“It also serves a large rural community and lately, there has been a strong inflow of contractors working on various infrastructure projects. At the moment, for instance, there are 55 schools under construction in surrounding areas area and the majority of the contractors working on these are from elsewhere and require local accommodation.”

However, she adds, Mthatha only has about 14 000 housing units, which can only satisfy only about 60% of current demand. “The town urgently needs at least 10 000 to 12 000 additional units but privately-owned development land is very scarce.

Most suitable land is either tribal or government land and developers shy away from the complex procedures required to rezone it.’

Consequently, the turnaround of properties is very slow because there are few suitable units available for owners to upgrade to, even when they are keen and financially able to do so. And the result of that is that new entrants to the market are now also having a tough time finding any homes for sale in their price range.

Thomson says prices have been rising quickly in response to the stock shortages and that buyers are now often willing to pay more than bank valuations if they have large enough cash reserves to make up the mortgage shortfall.

“So a home that would sell for about R1,4m in nearby East London, for instance, will easily sell for around R1,8m in Mthatha.”

The local entry level for free-standing homes is between R650 000 and R800 000 but, she says, such units are really very seldom available now, and the rental market is benefiting as locals who are currently “priced out of the market” are joining contractors in a scramble for short-term accommodation.

“A standard three-bedroom home with a single bathroom that would fetch R4000 a month in other centres can easily be let here for R6500 a month, while four-bedroom units in the popular Fort Gale area are achieving monthly rentals of between R8500 and R15 000.

“In addition, homeowners who have converted their outbuildings into cottages or built small flats on their properties are reaping the rewards now by letting them to contractors happy to pay as much as R5000 a month.”

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The hotspots of Auckland and Christchurch continue to produce great results. These two markets, however, must be classified as unique and in parallel to the remainder of the country as other regions slowly, steadily but surely recover off the back of historically, record lows.  Auctions continue to be the selling method of choice as buyers bid competitively to secure their property before any rate hikes stunt buying.  As reported by John Key in this week’s news conference ‘the Government are looking to find solutions to Auckland’s house price rises and land supply issues.’ Will we see any action soon?

Hayden Duncan

Harcourts Group, CEO

@HarcourtsNZ

Disclaimer:  All Harcourts MarketWatch figures are current to the end of the reported month and are compared to the same month ended for the previous year.  ‘Written Sales’ is defined by all sales brought to contract status, where ‘Settled Sales’ are the results of contracts completed at the close of the reported month.  Written Sales are a snapshot of the markets temperature while Settled Sales show what has happened in the previous month.

That’s the word from Richard Gray, CEO of Harcourts Real Estate SA, following the release of FNB’s April 2013 House Price Index, which reports “mildly positive growth” during the first quarter of 2013, with the likelihood of further value gains in the second quarter.

“As a group, we’re seeing a widespread uptick in terms of buyer interest. From being in the doldrums for the last few years, the market appears to be on the road to recovery, with house price growth in popular suburbs on track to exceed inflation in real terms for the first time since 2008,” he says.

However, he warns, the positive spinoffs of an improving market are likely to be experienced by only 10 percent of today’s sellers. “During the first quarter of 2013, FNB released statistics showing that 89 percent of properties sold for an average of 10 percent less than their original listing price. Furthermore, the average length of time properties spent on the market before being sold or withdrawn was 17 weeks and two days, and while there is no hard and fast rule about how long a home should take to sell, four months is excessive by any real estate professional’s standards.”

Given that the economy is stabilising and on the back of rising residential demand, Gray says the failure of such a large percentage of listings to achieve their asking prices or to sell within a reasonable time frame can only be ascribed to human error. “Feedback from our member offices as well as from within the industry at large is that sellers are making some serious mistakes which are chasing otherwise-willing and able buyers away.”

At the top of the list of mistakes is incorrect pricing, which Gray says is often accompanied by an instruction to the listing agent to put the property on the market at an inflated price and “see what happens”. “Sadly, nothing good usually happens,” he says. “Active buyers are watching the internet and the ‘papers for new releases and are quick to make contact with the listing agent to set up appointments to view when a new property comes on to the market. The most traffic passes through a new listing within the first two weeks, after which it tapers off dramatically.”

