Property News

About booms and busts

25-05-2012

The most recent Absa House Price Index indicates that nominal house prices have now been contracting for three months year on year. The latest figure shows a decline of 5% since April 2011. As a result, house prices are in real terms moving closer to their long-run trendline, aided by high building-cost inflation (which is now much higher than consumer inflation). Lucky South Africa, your bubble is deflating; not bursting!

Rode 2012 events to address challenges facing the property market

25-05-2012

With the month of May almost at its end, now is the time to note the following events which will be taking place in August 2012:

Industrial rentals still going nowhere

23-04-2012

For the time being, no improvement in the demand for industrial space is discernible, as vacancy rates continue to move sideways.

Booming Sandton leading the way

04-04-2012

There are early indications that the grade-A office market might be staging a recovery. The rally is being led by bellwether Sandton CBD, which showed phenomenal rental growth of 16% in the fourth quarter of 2011.

Building-construction industry in the throes of stagflation

27-03-2012

Not only does the building-construction sector remain in the doldrums, it is now apparently also entering a period of accelerated inflation.

Houses overvalued by 25%? A rejoinder

08-02-2012

It appears estate agents and house investors and other stakeholders in the housing market have experienced serious anguish and denial following the launch of Rode’s Report (quarter 4 of 2011) on 26 January 2012. At the press conference at FNB’s offices in Fairland, Johannesburg, I stated that houses were fundamentally overvalued by at least 25%; furthermore, that house prices will, as a consequence, decline in real terms over many years (unless one assumes a quick collapse like in the USA).

Moderately growing industrial rentals displaying slack demand

22-12-2011

Disappointing for the demand prospects of industrial property must have been the recent moderation in economic activity.

Cement sales growing again, but still no light at the end of the tunnel

24-11-2011

Despite sales of cement showing growth again, for the building industry there is still no light at the end of the tunnel.

Office demand still taking a siesta

20-10-2011

For now, no improvement in the demand for office space is detectable, this according to the latest issue of Rode’s Report on the State of the South African Property Market (2011:3).

Relapse in business confidence to further retard office demand

29-09-2011

For now, no improvement in the demand for office space is detectable, with vacancy rates in general continuing to move sideways.