Real Estate Investor Magazine South Africa September 2013 | Page 23

REI Residential

Township House Price Growth Ahead of Suburbs
Areas formerly classified as “Black Areas” under Apartheid Era classifications have outperformed the former White “suburbs” in terms of house price growth for much of the period since 2006, playing catch up off a very low price base. In the 2nd quarter of 2013, the FNB Former Black Township House Price Index for Major Metro regions rose by 8.4% year-on-year. This was mildly higher than the 6.3% recorded for the entire market in the six major metros (Ethekwini, Cape Town, Nelson Mandela Bay, Ekurhuleni, Joburg and Tshwane). Townships markets represent the most affordable part of the residential market, with an estimated average transaction price of R281 953 as at the second quarter, and have shown to be a bit more cyclical than the overall metro residential market.

Keeping Up Maintenance
In recent months there has been a marked increase in the number of people buying into multiple unit developments, gated estates and sectional title schemes – not for their own use but as an investment. While this is a welcome trend, it has to be accepted that it can lead to problems, says Bill Rawson, Chairman of the Rawson Property Group. The main problem, he says, is that certain investors, while enjoying the current scenario in which rents are rising fast year-by-year, tend to be very slack about ensuring that their properties – as well as those of their neighbours and communa l g rounds – a re properly maintained. “Today’s buy-to-let investor is inclined to see his investment as being in much the same category as a bond or share purchase. He sees no need to be closely involved with it.”

Inter-Provincial Repeat Home Buyer Migration Trends
According to FNB, household mobility appears to be rising over the long term, with a greater portion of households relocating to more far off destinations, predominantly for work purposes. FNB’s research also confirms the Western Cape’s apparent competitive advantage, given the lowest W&6V?FvR?b&WVB'W?W'2?Vf??rF?R&?f??6R?2vV??2'?f"F?R7G&??vW7B?WB??v&B?w&F???&FR?b&WVB'W?W'2g&???F?W"&?f??6W2??B?2??B7W'&?6??r2F?R&?f??6^( ?2V6?????2F?R6V6??B?&vW7BgFW"vWFV?r??B?6?&?7G2F?R6V6??B??v?W7Bw&?wF?&FR?6?v?F?&V???BF?B?bvWFV?r?6RF?v?( ?26??&??F????bv??BV6????2??'GV??G????rv?F?V?G??fW7G??RV'2F?&RF?Rv?????r&V6?R??GG&7F??r&?F?vV?F??B6????2F?F?R&?f??6R??&V?F?fV?'V?F?BV?F?F?W2?f?V&?R??W@??&???&w6???6??&???&w6??&?W'G?( ?2'V?R?bF?V?"??&V?WfRF?B??B?W72F??RR?BWF?R?bF?R&V?F?2V6????F?6??V?B&R6WB6?FRf?"???FV??6RW'?6W2?( ??G&??v?6?WGB?4T??$R???( ?( ?Bv2??BF?B???rv?F?BFW6?&&?R???R??v??B??6F??????fR6B??F?R?&?WBf?"???F?2???vWfW"?F?B6VV?2F??fR6VV?GW&?&?V?Bv?F????6V??W'2&V6V?f??r?ffW'2???V6?6??'FW"F??Rg&?R?( ??6?VV?6VVfb?6??&???6VVfb( ?F?W&R?2??F&?R6??gB??'W?W"FV??w&??72??F?R??&Rff?&F&?R?B?FF?R?6?727V'W&'2??F?R????WG&???F?&V2???6??R??7F?6W2???&RF????b?b??'W?W'2&R??rg&??F?R&?6??FF?R6?72FV??w&??2w&?W?( ??'&??v????6???4T??t$54( ?vR&R6??f?FV?BF?BF?Rw&VV?'V??F??r??fV?V?B??6?WF?g&?6v???6??F??VRF??2Wv&BG&?V7F?'??BF?BvRv?????7&V6??v?6VRw&VV?'V??F??r&7F?6W2&V6???rF?R??&??( ??vW&?B?V?76?W"?6??VbW?V7WF?fR?ff?6W"?'&?v?VB&?W'F?W2( ?vR6VRF?R&W6?FV?F???&?WB2????'F?B?WrfV?VRf?"w&?wF???B?B?ffW'2w&VBF?fW'6?f?6F???g&??6???W&6??&?W'G??( ??wwr?&V??r?6?????6WFV?&W"#24&V?W7FFR??fW7F? ??#??