Real Estate Investor Magazine South Africa July 2014 | Page 23

REI Residential
Residential sector contributes R104 billion to economy
Residential property contributes a staggering R104 billion – more than half of the R191.4 billion total contribution of the
total property sector - to the South African GDP in 2012. This means that South Africa’s economy and the country’s fiscus
benefited to the tune of R20.1 billion in taxes from the residential property sector – extending to transfer taxes in property
transactions and monthly rates and taxes.
The value of property transactions, referred to as ‘direct expenditure’ in the research, sees the residential property
industry come in at just over 46 billion, while the non-residential property industry records just over R43.9 billion. A total
of 234 419 residential property transactions valued at R172 billion were recorded. High value properties (R700 000 to
R1.5 million) constituted the bulk of the transactions.

These were the results of research stretching over 14 months compiled by Investment Property Databank (IPD) and
released by the Property Sector Charter Council. Using research from Statistics South Africa, the council pegs the overall
size of the property sector (including different sectors) at R4.9 trillion. The report estimated the size of the economic
activity in the property sector in terms of annual income and expenditure flows generated by the sector.

Valuable Input

Adrian Goslett
CEO
RE/MAX of Southern Africa
Many property buyers within
South Africa are naming
security as the number one
determining factor when
choosing a home to buy. This
has led to security estates
becoming a highly sought after
choice among homebuyers.

www.reimag.co.za

Laurie Wener
MD, Western Cape
PGP
Banks appear to be gaining
confidence in lending, which
is good news for all categories
of buyers, and most especially
for first-time buyers wishing to
gain a foothold in the property
market. This growth trend
is evident despite the recent
interest rate hike, making it all
the more encouraging.

Lance Chalwin-Milton
Joint MD
High Street Auctions
Accumulating wealth is a
given goal for most people.
While the journey to achieve
this general and often lofty
goal differs for each person,
property remains a straightforward and safe route for
the average South African to
accumulate long-term wealth,
as it’s a relatively simple
industry to break into and
understand.
July 2014 SA Real Estate Investor

21