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Executive Editor

SA Property Investor SA Property Investor
  Issue no: 379 4 May 2012  
 How rich will SA be in 2042? Go to the top of the newsletter
According to the economists, despite all the happenings through the years in South Africa, it is remarkable just how steady the national performance has been throughout. Read this very informative article and see if you agree.

How rich will SA be in 2042? -, 02 May 2012
What would South Africa's profile look like, say, on a 30-year view? Mostly stable (3.5 percent growth), very messy (noisy transition to who-knows-where), severe downside risks (from elite corruption and revolutionary young) with upward potential (the next productive generation coming up the ranks)?

For business and the economics profession, both premised on efficiency rules and result maximisation (best results in quickest time), engaging a ship adrift is a challenge. What may look like equilibrium between Big Government, Labour and Business can also be described as an active and enduring state of policy paralysis.

In other words, going nowhere in a hurry. If leadership is lacking in breaking this impasse from above, in getting us back to a better, faster supply side performance (infrastructure, labour market, education, state bureaucracy), yielding faster income growth and fairer spreading of opportunity, ultimately we may expect a crisis break from below, destroying the existing dispensation.

That is, after corrupt elites have first cleaned out and thoroughly thrashed the place. But what if it actually takes a lot of effort and time to break things down completely while a new upcoming generation actively works to transform us back to a functioning, more efficient, better balanced, sustainable configuration?

Is it a sign of fear and impatience (two very different sentiments) that drive the forced short-term eagerness to get back to even keel quickly? But what if the present set-up is as good as it is going to get for the time being, but with two crucial assumptions?

The outside world, given its outperformance (the East) and problems (the West), should keep creating supportive opportunities for an entity like us and the enormous African hinterland, as we have seen in recent years. Read more...

 Weekly E-News Go to the top of the newsletter

Govt's take on saving for retirement - Property24, 03 May 2012
SA’s retirement industry faces long reform as government considers plans to make retirement saving compulsory for all those employed, at least since 2004.

World economies steadily cruising - Moneyweb, 02 May 2012
Except for a disastrous 1Q2012 mining performance due to labour unrest and safety-related stoppages, as well as parts of agriculture suffering drought conditions in some growing areas, most other economic data paints a sustainable, if modest, pace of expansion into next year.

Liquidations decrease by 42.4 percent - Property24, 30 April 2012
The number of liquidations in South Africa for the first quarter of 2012 decreased by 42.4 percent compared with the first quarter of 2011.

Inflation: a double edged sword - eProp, 30 April 2012
According to Stats SA, producer price inflation - or the increase in factory gate prices - eased to 7.2 percent in March.


Not all auctioneers are corrupt - Moneyweb, 03 May 2012
Wrong perceptions have been created that the South African Institute of Auctioneers (SAIA) has, through its Chairman, targeted the insolvency industry and insolvency practitioners as the axis of evil within the auction industry.

Accredited Professional courses in sustainability - eProp, 03 May 2012
In response to evident need, coupled with industry demand, the Green Building Council of South Africa - the country’s leading green building authority – continues to offer exciting workshops in addition to their existing Accredited Professional training courses.

PODCAST: Update on Investec/Auction Alliance investigation - Moneyweb, 02 May 2012
It’s Wednesday May 2 2012 and in this Boardroom Talk special podcast, Stephen Koseff, chief executive of Investec, joins us from London. Stephen, last time we spoke about the Carte Blanche Auction Alliance insert, there was a lot of irritation from your side. You’ve gone a step further, you’ve appointed your own internal investigation; just tell us what process you followed please.

5 key projects for Dbn-Jhb corridor - Property24, 02 May 2012
Durban and Gauteng as well as the transport corridor between these two key logistics centres will be alive with work, as five key projects get under way in the next five years, the Minister of Transport Sibusiso Ndebele says.

Tsogo Sun Holdings' new branding - Property24, 30 April 2012
Tsogo Sun Holdings is consolidating its operating divisions under one name unifying its gaming and hotel interests under the Tsogo Sun brand.


Fast nominal growth, but house prices remain bleak - Business Day, 03 May 2012
While SA’s nominal house prices — excluding inflation — last month posted their fastest year-on-year growth since June 2010, in real terms they have dropped 12,6% since their 2008 peak, pointing to a struggling market.