“Harsh as it sounds,” he points out, “the value of a property is not determined by what the seller paid for it, how much they need for their next purchase, or what they owe on the property. Buyers are extremely well educated about property values so the only person likely to be fooled by over-pricing is the seller who is living with unrealistic hopes and expectations.”

In the interests of establishing an objective and realistic selling price, Gray recommends the use of a report called a comparative market analysis (CMA). “When done by a professional estate agent, the CMA will contain a wealth of important data pertinent to the seller’s area, including properties currently for sale, sold properties and withdrawn listings comparable with their own home. It will also contain analytical information such as market trends and house price growth, highest, lowest and average selling prices as well as an evaluation of their property.”

The section containing properties currently for sale is only important from one perspective, he continues. “Sellers mustn’t be tempted to emulate the pricing here, since these homes haven’t sold and it may well be that their pricing is unrealistic and unachievable. What is relevant is that these properties will be their competition when their own home goes on the market, and depending on what their home offers and the asking price, these listings could lure buyers away from them or chase buyers into their arms.”

The data contained in the “sold” section, which comes from the South African Registrar of Deeds or Deeds Office, reflects recent sales in the area. It’s here, among the facts, that sellers are most likely to find a realistic, achievable selling price, says Gray.

Another common seller mistake is choosing an estate agent on the basis of friendship or because they gave the highest valuation. “The best agent for the job is someone who is qualified, experienced in the intricacies of the sales process, who knows the area well and who has a successful track record. Also important is that the agent has access to a wide marketing platform that includes the top online property sites and social media,” he avers. “With more than 80 percent of South African buyers shopping for homes on the internet today, it’s critical that homes are well presented online, with a host of quality interior and exterior photos. It’s going to cost about the same for a pro as a mediocre or even bad agent, so sellers need to stand firm on their right to work with the best in the industry.”

Sellers who don’t grant easy viewing or show house access are also in for disappointment. “No matter how good an agent is, they won’t be able to sell a property home if it’s seldom available to view,” cautions Gray. “Selling is hugely inconvenient, not least of all because one needs to be show house ready and available for viewing appointments at the drop of a hat. Serious sellers accept this and if they can’t get away from work to open up, they will entrust keys to the agent, a family member or friend. The same is true of show houses. No one likes them but they’re often more effective in attracting qualified buyers than newspaper adverts. The bottom line is that the more accessible a property is to buyers, the sooner it is likely to sell and the better the price it’s likely to achieve.”

Other self-limiting actions, according to Gray, include refusing to allow for sale boards outside the property, rejecting lower-than-asking price offers outright instead of counter-signing them, not responding quickly to offers and thereby allowing buyers to go cold, and listing with multiple agents, thinking that this will result in maximum exposure for the property. “When a property is uploaded on to an agent’s website, it is exposed to all the buyers. Sellers are often afraid of sole mandates, thinking that the involvement of multiple agents will expedite the sale of their property, yet the reverse is usually true because no one ends up taking responsibility for the marketing.

Open mandates tend to be used to sell other properties, and what’s more, they can lead to double commission claims. A sole mandate in the hands of a professional really is the best way to sell in this day and age – and the insertion of a performance rider in the contract will allow the seller to terminate the mandate should the agent fail to deliver on his commitment,” he advises.

That’s the assertion of Brian Dugmore, principal of Harcourts Anchor in Boksburg, who says the area bears no resemblance to the dry, tree-less expanse of the late 1800s. “Boksburg has literally turned into an oasis, not only with regard to its environmentally attractive setting and thriving industrial and retail sectors but also because of its wide range of property offerings in all price ranges” says Dugmore.

Less than 20km to the centre of Johannesburg and with its own thriving industrial zone in the form of Jet Park, it’s an easy commute to work by Gauteng standards, one of the reasons for a first quarter uptick in home buying activity. “The market is definitely better than last year, with the gap between house price growth and inflation starting to narrow,” he says. “As a result, we’re experiencing a shortage of good, well priced homes, which can sell within two to six weeks of coming on the market if correctly priced.”

And it’s not just the affordable suburbs that are in demand. Sunward Park and Beyers Park, both upmarket areas with quality homes, are also enjoying strong buyer interest, Beyers Park because of its proximity to OR Tambo International airport, various highways and the Woodlands Private School, and Sunward Park owing to its easy access to the N17 and other main arterials, he notes.

