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| Regulator Will Ensure National Credit Act Promotes Fair Access to Credit |
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Concerns have been expressed that the National Credit Act (NCA) — which has been gradually enacted since 1 June 2006 and will come into full effect on 1 June 2007 — will hamper economic growth and housing development in unintended ways
Some housing developers fear that financial institutions will be setting unreasonably strict requirements for applicants to qualify for project finance, while others worry that the checking of the credit exposure of future borrowers required by the Act will be a protracted process that will slow down home-loan approvals, resulting in lost sales.
In response to these concerns, the National Credit Regulator (NCR), which was established by the NCA in June last year, gave the assurance that countering concerns through educating the credit applicants about their rights and the implications of the Act, investigating and solving complaints and settling disputes, were precisely what the Regulator has been tasked to do.
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It seems the sale of Cape Town’s Waterfront to an influential offshore consortium has reignited sentiment for the local property market
The most significant of the deals (and probably one spurred by the new ownership
developments at the V&A Waterfront) took place ‘just down the road’ with the Hospitality Group
paying R105 million for the 4-star Protea Hotel Victoria Junction.
The deal was struck at an
effective 10% discount to the R116 million value accorded to the property by independent
valuators JHI Real Estate.
It seems Hospitality Group have clinched a rather good deal with
forecast earnings from Victoria Junction penciled in at R6.8 million for the six months to end
June 2007 and R11.3 million for the full year to end June 2008.
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| Volatility Ahead in the South African Property Market |
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Catalyst continues to favour funds that exhibit high-quality and sustainable income streams, excellent disclosure and transparency and management with a proven ability to perform
Last year, listed property funds gave a total
return of 28,6% to December 31, down from 50,04% in 2005, when they were the best-performing
asset class. That's according to calculations by Catalyst Fund Managers.
Octodec, one of the
two funds managed by Alec Wapnick and his son Jeffrey in Pretoria, was the top performer (with an
income return of 9,61% and a total return of 56,66%, assuming payouts were reinvested), followed
by Des de Beer's Resilient (7,76%, 48,25%); the FM's tip for 2006, ApexHi B in the Madison
stable (9,62%, 45,58%); the Wapnicks' other fund Premium (8,29%, 45,17%); and Sanlam's Vukile
(9,91%, 41,94%).
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| Cape Town Stadium Given the Green Light |
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Plans to build a new stadium in Cape Town to stage matches in the 2010 World Cup were given the green light when the provincial government dismissed a series of appeals against its construction
Tasneem Essop, planning and economic development minister in the Western Cape provincial government, said
that a rezoning application for the land where the 68,000-seater stadium should be built had also
been approved.
"Far from having a substantial detrimental effect on the environment, overall
the new stadium and urban park on the Green Point Common will have a beneficial impact on the
local environment and will benefit the broader Cape Town community," she told reporters.
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| Future of South African Property Looks Positive |
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2006 was a relatively good year for property in South Africa, and even though the appreciation figures were not as high as previous years, some areas around the country have continued to outperform the national average
Elite and sought after suburbs in both Johannesburg and Cape Town have been faring exceptionally well. For example, according to Knowledge Factory's SAPTG statistics, Llandudno has seen a yearly growth of 38,06% for the year 1 November 2005 to 31 October 2006,
while Westcliff has seen appreciation of 51,58% during the same period. This trend is expected to continue, even with all the warnings of additional interest rate hikes. Absa's latest House Price Index notes that a nominal house price growth of 12,7% year-on-year was recorded in October compared to the revised growth rate of 13,5% in September. This brought the average price of a house in the middle segment of the market to R830 700.
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| Victoria & Alfred Waterfront Gets $1bn Boost |
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The Dubai World and London & Regional Properties consortium has announced plans to invest more than US$ 1 billion in the V&A Waterfront over the next four years, following its successful purchase of the development last month
The consortium has outlined a three-stage development strategy which will see improvements to the Waterfront starting immediately.
The first stage, over the next six months, will see landscaping and beautification measures, additional car parking space, commercial facilities and improvements to pedestrian access to the area.
The second stage, over the next three years, will ensure the V&A Waterfront is one of the highlights of the World Cup 2010, with the development of new hotels and resorts, creation of promenades, and entertainment areas, marinas, new shopping developments and new apartments and offices.
The third stage will see the development of new facilities to consolidate V&A Waterfront’s status as a leading global resort, with potential elements including a new yacht club and further marina development, a cruise ship terminal, a train station and improved connections to the airport.
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| Foreign Property Investment Crucial |
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The sale of the landmark V&A Waterfront to a foreign consortium is likely to act as a catalyst to further foreign investment in South Africa
2010 has made foreign investment in South Africa property a viable
long-term investment that will benefit the country.
According to Alastair Collins, chief executive of Davis Langdon & Seah International's Global Board and managing partner of the International Group that operates throughout Europe, the Middle East, Africa, Asia, Australia and
the US, nothing is more topical or pertinent to South Africa than the sustainability of
international investment in its property.
"South African property is at centre stage," he say,
"and the Star Trek tractor beam of 2010 is a big draw."
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| Retail Set for Sparkling 2007 |
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In spite of tighter economic conditions spurred on by a rising interest rate environment, the South African retail property market is still expected to deliver a good performance next year
And fears early last year
that the retailer-led development of new shopping centres in Gauteng, Western Cape and, to a
lesser degree, KwaZulu-Natal, would lead to an oversupply of retail property have failed to
materialise. But offices and industrial property are expected to outperform retail property next
year.
First National Bank property strategist John Loos says the total return on retail
property would “slow mildly” next year, given that a slower growth year is expected in terms of
consumer demand.
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| Wozani Ridge Coastal Estate News Release ~ Kwazulu Natal South Coast an Investors Dream |
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Popular beach areas on the KZN South Coast such as Margate and Uvongo are already an investors' dream but savvy buyers are increasingly looking to areas further north, such as Port Shepstone and Hibberdene
This is the view of Karen Anderson who has just opened a new Aida franchise serving these areas, who says prices are more reasonable on the northern stretch of the "Hibiscus Coast" - and relatively cheap when compared to properties in, for instance, Uvongo.
"Hibberdene especially is about to explode with new business, residential and other developments. There is a discernible growth in demand and enough development land to satisfy this growth for the foreseeable future.
"An existing supermarket was recently upgraded and enlarged and there are already plans in the pipeline to build another store belonging to a different national chain.
| Wozani Ridge Coastal Estate Press Release, 26-05-2006 |
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