Pos­i­tive out­look for res­i­den­tial prop­erty mar­ket in 2014

Weekend Argus (Saturday Edition) - - PROPERTY -

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.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.