22
CONSTRUCTION WORLD
JUNE
2014
PROPERTY
>
Dr Golding says this promising situ-
ation signals just how dynamic the
residential property sector is.
“Factors illustrating the market recovery
include a resurgence of investors, partly
due to high demand for rental accommo-
dation; sustained growth in middle income
sales, particularly among the emerging black
middle class; a desire for homes in loca-
tions which offer better security and access
to work and schools; the re-emergence of
the new developments market, mainly in
major centres and growth nodes, coupled
with demand for sectional title homes, the
continued strong performance of the top end
of the market and the re-emergence of the
über prime sales market to both local and
international buyers.”
Dr Golding says factors potentially
hamstringing further market recovery are
led by continued perceived limited access
to mortgage bonds, fewer homes coming
onto the market, affordability and a relative
seesawing of consumer sentiment.
“The recent half percent increase
in interest rates was a surprise in that it
occurred earlier than expected.
“In the interim, the residential property
market continues to improve. Values appear
to be outpacing volumes, which is encour-
aging, since sales volumes at present are
being curtailed by a shortage of stock, or by
slowing demand,” he says.
Bank analysts, while their data bases
are confined to their portion of the mort-
gage market, also report nominal growth in
value terms averaging between five percent
and eight percent. Lightstone, the country’s
leading property market analysts, reported
6,9 percent growth in sales transactions in
December 2013 over the previous year and a
21 percent growth in total sales values.
Turnover of R14,8-billion
“Against this backdrop, and for the financial
year from March 2013 to February 2014, Pam
Golding Properties (PGP) achieved sales turn-
over of R14,8-billion, which represents an
increase of 21% over the previous financial
year, while sales volumes (by units) reflected
a 13% improvement. PGP’s sales turnover
of R1,72-billion for the month of February
2014 is the highest monthly sales turnover
achieved since May 2007,” says Dr Golding.
At the top end of the market, over the
12 months to February 2014, PGP concluded
numerous sales in excess of R20-million
from various areas around the country.
In the Cape, successful sales on Cape Town’s
Atlantic Seaboard ranged from R20-million
up to R100,5-million and up to R26-million
in Cape Town’s Southern Suburbs. In the
Cape Winelands region, several commer-
cial farms in the Elgin/Grabouw area sold
for over R20-million. Lifestyle farms in Fran-
schhoek changed hands for up to R27-million
and a home on the De Zalze Golf Estate near
Stellenbosch fetched R21,555 million – the
highest price yet achieved for a property
on the estate. Numerous properties sold in
Gauteng in excess of R20-million.
Activity in the various price bands,
nationally, is attention-grabbing. In the
financial year ended February 2014, the
price bands which have reflected the highest
growth in sales turnover from a PGP perspec-
tive are as follows: in the price range from
R10-R20-million we have seen growth of
51,6%; from R20-million upwards we have
seen an increase in sales turnover of 47%;
from R4-million to R5-million growth of
39,6%, from R2-million to R3-million growth
of 18,5% and in the price band from R5-mil-
lion to R10-million growth of 17,5%.
“International buyers continue to demon-
strate their confidence in the South African
residential property market with purchasers
over the financial year broadly spread from a
variety of over 40 countries. Buyers from the
UK still comprise the biggest single country of
origin and Southern European countries are
well represented. Recent trends have seen
an increase in Chinese, Indian and Russian
buyers, while buyers from African countries
continue to rise to prominence and now
comprise some 20% of foreign investment in
residential property,” says Dr Golding.
Further afield
The Pam Golding Property group’s Interna-
tional and Projects Division continues to
achieve exceptional sales to offshore buyers
in the Indian Ocean Islands of Seychelles and
Mauritius, with a combined total of approx-
imately R825-million in sales for the past
financial year concluded on Eden Island,
Seychelles and in various prime located
developments in Mauritius. The recently
launched Golden Visa Programme in Portugal
which provides an opportunity for foreign
buyers of property − from an entry level of
€500 000 – to acquire residency status is
proving of major appeal for South Africans, as
is a similar programme in Spain.
“We are now well into what promises
to be a very busy new financial year, under-
scored by an active first quarter, during which
all our regions having performed well ahead
of expectations. We have consolidated and
increased market penetration and have high-
lighted several strategic areas in South Africa
which have significant potential for growth.
PGP’s plans for strategic growth include
further inroads into Africa and in this regard
have pinpointed Nigeria – the continent’s new
economic leader, as well as Ghana and Angola
as key areas,” concludes Dr Golding.
HEALTHY RESIDENTIAL
The South African residential property market is at last
showing signs of a healthy recovery, having slowly but steadily
recuperated from the recession of 2008. Increasing sales
volumes, rising values and growing demand all underline the
recovery to more normal trading conditions, says Dr Andrew
Golding, CE of the Pam Golding Property group.
property market
In Fresnaye (Cape Town), this house sold for
R30-million.
This Sandhurst (Johannesburg) property was
sold for R33-million.
