Positive outlook for residential property market in 2014
in mortgage lending by the major banks. However, the economy is still fragile, consumer indebtedness is high and, from a political perspective, there is a general election looming,” Golding said.
Nevertheless, he remained cautiously optimistic that some real, although modest, houseprice growth would take place next year – the first since 2008.
Golding said the property market has performed pretty much in line with expectations over the past year, with slow and steady improvement.
According to Lightstone’s analysis, house prices nationally have increased by an average seven percent year on year to September 2013, with a CPI rate of six percent.
“Sectional title price growth overtook freehold in March and has enjoyed a stronger growth rate since, with sectional title growth at 7.7 percent year on year and freehold six percent. Coastal properties slightly outperformed non-coastal properties at 6.7 percent compared to six percent, and the affordable market continued to perform really well with double-digit growth rates throughout the year,” he said.
Golding said PGP was continuing to expand into Africa. In Goodluck Jonathan City in Abuja, Nigeria, PGP is marketing a huge new housing estate, where the first phase consists of 100 000 units. A new residential golf estate in Uganda will provide the agency with a further springboard into Africa.
PGP also has offices in Namibia, Zambia, Kenya, Botswana and Zimbabwe.
Abroad, PGP markets properties in London, Eden Island in the Seychelles and Mauritius, and lately in Spain, which has promulgated legislation that will grant automatic Spanish residency to non- European Union citizens who i nvest 500 000 (R5 million) in property.
He says a key attraction for South Africans is that investors will have unrestricted access to move within the Schengen zone. PGP’s international and projects division has formed an association with a local company that will provide PGP buyers with a broad range of n e w a n d e x i s t i n g h o mes mainly in Barcelona and Costa Brava, as well as the islands of Mallorca and Ibiza.
“With a number of new residential developments in the pipeline, the first new development we are launching to the South African market – in conjunction with Savills – is the White Angel in Ibiza, which has an entry level price of just under 400 000 to 700 000 (R4m to R7m),” said Golding.
“London remains a premier destination for South Africans, and PGP is taking part in road shows to market a range of residential apartments and townhouses in Greater London in the most popular price range from just £295 000 (R4.8m). At the now well-established Eden Island in Seychelles, 440 units have been sold and we are down to the last 20 percent or 130 units.
“In Mauritius, at the recently launched Le Parc du Mont Choisy near Grand Baie we have sold 45 units at an avera g e price of US$ 1 million (R10m), and at Amalthea at Anahita resort in Mauritius, homes can be bought for under US$600 000 (R6m),” he said.