Pam Golding launches Property Index

The Pam Golding Property group has launched what is being called the country's first comprehensive residential property index.

The CEO of the Pam Golding Property group, Andrew Golding, explained that the Pam Golding Residential Property Index fills the need for unbiased but in-depth analysis of national market information.

Rather than relying on sales averages, the Index uses a "repeat sales" methodology charting the price information of properties which have transacted at least twice within a specified period of time. This is through incorporating residential property transactions registered at the Deeds Office together with other data sources across the country's property market.

The company explained the first edition of the Index reveals "robust activity" in all price segments and acceleration in sales growth among properties valued at ZAR 1 million (USD 92,000) or less. Furthermore, whilst value growth in higher priced properties of more than ZAR 3 million has slowed, these properties continue to lead the market and have grown in value by approximately 15% year-on-year.

The Index also forecasts that that this trend will continue owing to growing confidence, demand from a growing middle class and accelerating urbanisation.

Foreign buyers in South Africa's Luxury Real Estate Market

Cape Town’s ‘the Castle’, an imitation of Germany’s Lichtenstein Castle, a historic neo-Gothic fortress, houses a banquet hall lined with armour suits and stained windows, 12 bedrooms and a swimming pool. With views over the city's Hout Bay, there is a helipad and natural waterfall, accessible only by a private mountain road or helicopter.

‘The Castle’ is one of the most famous real estate landmarks of Cape Town, formerly a guest house and popular wedding reception venue.

However, it has now closed a deal during 2012, sold to a ‘high-profile’ Russian businessman for $2.2million.

This is just one piece of prime real estate acquired from the Cape Town market by a Russian. It has been claimed by local real estate agents that affluent Russian buyers have also purchased numerous other multi-million-dollar homes along the city's coast over the last several years, moving into the region's blend of sun, mountains and sea.

Residential property trending amongst investment trusts

Freedom Property Fund, the fourth property company listing on the Johannesburg Stock Exchange (JSE) this year, last week announced it had launched two major residential property developments in an attempt to boost the group’s portfolio.

Residential property exposure on the JSE was mostly represented by two sister companies, Octodec Investments and Premium Properties — However, this is set to shift as interest in the residential sector is accelerating amongst South Africa’s listed Real Estate Investment Trusts (REITs).

Retail assets such as shopping centres have been proving popular, however property funds are finding opportunities within housing.

Foreign buyers purchase within developing regions of South Africa

Nigerians have been ranked amongst some of the top foreign buyers of choice properties throughout different parts of South Africa, who are particularly focusing on developing areas rather than the major regions of Cape Town, Durban, Johannesburg and Pretoria.

For example, Nigerians alongside other foreign buyers purchased around 670 properties worth approximately R800million in Kwazulu Natal and 260 properties worth approximately R23million in the Eastern Cape. It has been revealed that there is a growing trend amongst the said foreign buyers towards purchasing properties in South Africa as an investment, rather than for personal use.