Outstanding mortgage balances grows - Property24, 03 May 2012
The value of outstanding credit balances in the South African household sector increased by 6.8 percent year-on-year to R1 205 6 billion in March.

Landlords: Select tenants carefully - Property24, 03 May 2012
With South Africans feeling the effects of on-going near-recessionary economic conditions, landlords have to be extra careful in selecting tenants.

Myth: newly-built homes require no maintenance - Moneyweb, 02 May 2012
A common assumption made by consumers is that owners of newly-built properties do not need to conduct thorough maintenance on their homes.

Good housing improves occupants' lives - Property24, 02 May 2012
More than 50 percent of South African households report an improvement in access to education and employment from the property they live in.

Tips for property pre-winter checks - Property24, 30 April 2012
Every year around this time, winter can come as a shock to many homeowners, especially those who have moved into newly purchased homes.

SA must-buy cheap & designer homes - Property24, 26 April 2012
With the residential property market said to be a buyers’ market currently, homebuyers can choose from affordable to designer homes depending on price and location.


SA shoppers boost malls' retail sales - Property24, 03 May 2012
The South African retail property market is resilient despite cost pressures such as fuel, electricity and municipal rates which impact on consumers.

Property giants go green as the penny slowly drops - Moneyweb, 02 May 2012
2011 Moneyweb reported that only three out of nine property funds listed on the JSE (JSE:JSE) had elected to participate in a voluntary exercise to measure the carbon footprint of the JSE’s top 100.

Cape Town office vacancies still increasing - eProp, 02 May 2012
Certain nodes are cause for some concern; however with few new buildings coming on stream in the short term there is every possibility that vacancies may be reaching their peak overall.

Commercial property finance: Sharpen the axe - eProp, 28 April 2012
Whilst alternative funding mechanisms are rising to the fore, by having a good business plan in place and by following prudent steps, unlisted commercial property investors still have a fighting chance at traditional bank finance.


BEE consortium to buy 47% of shares - Property24, 03 May 2012
A Black Economic Empowerment (BEE) consortium will buy 47 percent of listed loan stock Dipula B-units in issue from Redefine Properties.

PODCAST: Redefine International's juicy dividend - Moneyweb, 30 April 2012
In this boardroom talk special podcast Stephen Oakenfull who is the chief operating officer of Redefine International joins us with results to the six months to the end of February.

Sea Kay half-year loss more than doubles - Moneyweb, 30 April 2012
Mass housing construction group Sea Kay Holdings' (JSE:SKY) headline loss for the six months ended December more than doubled compared to the loss for the previous comparable half-year, from R8.7 million to R18.3 million, which the group attributed to a lack of proper working capital.

Property funds eye capital markets - Property24, 30 April 2012
South African property funds looking to raise capital are turning to capital markets rather than banks, according to Global Credit Ratings (GCR).


Sotheby’s expand in key luxury markets - Property24, 03 May 2012
The Sotheby’s International Realty global network now encompasses more than 600 offices and almost 12 000 sales associates in 45 countries worldwide.

Speak up on corruption: Public Works - Property24, 02 May 2012
Public Works Minister Thembelani Nxesi has urged South African property professionals to speak up on corruption on dodgy property deals and leases.


Sought-after seaside holiday homes - Property24, 30 April 2012
Holidaymakers are reportedly checking out new property investments in prime seaside resorts in the Western Cape, Eastern Cape and KwaZulu-Natal.

Encouraging signs for Durban property investors - eProp, 27 April 2012
Despite current challenges, evidence of a paradigm shift among stakeholders, could drive long-term sustainability in SA's primary port city.


Real estate opportunities in Africa - Property24, 02 May 2012
Africa’s collective GDP in 2020 is expected to reach $2.6 trillion, with $1.4 trillion in consumer spending and 128 million African households that have discretionary income.

China’s cash-poor developers fuel Commercial Property deals - Bloomberg, 02 May 2012
Shanghai and Beijing, the two cities with Asia’s fastest-growing office rents, are set to lead a surge in commercial property transactions in China as more developers sell assets to raise cash for housing projects.

