SA Property Investor
Feature Article of this week This week's Property Article Links Upcoming Seminars Property of the Week Investment of the Month Book of the Week Key Property Indicators
Issue no: 71
13 January '06
 Feature Article Go to the top of the newsletter
Commercial property 'booming'
We start the year with an interesting article on Commercial property. We thought that this would be a bit of a change after being bombarded with news about the residential property market at the end of last year. John Loos of FNB gives an interesting overview on the commercial side of the property market. Enjoy!
Commercial property 'booming' - Finance24, 9 January 2006
There are strong signs indicating a prolonged period of high fixed investment in South African commercial property in the coming years, according to FNB property economist John Loos.

Real non-residential property fixed investment growth is forecast to accelerate to 9% in 2006 and grow positively through 2010 after recording an estimated 7% real growth in 2005, the longest such investment upswing in decades.

Writing in a research report released on Monday, Loos said he was "really upbeat" about prospects for the commercial side of the local property market.

Although lagging behind the residential property market, this was to be expected given that households' decision-making and planning processes were far faster than their commercial counterparts, whose projects were much larger
Read more...
Marissa Knibbs
Newsletter Co-ordinator, SA Property Investor
 Upcoming Seminars Go to the top of the newsletter
Property Investing with Nothing Down - 4 Hour Seminar with Schalk Meintjes
-   Centurion:  21 January 2006 / 09:00 - 13:00 (Saturday)
-   Cape Town:  28 January 2006 / 09:00 - 13:00 (Saturday)
-   Port Elizabeth:  04 February 2006 / 09:00 - 13:00 (Saturday)
-   Durban:  11 February 2006 / 09:00 - 13:00 (Saturday)
 Weekly E-News Go to the top of the newsletter
MARKET TRENDS:
February rate cut hopes - Moneyweb, 13 January 2006
An increase in South African bond prices took the yield on South African bonds to an all-time low, lending more credence to arguments for a February rate cut.
SA house price growth down - Finance24, 11 January 2006
South Africa recorded average house price growth of 21.9% in 2005, down from the rapid 32.2% average growth seen in 2004, according to the latest Absa House Price Index, released on Wednesday.
GENERAL PROPERTY NEWS:
Just look whose buying farms these days - Property24, 12 January 2006
Commercial farmers are being blamed by politicians and the landless alike for supposedly inflating the prices of farms in an attempt to counter land reforms. They are also accused of being slow to participate in black economic empowerment in the agricultural sector. However, real estate agents have a different view.
Paramount on acquisition spree - Cape Business News, 11 January 2006
Cape-based property group Paramount is on another acquisition spree - this time acquiring a mixed bag of properties worth nearly R400m.
Body corporates face clampdown - Finance24, 10 January 2006
A new protection mechanism has recently come into effect that has far-reaching consequences for sectional title owners.
Moving home? Don't forget accounts - I-africa.com, 6 January 2006
We all know that moving home can be an expensive and time-consuming exercise. In the rush to get your life in order you may forget some very important people on your list - your creditors.
Foreign investment in SA properties booming - Propery24, 05 January 2006
The New Year is upon us and with the peak tourist season comes an influx of foreign visitors eager to experience the legendary beauty of Southern Africa. There are many immigrants with stories to tell of how they once visited South Africa and instantly fell in love with the place, causing them to pack up, buy a South African home and move here for good.
RESIDENTIAL PROPERTY NEWS:
Experts predict 12% surge in property prices - Moneyweb, 10 January 2006
Homeowners can look forward to double-digit growth in house values in 2006, despite the slowdown from high growth rates of the past few years, says John Loos, FNB's new property economist. Loos moved over from Absa this month.
Bumper season for sellers - Moneyweb, 4 January 2006
The Cape Town residential property market enjoyed a roaring December, say estate agents - and there are still tantalising pockets of opportunity to make healthy returns in 2006.
Will 2006 be another bumper property year? - Moneyweb, 22 December 2005
It has been another good year for the residential property market. House prices, as measured by the Absa House Price Index, are still growing by more than 10% - way above inflation.
Mixed views on what next year holds for SA - Business Day, 14 December 2005
Property commentators have mixed views on what is in store for SA’s residential property market next year.
INDUSTRIAL PROPERTY NEWS:
Dié huurgeld in Kaap 'te laag' - Sake Burger, 21 December 2005
Hoewel huurgeld vir nywerheidseiendom in Kaapstad en omgewing styg, is dit te laag om nuwe ontwikkelings lewensvatbaar te maak, sê Orin Varney, Ou Mutual Eiendomme se Wes-Kaapse verhuringsbestuurder.
LISTED PROPERTY NEWS:
Property unit trusts a boon for investors - Moneyweb, 20 December 2005
During the third quarter of 2005, listed property fund prices soared further owing to marginally declining income yields and solid income stream growth, says the latest Rode Report.
Just keep on buying, folks - Financial Mail, 15 December 2005
Investors in property have had another wonderful year on the listed sector, with a total return of about 33%.
SPECIFIC AREAS:
Dearth of industrial land 'a hindrance to city's growth' - eProp, 10 January 2006
A serious lack of available industrial property in Port Elizabeth could hinder expected boom times in the commercial property sector.
Rental market still in the doldrums - Moneyweb, 9 January 2006
Sandton CBD's rental market is showing signs of bottoming out. Rents for two bedroom units fell from about R7 000/month in early 2003 to R4 000 in early 2005, says Anton de Leeuw, CEO of YDL Property Wealth Education.
State spending to boost Moot property market - Property24, 29 December 2005
The property market in the Moot area of Pretoria is to reap substantial benefits from the recent purchase of land in the area by the Department of Foreign Affairs for its new office development.
INTERNATIONAL PROPERTY NEWS:
UK 2005 house price growth smallest in 10 years - Rodneyhayter.com, 11 January 2006
UK house prices increased by 1% in December and by 2,1% in the final quarter of 2005, confirming a modest recovery in prices during the latter part of last year, according to a January 09 Halifax House Price Index.
Estate agents urged to 'sell SA first' - Business Day, 14 December 2005
Bulgaria, which has an antiquated deeds system and an unsophisticated property market, is attracting far more English and Irish property investors than SA, which has a first-world deeds system and property market.
 Property of the Week Go to the top of the newsletter
3 Most Popular Investment Opportunities
At the start of this new year, we thought it would be a great idea to choose the 3 most popular investment opportunities of last year. If you as investor missed out on any of these opportunities, here is a summary of each of the 3 to refresh your memory:
Farrelli Park:

