Airports let property markets take off

Posted: Sep 28, 2010

The development of airport infrastructure around SA is fuelling nearby commercial and residential property markets and while there are many who decry the effects of noise pollution, the impetus seems unstoppable.

So says Gerhard Kotzé, CEO of the ERA South Africa property group, who adds that airports and their expansion still generate mixed reactions, but there’s little doubt that the economies of surrounding areas benefit.

“South Africa, under the impetus of the Soccer World Cup and other influences, has extensively upgraded its airport infrastructure recently in terms of both international and regional feeder services.

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Urban Chic Hotel Prepares to welcome the world to SA for 2010

Posted: May 28, 2010

After months of preparation, the Urban Chic Boutique Hotel is actively preparing to welcome soccer fans from around the world to what we are sure is going to be one of the best World Cups ever. Hotel management and staff are excitedly putting together the last few extra touches to ensure our guests have the best service possible and are able to experience the best our beautiful city has to offer. GO BAFANA and of course the 2006 champs THE AZZURI!

Is the economy coming or going?

Posted: June 01, 2010 (External Source - Pam Golding)

The South African economy seems to be on a sustainable recovery path from the recession. Interest rates are at their lowest for decades and inflation is under control. According to Stats SA, April inflation dropped to 4,8% year on year from 5,1% y/y in March. Monthly consumer prices slowed to 0,2% in April from 0,8% in March.

However, we still have to feel the effects of the upcoming administered price increases such as Electricity tariffs, municipal rates and charges and fuel prices. But just as worrying is the current flood of wage demands and awards, most considerably higher than inflation.

They amount to economic suicide.

Inflation is expected to turn upwards from the final quarter of this year, but this is unlikely to influence interest rate decisions by the SA Reserve Bank's monetary policy committee meeting on July 22.

We could nevertheless benefit from lower interest rates ( they would certainly help improve the residential property market further), but these are being kept high by the excessive labour demands and by excessive tax increases. Stricter public sector governance and more realistic demands from labour movements would help. Some analysts believe that prime rate could have been lowered to 7%-8% instead of the 10% we seem stuck with.

Now we are facing Euro-contagion, causing markets to slump and once again raising fears of yet another global financial crisis... On the other hand, we might as well just sit tight and let it blow over. After all, we are the richest endowed non-energy commodity producer in the world. We should remember this more often.

PGP Western Cape sees upswing in sales volumes during final quarter

Posted: June 01, 2010 (External Source - Pam Golding)

The final quarter of the financial year ending 28 February 2010 saw a distinct improvement in sentiment in the Western Cape property market.

OVERVIEW
That's according to Pam Golding Properties' MD for the Western Cape metro region, Laurier Wener, who says her region recorded higher levels of buyer activity and increased sales volumes, compared to the preceding quarters. Significantly, the trend occurred across all price bands and in all the metropolitan areas of Cape Town.

Sales Figures
PGP's sales in the Western Cape metro region totalled R717 million for the quarter, with R323 million sold in February alone - a figure last achieved in August 2007.

2009 Comparisons
"Compared to the same period last year (2009), these figures showed a 47% increase in total sales value, and a 17% increase in unit sales," says Wener. "Of the total number of units sold in this quarter, 11% were priced over R5 million, with the highest individual sale being R40 million."

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