 Upcoming Events Go to the top of the newsletter
Reserve Bank Monetary Policy Committee Meetings for 2012
22 - 24 May 2012
17 - 19 July 2012
18 - 20 September 2012
20 - 22 November 2012

Rode 2012 Events
21 August 2012 - Rode Conference - Cape Town
27 August 2012 - Rode Conference - Johannesburg
28 August 2012 - Rode Eiendomsontbyt - Pretoria
31 August 2012 - Rode Breakfast - Durban

For more information, please contact Lynette Smit on 012 664 4159 or send an e-mail to
To advertise your upcoming property-related event, please e-mail Marissa the details.
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 Editor's Note

First National Bank’s (FNB’s) house price index for last month, released yesterday, shows its willingness to provide home loans and recent improvements in economic growth are helping the recovery. FNB’s figures show that house prices were up from a revised March growth rate of 8,1%, to 8,6% in nominal terms last month. Read the full report.

The value of outstanding credit balances in the South African household sector increased by 6.8 percent year-on-year to R1 205 6 billion in March. This figure was R1 197.8 billion in February, according to Absa Home Loans. Jacques du Toit, senior property analyst at Absa Home Loans explains that this resulted in a month-on-month increase of R7.8 billion or 0.7 percent in March compared with February. Read the full report.

The number of liquidations in South Africa for the first quarter of 2012 decreased by 42.4 percent compared with the first quarter of 2011. A year-on-year (y/y) decrease of 39.4 percent was recorded for March 2012. Read the full article in the Market Trends Section.

Until next week!

Blow the bank away with this professionally presented assets and liabilities / sources of income and monthly cash flow summary

Jason Lee Forum

 Opinion Poll
Do you think South Africa is on the right economic track or do you think we will follow the footsteps of many of the European countries?
Yes, we are on the right track
No, we will follow in the footsteps of the European countries
If you have a different view on the property market and the SA Economy, let us know.
 Last week's poll results

“Investors need to do their homework and thoroughly assess their needs and limitations as the actions taken today determine the lifestyle led in future". Do you:

 Book of the Week
Wealth Opportunities in Commercial Real Estate: Management, Financing, and Marketing of Investment Properties
Gary Grabel
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 What Happened This Week

1 May 2012

The Dow Jones Industrial Average reaches a four-year high due to strong manufacturing figures and company earnings.

U.S. stocks moved solidly higher Tuesday as investors welcomed a rise in U.S. manufacturing activity and a mixed batch of corporate earnings. The Dow Jones industrial average rose 66 points, or 0.5%, to close at 13,279.40, the highest since December 2007. The S&P 500 added 8 points, or 0.6%, and is just a handful of points shy of a 2012 high.

The day's gains were broad, with more than 70% of the Dow's 30 components ending in positive territory. Countering signs that the U.S. economic recovery may be slowing, investors were encouraged by a report that showed manufacturing activity grew last month at the fastest pace since June 2011.


Previous Newsletters
If you missed a previous issue of this newsletter you can still read it, click here to view last week's newsletter.
 Key Property Indicators Go to the top of the newsletter
Prime interest rate
ABSA House Price Index
(nominal year-on-year growth)
(Mar '12)
(Feb '12)
(Jan '12)
(Dec '11)
FNB Residential Property
FNB House Price Index (New)
(Apr '12)
(Mar '12)
(Feb '12)
(Jan '12)
Standard Bank Residential Property
(Jan '12)
(Dec '11)
(Nov '11)
(Oct '11)
(Avg. house price change)
(Jan '12)
(Dec '11)
(Nov '11)
IPD SA Property Index
Total Return: All Non Residential Property
Property Index
Capped Property Index
Property Unit Trust Index
Property Loan Stock Index
Real Estate Development & Services Index
Real Estate Investment Trust Index
 Quote of the Week Go to the top of the newsletter
"If you're in the luckiest 1% of humanity, you owe it to the rest of humanity to think about the other 99%." Warren Buffett
Executive Editor
Newsletter Editor
Website & Technical Enquiries
Rian Maartens
Marissa Knibbs
Martin Cronje
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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