Executive level buyers can expect to pay upwards of R2, 2 million, which will secure a three or four bedroom home with two or three modern bathrooms, a great kitchen, lounge, dining room, family room, swimming pool, double garage and possibly even a Jacuzzi.

Units in secure villages in Sunward Park, Beyers Park and Bartlett, which offers an expansive range of upmarket cluster developments, are particularly sought-after at the moment, he continues, with people paying anything from R1.8 million up to R5 million. Among his office’s most recent sales in this price bracket was a luxurious 480m² cluster in a secure complex in nearby Bardene, which changed hands for R2.6 million. He also reports good interest in new listings such as a recently listed “status” property in Greenacres, Bartlett, priced at R2, 575 million. The “appealing, exquisitely finished cluster home with huge living areas” sits snugly in a secure, upmarket complex popular with high-end buyers, he says.

The new Oaks Golf Estate, a secure, Provencal-themed cluster development for which Harcourts Anchor has secured the selling rights, is also high on buyers’ favourite lists, according to Dugmore. The estate, which adjoins the ERPM Golf Course and will comprise 47 units on completion, is already 72% sold out, with only 13 stands left, he reports. Stand prices vary from R350 000 to R650 000 depending on their position, while complete building packages range from R1,5 million upwards. “The Oaks’ success lies partly in its aesthetic appeal,” he explains. “It has achieved a contemporary new look that is unique to the area, bringing together earthy tones with French Provencal red brick and grey plaster. Further, it offers all the comforts of modern-day living within a naturally beautiful environment secured around the clock by electric fencing, 24 hour manned gates and guard patrols, which is what people increasingly want today.”

Boksburg is also good news for entry level buyers, who are often left out in the cold in other towns and cities where stock in the R500 000 to R700 000 price range is extremely limited. According to Dugmore, there are a number of new affordable developments both under construction and in the pipeline. In Ravenswood, a smallholdings belt until recently, developers are buying up the land to build modern, affordable sectional title complexes specifically for first time homebuyers. Established suburbs such as Dawn Park, Parkrand, Van Dyk Park, Elspark and Impala Park also offer a good selection of affordable homes, starting at R550 000, which will buy a new two bedroom, one bathroom unit with shade cloth carport in a multi-storey sectional title complex. Hugely popular with younger families in search of affordability, security and modern design, they’re also attracting growing interest from investors, he says.

Those with R800 000 to spend will be able to buy a unit with an additional bedroom and bathroom or alternatively a small house in older areas such as Boksburg South, while R1.2 plus is the going price for a freestanding, three bedroom house with two bathrooms and double garage.

One of Dugmore’s best value buys in this price range at the moment is a recently listed, modernized house in Van Dyk Park with double garage, pool and a separate, self-contained flatlet. “At R860 000, this translates to outstanding value in the current market,” he maintains.

Dugmore says the Boksburg market is also extremely investor-friendly right now. For best returns, he advocates focusing on units for under R600 000 with low levies in a good area. These, he says, will ensure good rental returns as well as long term capital growth. “Present gross rental yields of 6 to 7% can be expected, and if one combines the gross yield with an annual capital growth of 4.8%, the figure looks even better, provided that the maintenance and levy figures are kept to a minimum. That’s the reasoning behind buying a townhouse or flat for investment, since the need for garden and pool maintenance is eliminated. These are expenses that eat into net profits and should therefore be avoided.”

Harcourts’ Northern Region continues to experience heightened activity with high auction numbers and a rising median sale price which keeps creeping up each month, following a strong start to the year.

Read more….

However, the lush residential suburb that grew out of a weekend and holiday retreat for wealthy Durban residents can no longer lay claim to being the only top-of-the-hill destination, avers Murray Aberdein, principal of Harcourts Suburban Spaces.

Aberdein, whose company recently joined the giant Harcourts group after five years of successful operation as an independent, explains: “Hillcrest, long its countrified neighbour, has superseded Kloof as the economic hub of the Upper Highway on the back of intense and large-scale commercial, retail and residential development. The centre of Hillcrest today bears no resemblance to the little village of ten years ago, and the smallholdings and sugar cane fields that characterised the area have now made way for acres of prime secure estates such as Kirtlington, Le Domaine, Cotswold Downs and Langford, to name but a few.”

