Property News - January 2009
Welcome to our property investment newsletter, the aim of which is to keep you up to date and informed as to the most recent property trends.
Following on from last months launch of our two new residential developments in the Durban CBD. We still have a number of newly renovated bachelor flats from only R240K. These units are all situated in the Urban Development Zone (UDZ) so investors can benefit from the 30% tax rebate that SARS is currently offering.
For further information on Durban UDZ properties please contact: Bradley Hancock on +27 72 0196192 or via email [email protected]
We have also, after a recent inspection trip to Dubai, decided to team up with Dubai based British property developer – Hamstead & Mayfair, so as to be able to offer you a selection of Dubai properties and investment opportunities. In this regard we would like to draw your attention to Article 6 - “Dubai Property – The crown jewel of the United Arab Emirates”
For further information on Dubai properties please contact: Inaam Ismail on +27 82 5115198 or via email [email protected]
“2008 has been one of the most challenging years in modern global economic history”, commented Alliance Group Chief Executive, Rael Levitt in his year end review, “but if any South Africans are under the illusion that times will quickly get better in 2009, they are not taking cognisance of global events”.
This cut is unlikely to have any immediate effect on the housing market, although it may tempt some buyers to make a decision. Prices will continue to fall into 2009, and we believe they have a further 15% to fall.
Current economic conditions and expectations for the next 12 months on the global as well as the local front do not suggest a turnaround and significant recovery in the housing market in the near future.
The additional £150m announced for the construction of 2,000 new social rented houses in the pre-budget report is welcome, as is the £100m announced for regeneration schemes, but these are small amounts given the scale of the current problem.
In the wake of higher interest rates, many owners, especially those who bought second and more properties to let, are experiencing difficulty maintaining their bond instalments. The situation has deteriorated to such a degree that some owners, unable to sell at the price they want by private treaty, try selling by public auction …
Over the past six years of unprecedented growth, all industry sectors have at least doubled in size. The strongest growth has been shown by those related to property development. Construction has grown by an average of 32.7% since 2001 and in 2006 accounted for 12.7% of total GDP up from 7.2% in 2001. Similarly, Real Estate businesses have recorded an average growth of 25% per annum.