Real Estate Investor Magazine South Africa December - January 2014 | Page 20

PROPERTY PREDICTIONS

In 2014

THE EXPERTS PREDICT...
Samuel Seeff, Chairman, Seeff
“On the back of the increased activity this year, there is good reason to be positive about the outlook
for the housing market in 2014. Market conditions are the healthiest since the economic down turn
with more buyers at show houses, multiple offers and better prices for sellers in the primary sector
and, stock shortages an almost universal challenge for agents.
As we head into 2014, there is much to be upbeat about and, while too early to talk about recovery
especially in view of the wider economic landscape, there is more balance in the market. If the
demand persists, sellers can look forward to shorter selling times and good offers and we may even
start seeing some double-digit price growth in the high demand areas.”

Marna van der Walt, CEO, Excellerate Property Services
“Looking at the year ahead, it is evident that the prevailing challenging economic trading conditions
of the past several years, coupled with significantly increased energy and other costs such as
municipal tariffs will continue to see a strong emphasis on the reduction of operating costs from a
commercial property owner’s perspective. As a result, the concept of a bundled service offering (from
reputable service providers) for landlords, particularly investors with large property portfolios, will
receive prominence as a means of achieving maximum cost-effectiveness.
In the years ahead we also see the potential for increasing long-term building efficiencies - especially
around ‘greening’ buildings for long-term operating cost savings, as well as opportunities for
increasing international interest in the South African market - as we comply with international real
estate regulations with the conversion of property loan stock structures to real estate investment trusts. We also anticipate a new trend
in regard to residential investment with the formulation of residential funds that will list on the JSE. These funds will consist of various
residential types of properties, for example social housing and student accommodation.
Furthermore, there will be increasing expansion into Africa. As the various property markets in Africa expand and increase their service
offering so will the need for additional services. These services are new to the markets and will create a new set of challenges and
potential income stream.”

Louw Liebenberg, CEO, Payprop
“We expect the current supply and demand mismatch of rental properties to continue. Continuation
of this supply shortage is likely to keep annual increases above inflation in the 8% to 10% bracket.
However we are concerned that this will put already-stretched consumers under further financial
strain, which may, in the medium term result in deteriorating payment data if agents do not apply
diligence in tenant selection. On the regulatory front we expect the EAAB clampdown on illegal
agents to start in earnest and the closing of commission payment channels by banks and transferring
attorneys starting to insist on only paying commissions to agencies who hold valid FFC’s. SARS
reporting for the rental market is also likely to be a hot topic that may have major ramifications for the
industry and the way they report owner earnings to the Receiver.”

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December January 2013/4 SA Real Estate Investor

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