Residential property transactions rates on the rise

 

The overall value of sales in the South African housing market is steadily increasing, from 2014 to 2015 an 8.3 increase in the value of residential property transactions was recorded.

Despite the gross domestic growth (GDP) not gaining momentum and remaining low. New vehicle sales are plunging while an increase upward interest rate cycle is evident.

About 50% of residential properties are in Gauteng and the Western Cape account for at least two thirds of the total residential market value.

The high value suburbs that experienced a strong capital growth last year include Sandton and Parktown in Johannesburg. La Lucia and Mount Edgecombe in eThekwini in KwaZulu-Natal, Green Point and Rondebosch in Cape Town.

Despite asset buying consumers decreasing, property investing is still a priority for most South Africans. The analytics director of Light stone, a provider of in depth information, valuations and market intelligence in the South African property sector noted this factor while addressing the latest gathering in the Overview of the SA Property Industry conference. The conference took place at Val del Estate outside Paarl in the Western Cape.

Gated Estate vs. Property Tycoon Court Case Results

A property kingpin from Mount Edgecombe housing estate in Durban recently lost his legal contest to overthrow what he refers to as “draconian rules” that involve speed limits, access for domestic workers and contractors.

The property tycoon who is a resident at the estate argued and stated that the roads within the estate were public property governed by the National Road Traffic Act. He said that the general speed limit would be 60km/h, not 40km/h as it is on the estate.

However the judge refused this submission, stating that the rules were private/internal and that there were placed for ensuring a lower speed limit within the gated community, taking into consideration, animals, pedestrians and children.

Rules for domestic workers and contractors similarly were prescribed to ensure, orderly ingress and egress of a number of people that work at the homes in the estate.

The judge noted, “Rules are there to regulate conduct between neighbours and as necessity, must be restrictive to take into account the cumulative rights of the use and enjoyment of the estate by all its residents.”

He added, “Rules might irk one’s individual sense of propriety and fairness because of their restrictive and regimented nature, they cannot be said to be contrary to public policy.”

The judgment embedded the rights for homeowner associations that are on gated estates to enforce laws for that promote good community living.

With regards to property investors challenge in regards to the restriction for the use of accredited contractors approved by the association, the judge said it was not unreasonable to ensure that those doing the work were competent. “I see no reason why there cannot be a list of accredited service providers. The rules do not provide for a closed list and the association says when an owner wishes to use a contractor not already on the list, he can apply and as long as the contractor is suitable, accreditation will be granted.”

A home owners association comment to the matter; “This will clearly set the precedent for any future court cases within South African courts. Home owners associations do have power over residents who think they are on top of the law.”

Changes to your Sectional Title Unit

It appears as though we have fast tracked through January and are now leaping into February.  Many of us are quite righty contemplating how to improve in every aspect: whether personally or within our careers. Having said this, there are of course many question marks regarding alterations or enhancements to homes, including enlargement of space.  Allow us to clear up the gray areas for you. Continue reading “Changes to your Sectional Title Unit”

2014 Property Tips

With the property market looking healthy in 2014, we are excited to wish you all a prosperous and wonderful New Year.

What better way to kick off your new year than starting afresh in a new home. Purchasing a new home is not merely a physical experience, but an intensely emotional and psychological journey that may extend beyond just you – to include your entire family. Hence, the latest in property news sees us kick off 2014 with some helpful hints that will empower you as the home buyer. Continue reading “2014 Property Tips”