logo
Container home trend gaining ground in JHB

Container home trend gaining ground in JHB

The Citizen15-05-2025

As Johannesburg's property landscape evolves, container homes are emerging as a practical solution for those looking for ways to maximise space, accommodate family members, and generate rental income. This trend is particularly noticeable in areas such as Johannesburg South, where container structures are increasingly being used as secondary dwellings, granny flats, or backyard rental units.
'From a cost-efficiency perspective, container homes can be an attractive long-term investment, particularly for buyers with budget constraints,' says Nadia Aucamp, broker/owner of RE/MAX All Stars. 'They offer affordability, quicker construction times, and potential sustainability benefits. Additionally, they can serve as rental units or supplementary dwellings, adding value to a property with multiple structures,' she states.
However, Aucamp notes that these homes are still seen primarily as supplementary, not primary, residences. 'In most markets, traditional brick-and-mortar homes retain stronger resale value. Container homes are often viewed as temporary or movable structures, which may impact appreciation over time.'
That said, growing acceptance and potential regulatory shifts could change this perception. 'As more municipalities begin formalising container housing regulations, and as public awareness grows, we could see improved resale values and broader market acceptance,' Aucamp adds.
While interest in container housing is growing in urban pockets like Johannesburg South and the inner city, areas such as Alberton and Germiston have yet to see widespread demand. This may be due to limited buyer awareness or a cautious approach from local authorities.
Aucamp cautions that regulatory clarity remains an obstacle. 'While Johannesburg is starting to embrace alternative housing models, approval processes still vary between municipalities. Container homes must comply with the National Building Regulations and Building Standards Act, which includes zoning, structural safety, and fire compliance.'
Financial institutions also typically require full municipal approval before financing properties with container homes. 'Prospective buyers should ensure all municipal by-laws are followed, including obtaining approved building plans. This is especially important for securing financing and ensuring future resale value,' Aucamp emphasizes.
Across South Africa, Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa, notes that there has been a gradual shift in the way people approach residential property. 'Many are not only viewing them as a place to live, but also as a way to generate income,' he states.
'Container homes offer an innovative response to changing housing needs, both for multi-generational living as well as for passive income streams. As regulation catches up with demand and market sentiment continues to evolve, we anticipate broader adoption and increased interest across the country,' he concludes.
Issued by: Kayla Ferguson

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Understanding how rental escalations work
Understanding how rental escalations work

The Citizen

time29-05-2025

  • The Citizen

Understanding how rental escalations work

The latest PayProp Rental Index revealed that the average rent in South Africa now sits at over R9 000 following a year-on-year rental growth of 5.2% for Q4 2024. This steady rise in rental figures spotlights the importance of understanding how rental escalations work. Whether you're a tenant or a landlord, understanding this concept is key to managing property costs and income effectively. Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa, explains that rental escalations are a mechanism designed to keep rent aligned with inflation, market trends, and property maintenance costs. 'The most efficient way to handle rental escalations is to have a pre-agreed annual increase in rent built into a lease agreement. This helps to set tenant expectations up front, avoiding surprise hikes. It also helps both parties plan their financials with predictability,' he explains. There are various ways annual escalations can be expressed in a rental agreement. Typically, the increase amount can either be linked to inflation or could be specified as a percentage, but each lease is different. 'Escalation rates are not fixed by law in South Africa but are negotiated between the tenant and landlord, typically before signing a lease if it is included in the agreement. A standard escalation rate in South Africa ranges between 6% and 10% per annum, though this can vary widely,' Goslett explains. Factors that typically influence the agreed rate include: Inflation rate (CPI): Landlords often base increases on inflation to ensure the rental income keeps pace with cost-of-living increases and property expenses. Currently, inflation is at an historic low of 2.7% (CPI): Landlords often base increases on inflation to ensure the rental income keeps pace with cost-of-living increases and property expenses. Currently, inflation is at an historic low of 2.7% Market conditions & demand : If rental demand is high, landlords may justify higher escalation rates that are above inflation. If the rental market is in the tenant's favour (e.g., high vacancy rates), there may be room to negotiate a lower escalation rate. : If rental demand is high, landlords may justify higher escalation rates that are above inflation. If the rental market is in the tenant's favour (e.g., high vacancy rates), there may be room to negotiate a lower escalation rate. Length of lease: Longer leases may have more moderate escalations to retain reliable tenants. Overly aggressive escalation rates can lead to tenant turnover, which in turn may cost more than the increased income due to vacancies and marketing. As rental prices continue to climb, Goslett emphasizes the increasing importance of understanding rental escalations. 'For tenants, it's about protecting affordability. For landlords, it's about maintaining the value of their investment. With proper awareness and communication, and through the help of a reliable rental agent, both parties can navigate rental escalations effectively and fairly,' Goslett concludes. Issued by: Kayla Ferguson

