas of natural forest and an abundance of flora and fauna comprises 128 sites and will include two distinctive clubhouses that offer braai pods, a lap pool, a children’s pool, tennis court, and a children’s play area. Extensive walking paths and marked trail runs are also part of the offering.”
Club Med hotel
Johnson concludes that there are several additional boutique estates still in the pipeline which further demonstrates that there’s strong development leadership on the North Coast who are setting the benchmark by focussing on “design-led” liveable products with holistic long-term views. “Adding to this is the recent exciting announcement that Club Med is to debut on the North Coast with their first hotel ever to open in South Africa – construction is starting next year.”
ONLINE PROPERTY AUCTION 3RD JULY Bidding opens 8am 52 PROPERTIES ON AUCTION | VIEW THE FULL NATIONAL CATALOGUE AT BIDX1.COM OPENING BID R550K
DECEASED ESTATE
WITBANK, MPUMALANGA
Family home. Duly instructed by the executors of Estate Late: CA Roux - Master’s reference: 012782/2013. ON SHOW 23 JUNE 2-5PM: 64 De Kock Avenue.
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DECEASED ESTATE
SOMERSET WEST, WESTERN CAPE
Prime development site in high demand area. Duly instructed in the Matter of Rocacube (Pty) Ltd (In Liquidation) - Masters Ref Number: C137/2019. 9 967 m2. Prime land ready to be developed.
DECEASED ESTATE
DECEASED ESTATE
RESERVE PRICE R1.5M
OPENING BID R550K
WOLMER, PRETORIA
RUSTENBURG, NORTH WEST
Property on large stand. Duly instructed by the executors of Estate Late : AJJ Oosthuizen - Master’s reference: 006041/2017. 457 Jopie Fourie Street.
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Family home. Duly instructed by the executors of Estate Late: B R Mualefe. ON SHOW 23 JUNE 2-5PM: 25 Mongo Huma Street.
1 276m 2
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RESERVE PRICE R3.2M
BEDFORDVIEW, GAUTENG
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1 276m 2
1 004m 2
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RESERVE PRICE R350K
MARSHALLTOWN, GAUTENG
Secure bachelor apartment in soughtafter Marshalltown with rental income. ON SHOW 23 JUNE 2-5PM: Unit 730 Colosseum, 140 Commissioner Street.
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OPENING BID R550K
CRAIGHALL, GAUTENG
Deceased Estate - designer home in upmarket Craighall. Duly instructed by the executors of Estate Late: Curtis George Goetz (Masters Ref Number 024029/2018). The property is designed for easy living and entertainment with covered patio, garden and pool. ON SHOW 23 JUNE 2-5PM: 28 Talbragar Avenue. 3
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1 674m 2
RESERVE PRICE R120K
RESERVE PRICE R310K
Distinguished family home with a feature gas fireplace and over-sized windows. Patio, manicured garden, solar-heated pool and carport. ON SHOW 23 JUNE 2-5PM: 7 Ibis Avenue, Essexwold, Dowerglen. 4
LIQUIDATION
9 967m 2
1 090m 2
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OPENING BID R4M
39m 2
9
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495m 2
BLOEMFONTEIN, FREE STATE
Commercially zoned property in Hartbeesfontein (Old Telkom building). 2 Rooms, outside toilets, fully fenced with 2 meter high fence and gate. 2
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RESERVE PRICE G4 R750K / G5 R850K
HARTEBEESFONTEIN, NORTH WEST
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WITBANK, MPUMALANGA
9 Bedroom home in Tasbet Park. Property zoned Commercial, currently being run as a Guest House. Featuring a JoJo tank, security cameras and parking for 7 cars. ON SHOW 23 JUNE 2-5PM: 5 Balalaika Street, Tasbet Park.
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991m 2
2 Ideally located industrial stands. Ready to be developed. 4 918m2 and 4 572m2 of Prime Industrial land
4 918m 2
4 572m 2
BANK AUCTIONS FAMILY HOMES INVESTMENT PROPERTIES APARTMENTS VACANT LAND
BIRD VALLEY ESTATE, KWAZULU-NATAL
Vacant land in Bird Valley Estate with views of the mountains and wetlands.
SELECTION OF BANK PROPERTIES FULL NATIONAL CATALOGUE AVAILABLE ON BIDX1.COM
2 680m 2
For further information, contact: BidX1 Jordan Brown Heinrich Moller Theodore de Beer
info@za.bidx1.com | + 27 (0)21 140 3541 081 714 1102 082 492 6254 064 518 4184
See auction terms and conditions on bidx1.com. See guide prices on the online catalogue. In proud association with Pam Golding Properties.