He continues: “The most interesting trend we’re witnessing is the shift in pricing premiums between the two areas. Seven to 10 years ago, Kloof house prices were about 25 percent higher than those in Hillcrest across the board. With the massive growth of Hillcrest’s town centre and the development of numerous shopping centres and exclusive estates, however, there is no longer a price premium for Kloof. Buyers aren’t suburb-bound anymore – rather they’re looking in a price range, and accordingly want to see all that’s on offer in the Upper Highway area. As a result, house prices in Hillcrest are now on a par with those in Kloof.”

Testimony to his assertion is the strong take-up of homes in Hillcrest to the point where he says there’s a shortage of correctly priced stock, not only in the relatively affordable R1 million to R2 million price bracket but also in the luxury R3,5 million plus category.

Currently, most demand is for townhouses up to R2,5 million, says Aberdein. These buyers are predominantly young and upwardly mobile (“yuppies”) from all race groups as well as older, local residents wanting to downsize. “Young buyers want to live in a family friendly environment, close to good schools. The downsizers want to remain in the area while scaling down from their large family houses to lock-up-and-go living,” he says. In this price range, they can expect to get a 200² to 250 m² unit comprising three bedrooms, two bathrooms, two lounges and a double garage within secure perimeters.

The “go-to” suburbs at the top-end of the market include the Kloof Golf Course area and Inanda Road in Hillcrest, with the starting price in this category around R4 million, notes Aberdein further. This will buy a large freestanding house on a stand of at least 3600m² in prime Kloof, or a unit on an upmarket, secure estate that offers at least three bedrooms, two bathrooms, two lounges, double garage and a swimming pool. Buyers can also expect something extra, whether it is a guest wing, cinema room, ducted air-conditioning, central vacuum system or home office.

Since the beginning of the year, the most expensive home to be sold by Aberdein’s office was in Kirtlington Estate on Inanda Road, Hillcrest. Comprising five bedrooms, four bathrooms, three lounges, three garages, a jacuzzi/sauna, a home gym room and a swimming pool, the property changed hands for R6,1 million in February 2013.

Kirtlington Estate is also the address of one of his office’s most exclusive listings: a contemporary style 760m² home with soaring sculpted beams and gleaming hard wood floors, on the market for R8, 95 million. The property, which has been featured in a number of décor magazines, offers four bedrooms, four bathrooms, three lounges, ducted air-conditioning, cinema room, bar lounge and games room, Jacuzzi with 180 degree views, north-facing central inner garden, and many other extraordinary features which Aberdein says will appeal to a buyer on the lookout for something “spectacularly different”.

While the Upper Highway tends to favour mid- to upper-end buyers, there are opportunities, though rare, for those with limited budgets. According to Aberdein, it’s possible to buy a starter home in Kloof or Waterfall for around R900 000 and units in affordably priced complexes such as Aintree Lane, which is popular with first time buyers and investors. “Townhouses with small gardens and low levies are particularly sought-after by investors who are experiencing rental yields of up to 9%, depending on where they buy and what they pay,” he says.

Expecting his market to start making “better-than-inflation gains throughout the rest of 2013 and 2014, and then improving steadily thereafter”, Aberdein says the financial institutions appear to be more willing to grant mortgage bonds of late. “The self-employed, who make up a large portion of our buyers, really struggled to secure home loans last year, which effectively put the brakes on market activity. With the relaxation in lending criteria, I expect the market to show good growth in terms of both selling prices and unit sales going forward.”

A further sign that the market is poised for growth is renewed interest from developers after a five year hiatus. “Developers are making serious enquiries, and I’m in discussion with three of them, which is exciting,” he says.

That’s according to Richard Gray, CEO of Harcourts Real Estate South Africa, who says it’s a question that calls for an honest answer, best arrived at by an objective analysis of its best and worst features.

“And if you find it difficult to be objective, get input from someone else who will be honest,” he adds, “since an honest answer will help you arrive at a realistic selling date as well as an achievable selling price.”

Sellers generally don’t see their homes with the same eyes of prospective buyers, he continues. “Broken windows, peeling paintwork, missing roof tiles, sagging gates and mould in the shower – these tend to go unnoticed by owners after a while. Yet, they are detractors that will stand out a mile to buyers, who will either be put off the property completely or they’ll use them to justify a low offer.”

“Buyers who are prepared to upgrade or renovate – and they are in the vast minority – will not pay a premium for the property because of the danger of over-capitalising,” he continues. “It’s therefore critical for sellers to ask themselves what they would expect to get for their money and then, if their home offers this. While shortcomings such as location are unchangeable, there are many budget-friendly improvements that will improve the appearance and buyer appeal of the property significantly.”