This is a unique opportunity, for you as investor, to get into the vibrant commercial market and further diversify your portfolio.

These units are conveniently located near Century City and Grand West, and some of the units have views overlooking our mountains. The unique multiple zoning of the development allows you to buy / finance as a residential or commercial sectional title unit. Multiple zoning enables you to adapt to a dynamic changing property demand by letting units for residential or commercial purposes - work downstairs, live upstairs!

Very Competitive and Low Price: R 399 000 - R559 000 (VAT Exclusive - no transfer duty)
Yields after levy and administration ± 7% - 9%
37% pre sold before official launch
24 hour security park, fully walled, 3 manned gates
Ground Floor - Business units or retail outlets; 1 st Floor - Office or Residential Units; 2nd Floor - Office or Residential Units
1st Phase to commence December 2005 with expected completion in May 2006
The option of a rental guarantee for 3 to 6 months to smooth the income stream during the initial period of ownership.
Be first to invest into multi purpose sectional title units in Maitland, before prices escalate.

Click here for more information:

Student Villages - Residential Income:

Additional News: Please beware that this wonderful opportunity is even better!!
The 10 year lease agreement has secured a 5% increase per annum. Capital growth should at least be an excess of inflation. These all added up makes for a rather special investment opportunity.

Only R12 million still available!!! Be sure not to miss out on this incredible residential opportunity!

