Residential property market update - buyer's market still here for a while
Category Market Update
Although the latest data points to improvements, the overall take-out is that the favourable buyer's conditions are here to stay for the time being. The latest FNB Property Barometer notes the bulk of improvement in the mid-market range of R700k-R1.8m and moderately to the R3.5m range. The positive mortgage lending climate has been a catalyst for these improvements. Above that though, the market remains highly selective.
While national house prices edged up to 3.8% (from 3.7% in August), Cape Town prices recorded a paltry 0.5% growth for the first half of the year, well below Durban (5.2%), Johannesburg East Rand (4.3%), Johannesburg (2.6%) and Pretoria (1.5%).
The time on the market for Cape Town stands at around 13.5 weeks, still somewhat longer than the healthy market average of 12 weeks. Although slower than Pretoria (11.4 weeks) and Port Elizabeth (13.1), it is still faster than Johannesburg (14.4) and Durban 16.1 weeks).
Other developments include the recent signing into law of the Property Practitioner's Act which replaces the 43-year old Estate Agency Affairs Act. The Act brings considerable reform of the industry and implications for sellers and landlords. It broadens the scope beyond traditional estate agents to cover commercial property brokers, bond originators, home inspectors, homeowners' associations, companies selling timeshare and fractional title, property developers and property managers.
It also significantly tightens requirements around Fidelity Fund Certificates and the conditions to earn a commission or brokerage fee. An important aspect for sellers and landlords, is the new requirement that a comprehensive property defects disclosure document must be part of all mandates and sale and lease agreements.
The current Estate Agencies Affairs Board will be replaced by a new governing body, known as the Board of Authority. Additionally, a new Property Practitioners Ombud whose decisions will be equivalent to that of a Magistrate will be established to consider and decide on complaints by the public against property practitioners. Rental disputes between tenants and landlords must, however, still need to be taken to the Rental Tribunal.
As we head towards the summer and holiday season, just a reminder to remain vigilant as property criminals see this as a time when people tend to lower their guard and properties are unoccupied for periods of time. House robberies are generally considered by criminals as lucrative and the chances of being caught quite slim.
Safeguard your property with a good security guard. This will also be a selling point and will bring down your premiums. Do regular checks to keep the system fully functional. With load shedding once again affecting our daily lives and property, it is advisable to look into installing a back-up battery system (if you don't already have that) and consider lighting up dark or dense areas in your garden with solar lights.
Mix up your habits, especially regular activities such as leaving for the gym. Always create the impression that someone is home such as leaving lights on at night for example. Only put your bin out on the morning of collection as taking it out the night before or leaving it out too long can create cover for criminals.
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Author: Gina Meintjes
