FNB Survey - End April 2011

The FNB Estate Agent Survey for the 1st quarter of 2011 points to agents’ perceptions of housing affordability, in terms of price levels relative to buyer income levels, having improved significantly.

We believe that this perception is to a large extent justified. As at the 1st quarter of 2011, it is very likely that housing affordability, as measured by the average house price/average remuneration ratio and by the instalment repayment/average remuneration ratio, continued to improve. This is due to anaemic house price growth of 0.82% year-on-year for the 1st quarter according to the FNB House Price Index, the likelihood of wage inflation being significantly stronger than house price growth, and a further decline in the average interest rate following a late-2010 interest rate cut.

However, affordability calculations are based on the wage growth of those employed, and after a major decline in formal sector jobs during the recession in 2008/9, recent employment growth remains very slow. Therefore, the household sector as a whole remains financially constrained, and despite the improvement in traditional measures of housing affordability, housing demand growth has not yet set the world alight.

Therefore, it is not surprising that, when house prices around major metros are measured on a value band basis, the affordable area segment has shown the best price growth in recent times. On a year-on-year basis, Affordable Area (average price = R377,864) average price growth measured +8.9% for the 1st quarter of 2011. Within the Affordable Segment, the Former Black Township component stands out as being the strongest, which may also reflect a lack of supply of stock relative to former suburban areas. The other 3 area value bands were grouped in a very narrow range of price growth, with Top End Areas (average price = R1.882m) showing +5.2% growth, Middle Income Areas (average price = R712,764) showing +4.6% increase, and High Income Areas (average price = R1.086m) rising by +3.8%.

The household sector’s financial constraints continue to keep it focused on basics, and this can be seen in coastal holiday town price estimates continuing to show significant deflation to the tune of -6.9% year-on-year.

However, despite some difference in the relative performances of segments, virtually all housing segments that we measure have shown further de-celeration in price growth during the 1st quarter.

The exception was the “Sectional Title Less than 2 Bedroom” segment. Whereas, the Sectional Title 3 Bedroom sub-segment recorded a meagre +0.3% year-on-year price growth in the 1st quarter, and the 2 Bedroom sub-segment +0.4%, the “Sectional Title Less than 2 Bedroom” sub-segment sub-segment showed a significantly better +6.6% growth, and was the only major segment in both the full title and sectional title markets to see its growth accelerate, from the previous quarter’s +4.8%. One must bear in mind that the Less than 2 Bedroom sub-segment tends to be more cyclical than the others, and that it also saw the biggest price dip during 2008/9 of the key sectional title sub-segments, so its prices come off a lower base. This segment is believed to be a major target of 1st time buyers in the former white suburban areas, a source of demand that is more cyclical than overall residential demand. Its reliance on 1st time buyers may be starting to benefit it at present, because our FNB Estate Agent Survey shows an increase in 1st time buyers as a percentage of total buyers from 17% in the 4th quarter of 2010 to 22% in the 1st quarter of 2011.

John Loos
Strategist

FNB Home Loans
Ground Floor, fairland Campus, Enterprise Road, Fairland, Johannesburg
Tel (011) 6490125, Fax (086) 5140478
e-mail: john.loos@fnb.co.za

The noose is tightening...

IMMEDIATE RELEASE
07 APRIL 2011
MEDIA RELEASE – ESTATE AGENCY AFFAIRS BOARD ANNOUNCES GRANT OF AMNESTY PERIOD FOR ILLEGAL OPERATORS
The Estate Agency Affairs Board is pleased to announce that it has resolved to grant a three-month amnesty period to illegally operating estate agency practitioners. It is to be hoped that this innovative step will assist all persons who are presently operating illegally as estate agents to regularise their status. The EAAB firmly believes that the grant of amnesty will not only promote a positive climate of transparency and reconciliation between itself, illegal estate agency practitioners and consumers but also encourage offenders, who might otherwise be reluctant to do so, to come forward and legalise their activities as estate agents. It is to be underscored, in this regard, that all practicing estate agents are obliged by the provisions of the Estate Agency Affairs Act to apply to the EAAB for, and be issued with, valid fidelity fund certificates before engaging in any estate agency functions and activities.
The three-month amnesty period for this purpose commences on Friday, 15 April 2011 and terminates on Friday, 15 July 2011. Persons who wish to utilise the opportunity to apply for amnesty will be requested to submit an affidavit to the EAAB in which full and honest disclosure is made of all estate agency activities that were undertaken when the applicants were not authorised to perform the functions and activities of an estate agent. Amnesty applications will be comprehensively considered and evaluated by a special committee of the EAAB which will comprise at least three, but not more than five, members. The committee may also include independent advisers and/or consultants.
The following criteria will, amongst others, be taken into account by the committee when deciding whether or not to grant amnesty applications, namely, the apparent motive of the applicant in bringing the application; the context in which the admitted contravention of the provisions of the Estate Agency Affairs Act took place; the legal and factual nature of the contraventions of the Estate Agency Affairs Act committed by the applicant; the interests of both the public as well as the general body of estate agents; and justice to the applicant as a fit and proper person.
In return for the granting of amnesty applicants will be afforded a reasonable time to get their estate agency affairs in order. The committee will, thus, be entitled to give suitable directions to successful applicants on such important aspects as applications to be made by the applicant for registration as an estate agent; the payment by the applicant of any administrative or other penalties; the opening and maintenance by the applicant of a properly designated trust account; the appointment by the applicant of auditors; the auditing of the books and records of the applicant’s estate agency undertaking; and the obtaining by the applicant of the required estate agency educational qualification(s).
Applicants who are granted amnesty can be reassured that no internal disciplinary steps or measures will be instituted by the EAAB against them arising from any previous non-compliance with the provisions of the Estate Agency Affairs Act.
The EAAB is confident that great success will be achieved in implementing the amnesty and earnestly calls upon on all affected persons immediately to join the regulatory fold and to become accepted professional estate agents.
Please see the attached Amnesty Policy for more information.
End//
For all media enquiries:
Ms Portia Mofikoe
Head: Marketing and Communications
Estate Agency Affairs Board
083 4490 883 or 083 993 6120
Tel: 011 731 5662 or Portia.mofikoe@eaab.org.za