Property group urges SARB to cut interest rates for economic growth and job creation
Property group urges SARB to cut interest rates for economic growth and job creation

IOL News

time28-05-2025

  • IOL News

Property group urges SARB to cut interest rates for economic growth and job creation

Lower interest rates will reduce the cost of financing homes, thus enabling a higher affordability at a given monthly financing payment. Image: Simphiwe Mbokazi / Independent Newspapers. A South African property group has reiterated its call for the South African Reserve Bank (SARB) to step in with an interest rate cut as a vital stimulus for economic growth and job creation. National year-on-year house price inflation has maintained a modest pace of 2.8%, according to the latest figures from Lightstone's Property Index. This steady, albeit sluggish, trend is echoed in the RE/MAX National Housing Report for the first quarter of this year, which reveals a 2.1% increase in average house prices compared to the same period in 2024. With Consumer Price Inflation (CPI) sitting close by at 2.7% as of March, these figures paint a nuanced picture of South Africa's residential property landscape. As the economy stands at a pivotal juncture, a robust cut of at least 25 to 50 basis points is not just desirable but a critical imperative, according to Samuel Seeff, chairman of the Seeff Property Group. He said the country simply can no longer bear keeping the interest rate so high for so long. As it is, he said the overly cautious approach by the bank has missed at least two opportunities to provide relief to consumers and the economy. 'The pressing challenge of unemployment simply can no longer wait. A decisive move by the SARB now would signal a commitment to revitalising economic activity. It would also provide much-needed support to businesses and consumers, and facilitate an environment conducive to investment and job creation,' Seeff said. The property group said the case for such monetary easing is strongly supported by the current inflation landscape. It said despite the recent benign increase in inflation to 2.8%, it remains comfortably below the Reserve Bank's 3-6% target range. Despite headwinds out of Washington, it said the rand has also strengthened to below R18 to the US dollar. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading At the time of the open yesterday, the USDZAR traded at R17.88, according to Reezwana Sumad, research analyst at Nedbank CIB. 'The USDZAR traded steadily weaker over the course of the session to close the session at R17.92. Since the close last night, it has traded incrementally weaker, and the USDZAR is trading at R17.98 currently this morning. "The major currency pairs have also lost ground to the USD, with the EURUSD trading at 1,1305 this morning and the GBPUSD at 1,3470. Possible trading range for the USDZAR today(Wednesday) is R17,80 to R18.15,' Sumad said. She added that the local markets have traded cautiously over the week thus far and are likely to remain so ahead of the SARB's MPC. On the international front, she said headlines from the US continue to provide the catalyst for market activity. Seeff said the prevailing remarkably low inflation level indicated that demand-side pressures are relatively subdued and the risks of igniting an inflationary spiral through a rate cut are minimal at this stage. He said the stability of the currency provides further mitigation, thus providing a valuable window for the SARB to implement a more accommodative monetary policy stance that directly benefits the domestic economy. According to data analysed by Lightstone, which evaluated property bought by a natural person and where the transaction was for a single property, young homeowners are entering the market later than they did in the past, and are opting for bonded, secure living. In 2024, people aged between 20-35 (youth) accounted for 30% of residential property purchases, down from 36% in 2019 and 41% in 2014, with tough economic conditions and changing lifestyles cited as the likely reasons behind the shift. While youth accounted for 30% (52 500) of residential property transactions in 2024, it was the second largest group behind the Settled category (36-50) at 43% (76 000). The Mature category (51-64) (38 000) accounted for 21%, while the Pension category (65 and older) accounted for 6% (10 000). While the recent rate cuts have provided some relief, Seeff said the benefits have now been eroded by keeping the interest rate at least 100 basis points above the pre-Covid rate. He said time is ticking and the country simply can no longer wait. Seeff said there is now a golden opportunity for the bank to act boldly within the available monetary policy space to address the urgent needs of economic recovery and expansion without jeopardising its price stability mandate. A rate cut would inject much-needed momentum into the economy by lowering borrowing costs for businesses and stimulating investment while adding more money into the pockets of consumers to spend in the economy, he said. The property group said while a 25bps cut would be most welcome, they urged the Bank to provide a more robust cut of at least 50bps as an immediate injection of economic confidence to kickstart the economy. 'Naturally, the property market, which currently lags the pre-Covid volumes, will also benefit from a more pronounced rate cut. Aside from enabling more first-time property buyers to get into the market, it is an important economic contributor with a significant economic multiplier benefit,' Seeff said. Independent Media Property