The property is the largest residential housing unit of the Tshwane University of Technology (TUT), measuring approximately 25744m2. A true landmark within the area. The Heights Residence consists of 16 Blocks three stories high and 860 beds, which are fully occupied yearly. As a result of its great popularity as a student haven, the "Heights Residence" boasts with an occupation waiting list of 115% all year round.

It is situated on the main campus of Tshwane University of Technology in an area known as Phillip Nel Park. This area is baptized as "The Education Mecca" for all operations related working opportunites.

Due to the fact that the university subsidizes part of their rent, the students are paying less than half of the going rate for accommodation in the area. This in turn offers a great long term option for investors should the university not renew its income thereby increasing return considerably. TUT has the largest residence capacity of all higher education institutions in South Africa.

There are currently 100 units available with a unit price of R1 000 which means that your total investment will be R100 000. The percentage income on the initial investment is 10.5% per annum and the average capital growth for the first year, 5.12%

For more information and to secure your investment, click here

West Coast Jewel:

Do you remember the plots for sale in the security village? We have spoken to the developers and they have told us that there are a few more plots up for sale. As this is such a good deal, we are bringing it to you again as our Property of the Week.

Here is the description again:

An established village on a private peninsula with three beaches within 150km from Cape Town with gholf course, wellness center, small boat harbor and shopping centre.

A small number of plots are up for re-sale and offered at the same price as a year ago. The offer is directly from the developer at R449,000 per plot, saving on transfer and bond costs. Only R10, 000 secures your purchase. Making a quick profit or keeping for pleasure or investment - this opportunity could satisfy all of these requirements.

For more information and to show your interest click here
Many Thanks
Oscar de Waal
Registered Financial Services Provider (FSB 4977) Member South African Association of Property Syndicators (SAAPS) Associate Member of the FPI (Financial Planners Institute) M.Sc. (UOFS)
 Upcoming Events Go to the top of the newsletter
Thai Real Estate Business School: The 10th International Study Visits: Real Estate in Bangkok - Pattaya
Bangkok - Pattaya: 14 - 15 January 2006
http://www.thaiappraisal.org/
Thai Real Estate Business School: International Conference - Becoming an Expert in Trans-national Real Estate Investment
Ambassador Hotel, Bangkok, Thailand: 16 - 18 January 2006
http://www.thaiappraisal.org/
Thai Real Estate Business School: Intensive Course - International Real Estate Finance
Ambassador Hotel, Bangkok, Thailand: 19 - 20 January 2006
http://www.thaiappraisal.org/
The IPD European Property Investment Conference 2006
The Hotel Ritz Four Seasons, Lisbon, Portugal: 10 - 12 May 2006,
http://www.ipdindex.co.uk/
If you want our readers to know about your upcoming property-related event, please e-mail Marissa the details
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Editor's Note
Welcome to our first newsletter of 2006! I trust that you have rested well over the festive season and are ready for the year ahead!

Our focus article for this week is on commercial property. Experts are excited about the possibilities for the commercial side of the property market.

The ABSA House Price Index was released this week. According to the December Index data, nominal house price growth declined to 14.7% y/y in December from 15.7% y/y in November and down sharply from 30.8% y/y in January. Please click here to read the full report.

Have a great weekend and remember to refer your friends to our newsletter!

All the best
Rian Maartens
Opinion Poll
After reading our feature article, do you as an investor believe that 2006 will be an excellent year for property in general?

