Goverment’s proposal for 20% of new residential property developments to be set aside for low-cost housing has raised a number of questions and challenges for developers.
On the back of a strong run over the past three years, the listed property sector is expected to produce a total return of 16% over the next year - made up of 10% growth in distributions and 6% growth in capital.
South Africa's listed property sector is expected to produce a total return of 16% over the next year, according to Metropolitan Asset Managers.
Nominal house price growth more than halved last year as buyers shied away from an already expensive housing market. According to the latest Absa house price index, nominal price growth declined from 30,8% year on year in January last year to 14,7% in December.
There is still very much a place for listed property in the form of property loan stocks and property unit trusts in one's portfolio - particularly if one is looking for increased income.
George Palmer, one of Johannesburg's first big investors in inner-city residential property, is about to sell most of his portfolio.
The Free State area has been highlighted by real estate group, Pam Golding Properties, as a growth area both in terms of the property market as well as increased market share.
The moratorium on development in Lorraine will be in place for at least three to four months, during which time no further applications to build will be approved by the Nelson Mandela Bay municipality.

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