The best place to start is in the street outside. Gray explains: “This is where buyers will form a first – and lasting – impression of your home, so you need to assess its verge appeal. If you don’t like its appearance, buyers probably won’t either. Look critically at the overall state of repair as well as the garden. Is it neat and welcoming or run-down and over-grown? If the gates sag, the driveway is broken or the garden unkempt and full of weeds, you need to schedule in some maintenance before putting it on the market.”

It’s at this point that a re-paint should be considered, he says further. “Painting is one of the quickest, most effective ways of sprucing up a property, so if your budget permits, list this as a priority. And while your favourite colour may be purple or pink, rather choose a neutral shade that will appeal to the widest selection of buyers. ”

Re-hanging gates and cleaning up around the house can also make a significant difference to the property’s saleability, as will getting rid of broken plant pots, fixing broken gutters and windows and weeding and mowing.

Still outside, Gray suggests prospective sellers take a tour of their neighbourhood to see what other properties are on the market. “You need to know what you’re competing with, so ascertain the asking prices and the length of time they’ve been on the market, which will allow you to set a realistic selling price.”

It’s now time for the interior analysis.

Gray’s advice on entering the front door is to stop and sniff. “The smell of animals is extremely off-putting for buyers,” he warns. “You may be oblivious to the doggy odour emanating from your carpets but buyers won’t be. It’s this type of problem that an honest friend should pick up and share, which will in turn allow you to do the requisite cleaning that will make your home market-ready.”

Your home inspection should also focus on mess and clutter, the condition of the interior paint, the cleanliness of the kitchen and bathrooms and how well lit it is.

“Prospective buyers like to picture their own furniture and pictures in a house, something that will be almost impossible for them to do if the place is jam-packed with tables, chairs, boxes and ornaments,” he points out. For an instant and appealing facelift, his advice is to store all but the most essential stuff and, if necessary, have the inside walls repainted. He also recommends having the grouting re-done in discoloured bathrooms and kitchens, tackling dripping taps and cleaning light fittings and switches.

Gray says most of these are cosmetic fixes that would be recommended by any competent estate agent, bearing in mind that the majority of buyers want to be able to move in and live. “What is not allowed is a superficial patch of major defects such as rising damp, leaky roofs and broken pipes, which will cause you as the seller to run foul of the law.”

Having done a thorough inspection of your home, you now need to establish what price you would be willing to pay for it. “If you arrive at a selling price based on how much you need to pay off debt or upgrade to a better property, you’re going to spend a long time on the market,” warns Gray. In this vein, he also cautions against choosing an agent on the basis of who gives you the highest valuation.”

“The bottom line is that if you want the top price for your home, you have to give the market a top product. If you don’t, the buyers will simply move on to the next property.”

That’s according to Etienne Labuschagne, Principal of Harcourts Select, one of Harcourts Real Estate SA’s newest members.

Labuschagne, who heads up a team of 20 qualified “cherry picked” estate agents, says house prices in his area of operation, which comprises Bellville, Durbanville, Brackenfell, Kuils River, Parow and Kraaifontein amongst others, are showing growth of around 5% year-on-year. This he attributes to a number of factors, not least of all that the recession is receding, a belief supported by his company’s record turnover last year, after doubling its 2011 sales volumes.

However, he points out, buyers are still extremely price conscious and affordability therefore remains fundamental to continued market momentum. This is one of the reasons for the growing popularity of the area, which he says offers better brick-and-mortar value for money than its southern counterpart.

“Consumer price-shyness has catapulted the northern suburbs into the Western Cape’s real estate spotlight, owing to its competitively priced offerings,” he says. “On average, properties in the northern suburbs are about 20% less expensive than those in the south. You can buy a two bedroom apartment for R450 000 in Parow. The same flat on the southern side of Century City, which effectively divides the two areas, would cost about R550 000. Similarly, a neat three bedroom family home in Oakdale, Bellville will cost on average about R1m whereas in the southern suburbs you’ll struggle to find anything for under R1.3m. Even our mansions, which have price tags of up to R30m, offer better value per square metre.”