Yes
No
In our last newsletter, we asked our readers if they believe that the festive season has a good influence on the property market. Click here to see the results
Book of the Week
Our choice of the top 3 books of 2005:
The ABC's of Real Estate Investing
The ABC's of Real Estate Investing - Ken McElroy
Ken McElroy
Buy this book from:
Buy from Amazon.com
Buy form Kalahari.net
Real Estate Riches: How to Become Rich Using Your Banker's Money
Real Estate Riches: How to Become Rich Using Your Banker's Money - Dolf de Roos
Dolf de Roos
Buy this book from:
Buy from Amazon.com
Buy form Kalahari.net
The Insider's Guide to Making Money in Real Estate: Smart Steps to Building Your Wealth Through Property
The Insider's Guide to Making Money in Real Estate: Smart Steps to Building Your Wealth Through Property - Dolf de Roos, Diane Kennedy
Dolf de Roos, Diane Kennedy
Buy this book from:
Buy from Amazon.com
Buy form Kalahari.net
Our Goal
Our goal is to serve all South African property investors; locally and abroad, residential and commercial, direct and indirect, listed and unlisted, large and small, off-plan and existing, single owners, partnerships and syndications. There are obviously many ways to own property but to make the right choice requires intelligent property investing comparisons. Being well-informed is the first step, so our goal is to deliver all the best property information.
Advertise Here!
Did you know?
The Cathedral of Notre Dame in Amiens, built in the Middle Ages, covers 8,500 square yards and took 137 years to complete. When it was completed, the entire population of the city, around 10,000, could attend the same service.
Source: Interesting facts website
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Joke of the week
The dance we were going to was formal. Elegantly dressed, I headed downstairs, picking up in passing a wastebasket that needed to be emptied and a mop that had to be put away. The door bell rang. I answered it, still clutching mop and wastebasket. The young man gave me a startled look. "My wife and I were interested in buying a home in this neighbourhood," he began, "but if this is the way everyone dresses to clean house, I'm not sure we want to live here."
Real Estate Humour
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Previous Newsletters
If you missed a previous issue of this newsletter you can still read it, click here to view our archive of newsletters or here to view last week's newsletter.
 Key Property Indicators Go to the top of the newsletter
 
Current
Last
Week
Last
Month
Last
Year
Prime interest rate
10.50%
10.50%
10.50%
11.00%
ABSA House Price Index (NEW)
(nominal year-on-year growth)
14.7%
(Dec '05)
15.7%
(Nov '05)
16.7%
(Oct '05)
32.7%
(Dec '04)
IPD SA Property Index -
Total Return: All Property
23.4%
(2004)
23.4%
(2004)
23.4%
(2004)
15.3%
(2003)
FNB Residential Property
Barometer

6.1
(3Q2005)
6.1
(3Q2005)
6.8
(2Q2005)
6.7
(3Q2004)
Property Loan Stock Index
874
-
869
    0.6%
844
    3.6%
602
    45.2%
Real Estate Index
585
-
589
    0.7%
579
    1.0%
490
    19.4%
Property Index
252
-
251
    0.4%
244
    3.3%
179
    40.8%
Property Unit Trust Index
336
-
334
    0.6%
324
    3.7%
251
    33.9%
Standard Bank Property Report
Absa Residential Building Statistics
Catalyst Securities – Listed Property
Mortgage Advances - September
 Quote of the Week Go to the top of the newsletter
"If you have a task to perform and are vitally interested in it, excited and challenged by it, then you will exert maximum energy. But in the excitement, the pain of fatigue dissipates, and the exuberance of what you hope to achieve overcomes the weariness."
Jimmy Carter

Executive Editor
Investment
Opportunities
Co-ordinator &
Subscription Enquiries
Website & Technical
Enquiries
Rian Maartens
Oscar de Waal
Marissa Knibbs
Elsa Haasbroek
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DISCLAIMER:
SA Property Investor makes no representation and gives no warranty as to the accuracy of the information in this document and accepts no liability for any errors, misprints or omissions herein (whether negligent or otherwise). SA Property Investor shall not be liable for any loss or damage whatsoever arising as a result of any person acting or refraining from acting or placing reliance on any information contained herein. All information in this newsletter been obtained as is and is provided as general information only. No reader should rely solely on the information contained in this publication, as it does not purport to be comprehensive or to render specific advice. As such it is not intended for use as a source of investment advice. All readers are advised to retain competent counsel from legal, accounting and investment advisers to determine their own specific investment needs.
SA Property Investor
SA Property Investor