Season 3 of 'Listing Cape Town': a luxurious showdown in the real estate arena
Season 3 of 'Listing Cape Town': a luxurious showdown in the real estate arena

IOL News

time26-05-2025

  • IOL News

Season 3 of 'Listing Cape Town': a luxurious showdown in the real estate arena

Season 3 of 'Listing Cape Town' will offer an exclusive look into the thriving property scene, showcasing stunning vistas, opulent homes, and the high-stakes deal-making involved in purchasing property. Image: Instagram. Get ready, Mzansi, "Listing Cape Town" is returning for a third season, bringing with it opulence, architectural delight and plenty of competition. The new season promises an unparalleled glimpse into the booming Cape Town property market, featuring breathtaking views, luxurious properties and the intense negotiations that make home buying more than just a transaction. The Mother City's expanding real estate market promises viewers a showcase of exquisite properties, including designer penthouses, beachfront villas, and sprawling winelands estates. New faces joining this season include Wendy Khumalo from RE/MAX, Neteske Gavin from Tyson Properties and Romy-Leé Ferreira and Dael Dyer from Law Real Estate. "It's been a whirlwind of ocean views, luxury homes, real estate hustle, and heartfelt moments…and I can't wait to share this journey with you," shared Khumalo on Instagram. Familiar favourites Byron Louw (RE/MAX), Kim Tresfon and Jonathan Tannous from Pam Golding Property Group return to the show, promising a diverse mix of personalities and strategies that could either charm or clash throughout the season. "Even after two seasons, we are still amazed at the beauty and opulence that Cape Town and its surrounding areas offer," said co-producer Trevor Kaplan. Each episode follows seven of Cape Town's top-tier estate agents as they navigate elite client demands, high-stakes commissions and the ever-changing market dynamics. Viewers can expect jaw-dropping homes mixed with personal stories and intrigues that reflect the unique challenges and rewards of selling high-end real estate. The show promises listings that rival those of million-dollar homes abroad - think ocean views, indulgent wine cellar walk-throughs, infinity pools and private elevators. "Just when you think you've seen it all, season 3 turns up the heat. The properties are spectacular, the commissions are higher, and the agents are hungrier than ever," said co-producer Nico Nel. The locations featured in this season span some of the most desirable neighbourhoods in Cape Town, from Clifton to Constantia. • "Listing Cape Town" will premiere on Wednesday, May 28, at 8pm on BBC Lifestyle (DStv channel 174), with repeats on DStv Catch Up.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store