The rental market is currently in a major slump and there are no signs of any quick turnaround in the near future.
So says Peter Gilmour, chairman of RE/MAX of Southern Africa, who adds that “there are a number of contributing factors that, when viewed together, paint a pretty gloomy picture for the property rental market going forward”.
...
Gilmour notes that another blow to buy-to-let investors is the fact that come August this year, experts are predicting a flood of rental stock to hit the market. “One of the legacies left from the days of the property boom is an oversupply of buy-to-let stock. However, many believe that this is going to worsen in the short-term as many buy-to-let owners cancelled leases with long-term tenants in the hope of cashing in during the World Cup by earning short-term rentals from high-paying international football fans. However, come the end of this event, many landlords are going to be left holding the can so to speak, when they return their properties to the already over-supplied sector.”
...
John Loos, property economist at FNB, says the buy-to-let market will remain flat for the next 12 months. “I am expecting the home buying market as a whole to start slowing in the second half of 2010, with a lack of further interest rate stimulus starting to take its toll.
****
Really not much more to say, is there? Roll on August, and let the carnage begin.
Having semigrated from Joburg 2 years ago, I have recently terminated my lease of an upmarket house in Newlands-bit the bullet and bought my own house.
The landlord has been inundated with potential tenants, most of whom are from out of town or foreigners.
The seller of the property I bought has seen a 6 fold return on the property since he acquired it new in 1999.
Dear Bubble God ... Please forgive Anon 1 for what he has just said. I know it angers you so much when someone pushes stats pre-2005, since it was the biggest real estate boom in the world, and if you bought a trailer in Poffadder you still made money. I know this person didn't mean it, and feels so sorry for what they have done. Forgiveness shows true character. Amen
============================
On a side note all, if you have not seen this before, here is a very useful link I picked up off realestateweb (which is fast becoming a troll hangout). www.propertytrends.co.za It's a bit of a pain to get what you need and doesn't have the most up to date info. Yet it tells you trends per suburb such as what is the average selling price, and how much it has increased / deacreased over the last 20 odd years. Frightening stuff. For example I searched a former colleagues house in TableView who bought in '97 for R550 000, in 2005 it valued at R3.5 mill. It also tells you the history of the erf, when and who it was sold to, and for how much. It even tells you what it was bonded for.
8 comments:
This on Fin24 today. Selected highlights:
The rental market is currently in a major slump and there are no signs of any quick turnaround in the near future.
So says Peter Gilmour, chairman of RE/MAX of Southern Africa, who adds that “there are a number of contributing factors that, when viewed together, paint a pretty gloomy picture for the property rental market going forward”.
...
Gilmour notes that another blow to buy-to-let investors is the fact that come August this year, experts are predicting a flood of rental stock to hit the market. “One of the legacies left from the days of the property boom is an oversupply of buy-to-let stock. However, many believe that this is going to worsen in the short-term as many buy-to-let owners cancelled leases with long-term tenants in the hope of cashing in during the World Cup by earning short-term rentals from high-paying international football fans. However, come the end of this event, many landlords are going to be left holding the can so to speak, when they return their properties to the already over-supplied sector.”
...
John Loos, property economist at FNB, says the buy-to-let market will remain flat for the next 12 months. “I am expecting the home buying market as a whole to start slowing in the second half of 2010, with a lack of further interest rate stimulus starting to take its toll.
****
Really not much more to say, is there? Roll on August, and let the carnage begin.
Having semigrated from Joburg 2 years ago, I have recently terminated my lease of an upmarket house in Newlands-bit the bullet and bought my own house.
The landlord has been inundated with potential tenants, most of whom are from out of town or foreigners.
The seller of the property I bought has seen a 6 fold return on the property since he acquired it new in 1999.
Dear Bubble God ... Please forgive Anon 1 for what he has just said. I know it angers you so much when someone pushes stats pre-2005, since it was the biggest real estate boom in the world, and if you bought a trailer in Poffadder you still made money. I know this person didn't mean it, and feels so sorry for what they have done. Forgiveness shows true character. Amen
============================
On a side note all, if you have not seen this before, here is a very useful link I picked up off realestateweb (which is fast becoming a troll hangout). www.propertytrends.co.za It's a bit of a pain to get what you need and doesn't have the most up to date info. Yet it tells you trends per suburb such as what is the average selling price, and how much it has increased / deacreased over the last 20 odd years. Frightening stuff. For example I searched a former colleagues house in TableView who bought in '97 for R550 000, in 2005 it valued at R3.5 mill. It also tells you the history of the erf, when and who it was sold to, and for how much. It even tells you what it was bonded for.
Now how useful is that when putting in an offer?
Bear sez: Whhhaaaoooaaaarrrrrrroooo!
www.propertytrends.co.za
not very accurate - my house is valued at:
Estimated property value: R 5,550,000
Value Range: R 4,551,000 to R 6,771,000
I bought for R1,600,000 in 2009.
On further investigation - it seems for my area - the last update on properties was 2004... hence the bad estimates.
Everything pointing towards another leg DOWN.
http://www.marketoracle.co.uk/Article20685.html
http://noir.bloomberg.com/apps/news?pid=20601010&sid=a9InvgLtTBA0
CJ, what your latest numbers telling you about our market in SA?
Interesting read
http://www.iolproperty.co.za/roller/news/entry/funds_run_dry_in_kzn
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