EAAB - agge nee!

don’t have MNet?



http://beta.mnet.co.za/carteblanche/Article.aspx?ID=4340

REBOSA

NEW REPRESENTATIVE REAL ESTATE INDUSTRY BODIES FORMED
In an important and positive move which will enable the South African real estate industry to participate more effectively in key decision-making within the sector, two representative bodies have been formed - one, an employees’ and real estate agents’ organisation (representing labour), and the other an employers’, principals’ or business owners’ organisation (representing business). This move is in line with current recommendations in order to separate these differing interests clearly but also to allow for greater and more widespread representation and inclusivity.
The formation of the two bodies has the support of The Institute of Estate Agents of South Africa (IEASA). IEASA is currently structured to represent the interests of both business and labour (employers and employees, and this will in time evolve to represent only the labour component of the industry, namely the agents and employees, while a new employers’ organisation for real estate business owners, which is to be known as REBOSA (Real Estate Business Owners of South Africa) has been formed. REBOSA was established at a meeting of real estate stakeholders held in Johannesburg on 29 March 2011, where the steering committees from the various provinces also proposed principle terms of reference for a constitution and a code of conduct.
As organised business, and as organised labour, these two real estate industry associations will be able to participate in key decision-making processes. REBOSA will join the ranks of the Business Coalition of South Africa or Business Unity South Africa and as such will be represented at the National Economic Development and Labour Council (NEDLAC). NEDLAC's aim is to make economic decision-making more inclusive, and to promote the goals of economic growth and social equity. Via this process, government comes together with organised business, organised labour and organised community groupings to discuss and reach consensus on issues of social and economic policy.
As far as skills development goes, real estate organised labour and business will both participate on the SSETA structures and participate in developing their own future qualifications as the SSETA includes the Property Chamber. In terms of the Skills Development Act 97/1998 a chamber must consist of an equal number of members representing employees and employers and may include such additional members as the SETA determines.
A further important role that these two constituencies will play is to actively promote and facilitate the professionalisation of the real estate industry by registering as official Real Estate Professional Bodies with SAQA (South African Qualifications Authority). In this way new representative bodies will be able to become involved in the development of a body of specialised knowledge in accordance with international benchmarks, as well as be able to develop, award and revoke its own professional designations.
These are but three areas of specific involvement that the new structures will have influence over and need to work together and deliberate on. Over and above these are, of course, the multitude of general and specific industry issues that arise on a continuous basis (the plethora of new legislative changes being current examples) and which need to be dealt with in the best interests of the industry in general.
In May 2011, IEASA/REBOSA will be hosting a road show for both real estate employers and employees in 14 different regions throughout South Africa (including those who are not IEASA members), in order to explain and further determine the road forward . It is naturally important that all who are interested in this significant development and who wish to have a say, attend these road shows, which have been sponsored by SA Home Loans as primary and PayProp as secondary sponsors, thereby making it possible for this essential event to be offered free of charge to the real estate fraternity. The dates and venues for the road show can be viewed on www.ieasa.org.za and there will be a lucky draw with a trip to this year’s NAR Conference in California, USA to be won.
For further information and online bookings go to www.ieasa.org.za

Chaos at EAAB - What's new?

They are going to do inspections internally - why? They should just manage their contracts better - if they cannot do that, why would using internal staff be any better?

http://www.businessday.co.za/articles/Content.aspx?id=139639