Figures quoted last week by Mike van Alphen, National Manager of the Rawson Property Group’s bond origination division, Rawson Finance, show that interest in buying more expensive homes, e.g. those with a value of R4 million to R10 million, has increased and the average value of the individual bonds being applied for this year is consequently likely to be 14 to 16% higher than in 2014.
This, said Tony Clarke, Managing Director of the Rawson Property Group, is just one of many indicators giving reason to believe that residential property in South Africa is in for a satisfactory 2015.
Another important indication, said Clarke, is rents. Figures from the respected analysts, TPN, show that since 2011 the number of tenants in good standing with their landlords (i.e. paying on time or reasonably close to the specified date) has improved by 6% - from 79% in 2011 to 85% in the last quarter of 2014. What is more, figures from RentalConnect, the Rawson Property Group’s rental management system, show that inflation on residential rents is now running at close to 7,5% per annum and is set to remain at this level or above it for 2015.
Also particularly encouraging, said Clarke, are the latest figures regarding the number of first time home buyers being awarded bonds. Today 36% of these applicants are being given bonds, many with 100% loans.
Figures from Rawson Developers, added Clarke, show that investors too are back in the market with a vengeance with projects like “The Beaumont” and “The Rondebosch” seeing over 45% of the units being sold to buy-to-let investors.
“Property,” said Clarke, “has traditionally been an economic cornerstone in the western world and in many eastern economies — and with the many countries, including the Netherlands, Germany, Denmark and the USA, now recovering, property will continue to attract investors. Today, high net worth individuals from both the west and east have 35 to 40% of their assets in property and those predicting a slowdown in the appreciation rates do not realise how strong demand has become.”
Asked how this will impact on the Rawson Property Group, which now has over 220 franchises, Clarke said that he is budgeting for a 30% average growth this year.
“It is,” he said, “definitely achievable.”
For further information contact the Rawson Property Group on (021) 658 7100.