The second local market driver is lifestyle quality. “Today’s buyers are increasingly aware of the link between location and capital growth,” he says. “They’re looking further into the future than previous generations did and making considered, well thought out buying decisions with the focus on lifestyle combined with value growth. The northern suburbs, which still fall under the City of Cape Town municipality, are conveniently located within a 25 to 35 kilometre range of the city centre and close to highways and the airport, yet they offer a tranquil, more natural alternative to commercialised big city living.”

The growing popularity of the area is further underlined by a high rate of new development, particularly on the north eastern side. Labuschagne expects this “north east growth corridor” to be fully developed within the next ten to fifteen years, not least of all because it’s the last vacant land in the greater Metropole. “Everywhere else is bordered by the sea or agricultural land so there is nowhere else to go but here,” he explains.

As a result, suburbs such as Kraaifontein, which sits at the entrance to a number of wine routes, have become vibrant hubs of new building activity such as the award-winning R1,5 billion Buh-Rein lifestyle estate. Spread out over 87 hectares of reclaimed land, the estate will, on completion, comprise more than 3 200 apartments, 133 freestanding homes and 137 townhouses as well as a shopping centre, school, medical centre, take away, petrol station, sports field and 20km of cycling and running paths. Priced from R450 000 to around R1,5m, its residential units are selling quickly, which Labuschagne attributes to its entry level and middle class affordability as well as its focus on healthy outdoor living.

“There’s a very positive feeling in the market place at the moment, not least of all because the banks are granting loans more easily,” he continues, “which is why properties, particularly those in the lower to middle price ranges should sell within the first month of listing. The buyers are out there, so if a home isn’t selling, it’s either because of a lack of area knowledge and marketing skills by the listing agent, or it’s over-priced.”

That’s the assertion of Louis Barbosa, principal of Harcourts Rhino in Roodepoort on the West Rand.

Calling the West Rand “the undiscovered jewel in the Gauteng crown”, Barbosa says people venturing out west for the first time are invariably impressed at the area’s facilities, scenic countryside setting and the competitive pricing of its housing stock. This, along with its proximity to excellent highways, which soften the distance between the Johannesburg city centre and home, is behind a growing number of buyers’ decisions to cancel their searches in other closer, though more expensive, locales, maintains Barbosa, a 25 year veteran of the West Rand property sector.

Extending from Randfontein in the west to Roodepoort in the east and encompassing Krugersdorp, the West Rand grew out of a shanty town created by gold diggers in the late 1800s. Today it’s a 4087km² tapestry of residential suburbs, commercial and industrial activity, agricultural holdings, mines and new development.

Bordered by the centuries-old Magaliesburg Mountains to the west, it’s also home to the world-renowned Walter Sisulu Botanical Gardens and the Cradle of Humankind as well as a host of hospitals, schools, golf courses, malls and shops and entertainment centres, says Barbosa.

Upbeat after a vibrant first quarter, Barbosa says his office is enjoying healthy activity throughout the area, with particular demand not so much for suburbs as for price ranges. “Most buying interest is up to the mid-R1 millions, although having said that, a good number of sales are taking place across all price ranges which I attribute in part to the correct price counseling of our sellers,” he avers. To this end, he says properly priced properties are selling within 21 to 30 days of being listed.

Commenting on current market trends on the West Rand, Barbosa says buying decisions tend to hinge around three factors: access to transport to and from work, proximity to schools and affordability. “The popular suburbs are therefore those in which these aspirations can be met. Some folks buy freestanding homes in the older suburbs while others prefer town houses and a simpler, more modern lifestyle. On the West Rand, they’re not limited to townhouse living owing to budget constraints. There are freestanding houses in the same price range as townhouses, albeit in the older suburbs.”

First time buying activity is particularly strong at the moment, he continues, hence the quick turnover of units in the R400 000 to R600 000 price range, the threshold at which no transfer duty is payable.

This will typically buy a two or three bedroom apartment or townhouse, with at least one bathroom and a garage or carport. Among the best of his office’s listings in this category at the moment is a neat, secure unit in Wilgeheuwel for R439 000. Offering two bedrooms, full bathroom, modern kitchen, balcony with built-in braai and a carport, it’s an ideal starter home or buy-to-let property, he says.

Buyers who prefer freehold living have a wide choice, from basic three bedroom houses in areas such as Maraisburg and Florida, which start at around R650 000 to larger, more luxurious family homes in Wilro Park, Noordheuwel, Roodekrans and Helderkruin, which cost upwards of R1 million.

