After stabilising at +3.01% in Q4 2023, national house price inflation in South Africa has inched higher in Q1 2024, rising to +3.1% in March 2024, with anticipated lower interest rates later this year and stronger economic growth likely to boost both market activity and house price growth in late-2024, according to the latest Pam Golding Properties Residential Property Index.

Such is the surge in demand for student accommodation in the university town of Stellenbosch in the Cape Winelands, that investors – and parents – are snapping up units in sectional title developments designed to cater for this lucrative market.

According to Louise Varga, Pam Golding Properties area manager for Stellenbosch, Somerset West, Gordon’s Bay and Strand: “The accelerated demand for student accommodation has pushed up property prices, especially sectional title properties close to Stellenbosch University campus.

“This demand translates into meaningful capital returns on investment for astute buyers, particularly those who acquire units on or soon after launch.  For example, a buyer who purchased an apartment for R2.4 million in Beau Vie sold it for R2.8 million a year later, achieving a 17% capital return in just one year.

“In another instance, we sold an entire apartment block Beau Vie 2 off plan to an investor even before it came to market, as he understood and seized the opportunity to capitalise on the high demand for student accommodation in Stellenbosch.”

Continues Varga: “In 2015 a two-bedroom unit in Andringa Walk sold for R2.65 million and was rented out for R9 400 per month, while today, a two-bedroom unit in this development sells for over R4.7 million and achieves rentals of R24 500 a month. The capital growth achieved in eight years is almost 77% while the rental has increased by 160% over the same period, and even during Covid, as rental demand continues to increase exponentially, exceeding supply.

“In 2010, we sold erven in the development, Brandwacht aan Rivier for R995 000 to buyers purchasing off plan, with some selling their erven three months after transfer for R1.495 million – that’s R500 000 or just over 50% more than they paid for them, which underscores the benefit of getting in early on these new developments.

“Furthermore,” says Varga, “a new development like Newinbosch, that offers a wide variety of homes and accommodation plus an endless list of amenities has sold over R200 million in residential property in just five months, on one estate.”

Exemplar REITail has declared a dividend of 141,1 cents per share (cps) for the full year ended 28
February 2023.

There’s nothing more exciting (or nerve-wracking) than submitting an Offer to Purchase on a property.

The anchor tenant is Road Adventure Dirt (Pty) Ltd (RAD) which is the premier KTM motorcycle dealer in Gauteng.

Given the vulnerability of South Africa’s economy in the wake of last week’s unrest, as anticipated, the Monetary Policy Committee adopted an accommodative approach by deciding to keep the repo rate steady at 3.5%, which leaves the prime rate at 7%, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

Fortress REIT announced that their biggest logistics development to date was signed with Pick N Pay at their flagship premium-grade Eastport Logistics Park, close to ORT Airport in Gauteng.

Rural and township retail specialists, Exemplar REITail, have declared a final dividend of 49.07 cents per share for the year ended 28 February 2021.

Following successful hearings in Limpopo, the North West and Mpumalanga, the public hearings on the Expropriation Bill have now kicked-off in Gauteng.

Park Village Auctions brings to market a well Designed Factory with Offices