South African house prices have grown to 4.6 percent in July from 3.1 percent in June as revealed in the FNB House Price Index released yesterday.
Properties in Amanzimtoti are said to be still affordable with magnificient views of the area.
According to the report, this is the highest growth rate in house prices since August 2010.
FNB Home Loans property strategist, John Loos says in real terms when adjusted for consumer price inflation, the year-on-year growth for June remained in negative territory to the tune of -1.8 percent.
“On a month-to-month basis, average price growth was unchanged at 0.73 percent while the average price of properties transacted in the index was R815. 511,” says Loos.
He explains that the acceleration in the year-on-year rate of house price inflation is believed to still be the lagged impact of a mild uptick in residential demand as reported in the FNB Estate Agent Survey. Two further cuts in interest rates in late 2010 being the other factor.
The highest point in real terms growth was recorded in February 2008 in the FNB House Price Index’s 11 year history. The cumulative downward adjustment in real house prices from the high of February 2008 to July 2011 measures -14.7 percent. In nominal terms, the index revealed a mild cumulative increase of +6.4 percent from February 2008 to July 2011.
“Our expectation is for the recent acceleration in house price growth to be short-lived, with a slowing in the pace of growth resuming late in 2011,” Loos said.
The property market may not be what it used to be what with many people battling to secure home loans and some home owners selling to become tenants. Estate agents, however, say in some areas, they are seeing an increase in property buyers. Even with house prices declining, with careful search one can easily find bargains.
In Amanzimtoti, KwaZulu-Natal, the residential property market is said to be far more positive than it was two years ago.
According to Wendy Walker from Rawson Properties, the reason for this improved market is that sellers are realistic about market prices. They are no longer holding out for 2007 prices and banks in some cases, are reassessing their lending criteria and showing signs of loosening up on loans.
“Lower interest rates have helped many homeowners to keep their homes and few owners who bought between 2006 and 2008 are stretching their resources,” says Walker.
Amanzimtoti is described as a market attracting middle class buyers and families looking to spend between R950 000 to R1.5 million. This being a coastal location, it is considered affordable as buyers purchase into a lifestyle without paying high prices.
“Right now, I am convinced that there are few areas in KwaZulu-Natal where buyers can get better value than in Amanzimtoti,” says Walker.
Prime property at Woodbridge Island selling for R39 million. This mansion was commissioned in 1929 by the Graaff family, one of South Africa's most famous and influential political dynasties.
In Cape Town buyers are spoiled for choice at Woodbridge Island with prices for seafront properties ranging from R850 000 for a two bedroom apartment and around R1.5 million to R4 million for houses. This depends on whether they are located on the lagoon-front, the beachfront or in the middle of the Island.
Ivan Swart, Pam Golding Properties (PGP) Western Seaboard manager explains that Woodbridge Island lies between the Atlantic Ocean and the Milnerton Lagoon with a single access point via Loxton Road, which connects the island to the mainland over a modern road bridge.
“A selling point of the estate is its high level of security, a single gated access barrier manned 24-hours a day,” says Swart.
He says because of lack of easy exit from the suburb, it is very difficult for criminals to escape undetected and so Woodbridge Island has low crime levels.
If you are looking to buy a piece of history in Woodbridge Island and money is not an issue, consider the mansion Zonnekus and very first house ever built on the island priced at R39 million.
Swart says the home was commissioned in 1929 by Sir David Graff, one of South Africa’s most famous and influential political dynasties.
After Graaff’s death in 1931, the property was leased to the British High Commissioner. The home and a portion of its grounds were purchased by Graaff’s descents in the 1950’s, before later passing on into other private hands. – Denise Mhlanga
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