At the top end of the market, in suburbs such as Helderkruin View, Noordkruin, Noordheuwel, and Ruimsig, Barbosa says large, quality homes in beautiful settings carry price tags of R2 million plus, with some properties in excess of R10 million.

New office listings in this category include a 408m2 country lodge in Kenmare for R2, 150 million. The luxury home, which overlooks the Kenmare Kloofs River, comprises four living areas, a number of sundecks, balconies, sundecks and “chill out” areas, four bedrooms, a study, two and a half bathrooms, guest flat, domestic accommodation, double garage and double carport. Among its many unique features are full length windows, highly polished Rhodesian Teak floors and stepping stone walkways through the infinity pool to the entertainment boma.

There’s also an elegant new 300m2 double-storey in Ruimsig for R2,150 million. It offers four bedrooms (main bathroom en suite), family bathroom and guest bathroom as well as an ultra-modern open-plan kitchen, formal dining and living rooms and a separate family room, double garage and pool in lush, manicured garden.

Barbosa is expecting the West Rand property market to be further stimulated as new developments such as Cradle Stone Mall near the Silver Star Casino reach finalization, which he believes will have a knock-on effect on employment and convenience for residents.

Cautiously optimistic about the continued healthy performance of the West Rand’s real estate sector going forward, he says the potential exists for capital growth to be better than inflation, lending credence to property’s value as a good, long-term investment vehicle.

That’s the word from Jeanne Van Jaarsveldt, general manager of Harcourts SA and vice president of the Institute of Estate Agents of South Africa (IEASA), who regards the partnership between the long-established Institute and newly formed Real Estate Business Owners of South Africa (REBOSA) as a major step towards professionalising the sector.

“Collectively, the IEASA and REBOSA represent an overwhelming portion of the real estate industry,” he says. “Together, they intend to carve a new road into the country’s property landscape in the interests of the public as well as business owners and estate agents.”

Van Jaarsveldt believes that the partnership is another welcome and positive step towards professionalising the sector, following the transfer of the Estate Agency Affairs Board (EAAB) from the Department of Trade and Industry to the Department of Human Settlements under the watchful eye of Minister Tokyo Sexwale. “The EAAB is the government-appointed industry regulator so it’s critical that its governance is sound. The transfer of the EAAB and the real estate industry to Minister Sexwale’s department was a strategic move by Government and one that has proved to be extremely successful.”

To this end, he endorses Sexwale’s decision to appoint Advocate Taswell Papier to administer the EAAB, saying that his move had paid off. “Advocate Papier got stuck into getting the EAAB’s house in order, as a result of which the administration of the EAAB has been lifted and it has a new acting CEO at the helm.”

The signing of the memorandum of understanding is a further indication of the move towards professionalising the industry and one that could not have come at a more important time, he believes. “The real estate sector is poised for dramatic legislative changes this year so it’s critical that all role players have a voice at the relevant forums. If we don’t take this seriously, decisions will be made for the industry without consultation, which could have far-reaching effects on its functionality in terms of transformation, regulation, education, qualification, EAAB inspections and SARS to name but a few. After numerous meetings and negotiations in 2012, the IEASA, which currently represents both employees (agents) and employers (principals), and REBOSA (which represents employers) have come to a clear understanding of how to best represent the industry in an equal, representative and inclusive manner,” he says.

According to Van Jaarsveldt, one of the partnership’s key objectives is the transformation of the industry in a way that will benefit both employees and business owners going forward. “Statistics released by the EAAB at the end of 2012 show that the real estate industry is predominantly white, with a mere 8% (2917) of the 34 191 registered estate agents being black. This is a concern but in same breath a huge opportunity since the black middle class home owner is the fastest growing segment of the market. Accordingly, the partnership will focus on creating awareness among black people of the viability of real estate as a career, not only financially but also with regard to personal growth and development prospects.”

Further to this, he says the affiliation between the two entities will serve as a springboard for industry-related bodies to engage in meaningful discussions about key issues such as legislation and industry governance.

“We welcome tighter controls such as the Receiver of Revenue’s new taxation rules on agents’ commission, which while not directly affecting buyers and sellers, does encourage estate agents and principals to ensure their own houses are in order. This is integral to the integrity and professionalization of the industry,” he avers.