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South Africa ranks 25th in Global Real Estate transparency
N ew research shows 75 % of global real estate investment takes place in highly transparent markets , with South Africa ranking 25th out of 109 markets covered — supported by its listed property sector . SA Commercial Prop News has learned some news that South Africa ’ s property market has once again been ranked as one of the most transparent in the world , according to JLL ’ s latest global real estate transparency index . The index reveals which countries provide the most favourable operating environments for investors , developers and corporate occupiers . Although SA has registered a noteworthy decline in overall score , the country remains Sub-Saharan Africa ’ s most transparent market , supported by its active listed property sector .
While tangible improvements in transparency are being made , Sub- Saharan Africa is still some distance from competing equally with its counterparts in the EMEA region and sizeable efforts are required to close the gap with other global regions . Craig Hean , Managing Director : Sub- Saharan Africa at JLL South Africa , comments , “ Sub-Saharan Africa continues to make advances in real estate transparency , but progress has been patchy with limited development in regulatory and legal reforms and enforcement .”
Impact of fewer foreigners on property market
Fewer foreign buyers are investing in homes in South Africa . While this has little noticeable impact domestically , it underlines the tough conditions confronting the property market .
FNB ’ s Estate Agent Survey , published earlier this month , estimated that 5.11 % of property buyers in the 1st and 2nd quarters of 2016 were foreigners . This was within an overall range of around 5 % recently .
It represented a decline off a recent high of 5.77 % in mid-2014 - and an even greater decline from the 7 % recorded in 2005 , a more prosperous time .
For South Africans , the influence of sales to foreign nationals is relatively small , and as the report notes , the trend appears to have flattened out .
Certainly , well-heeled foreign buyers seeking homes-away-fromhomes might be in a position to make attractive offers on top-of-the range neighbourhoods . We see some of this on the Atlantic seaboard for example .
The effect of this should not , however , be overstated .
Rand set for worst week since February as Gordhan doubts persist
6 SEPTEMBER 2016 SA Real Estate Investor www . reimag . co . za
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outh Africa ’ s rand headed for the biggest weekly drop since February while benchmark government debt slumped by the most this year on concern Finance Minster Pravin Gordhan ’ s job is on the line amid speculation of a rift between him and President Jacob Zuma .
Statements of support for the finance minister from Zuma and Deputy President Cyril Ramaphosa on Thursday failed to ease anxiety , with a survey of investors and other market participants by Rand Merchant Bank showing about half believe he will be removed . Opposition parties and some independent analysts have accused Zuma , 74 , of trying to gain greater control of the National Treasury to further his economic interests before his second and final presidential term ends in 2019 . He has denied the allegation .
The rand gained for the first day this week on Friday , strengthening 0.2 % to 0.3 % at 14.1852 per dollar by 9:19am in Johannesburg as the greenback slipped before Federal Reserve chair Janet Yellen ’ s speech at Jackson Hole . That pared the week ’ s decline to 4.7 %, the most since the five days ending February 26 and the biggest decline among more than 150 global currencies tracked by Bloomberg .