Latest news with #Goslett
The Citizen
4 days ago
- Business
- The Citizen
Why winter is a hot time to buy property
Contrary to popular belief, the Winter months are not a dead zone in the South African real estate market. In fact, data compiled by REMAX of Southern Africa dispels the myth that property sales go quiet during the colder season. According to internal national sales figures for REMAX Southern Africa, June, July, and August consistently reflect slightly higher transaction volumes throughout the year. This surprising trend illustrates that Winter offers fertile ground for property transactions, challenging the notion that warmer months are inherently better for buying and selling real estate. 'While our stats pick up from June, our registered sales figures tend to peak in September and November and then drop off in December and January,' says Adrian Goslett, regional director and CEO of REMAX Southern Africa. But these peaks don't necessarily indicate when buyers are most active – they reflect when sales are officially registered. In South Africa, it typically takes up to three months for a property sale to move from the point of offer to full registration in the Deeds Office. This means that homes registered in September and November were often secured by buyers during the Winter months of June, July, and August. 'When you account for the time lag between sale and registration, it becomes clear that Winter is when many buyers are actively making offers,' Goslett explains. While sales figures appear to dip in December and January, this is also easily explained by external factors. These months coincide with South Africa's peak holiday season, during which many buyers and sellers are on vacation, and the Deeds Office closes for a period in December, creating natural delays in the registration process. 'It's not necessarily that the market goes quiet—it's that administrative processes slow down over this period,' says Goslett. 'Buyers and sellers still transact, but you'll only see those deals finalised and registered in the months that follow.' According to Goslett, understanding when the property market is most active is essential because it allows buyers, sellers, and real estate professionals to make smarter, more strategic decisions. 'For buyers, knowing the peak periods helps them avoid fierce competition and potentially negotiate better deals during quieter months. Sellers, on the other hand, can time their listings to align with periods of heightened buyer activity,' he notes. With the winter months fast approaching, South African sellers are encouraged to shed the outdated view of seasonal lulls. Winter might feel cold; but in property, it's heating up. 'Ultimately, seasonal trends can influence pricing, speed of sale, and the overall success of a property transaction. But each suburb can have its own unique trends. Speak to your local real estate professional for some insights into what's happening in your specific area and how to best position yourself in the current market conditions,' Goslett concludes. Issued by: Kayla Ferguson
The Citizen
29-05-2025
- Business
- 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
IOL News
21-05-2025
- Business
- IOL News
Impact of rising fuel levies on developers: increased input costs and tighter margins ahead
Minister of Finance Enoch Godongwana, proposed a fuel tax increase, which will go towards the shortfall left by the cancelled VAT hike on Wednesday. Image: Phando Jikelo/ Parliament of SA Higher fuel levies and reduced revenue projections could translate into increased input costs, tighter margins for developers, and slower project rollouts, particularly in the affordable housing space. Dr Meshel Muzuva, the academic programme leader at the Management College of Southern Africa (MANCOSA) School of Business Excellence, said that the fact that baseline departmental budgets and critical infrastructure spending are largely protected, offers some optimism. She said that public-private development partnerships could still thrive, especially in housing and urban regeneration, if execution stays on track. 'My advice to property stakeholders: Stay agile. Rethink development timelines and cost structures while closely monitoring inflation and interest rate trends. "Opportunities will exist, especially where the state seeks to stimulate economic growth through infrastructure, but capitalising on these will require a sharper strategy and stronger collaboration with government planning initiatives,' Muzuva said. Adrian Goslett, CEO of RE/MAX of Southern Africa and chairman of the Real Estate Business Owners of South Africa (REBOSA), said South Africa's Budget 3.0, tabled this week following months of political negotiation and fiscal reworking, brings with it a blend of relief, realism, and renewed responsibility. 'While I welcome the fact that we avoided a VAT increase, this budget does signal some underlying challenges that could temper market momentum. One of the most sobering updates in this re-tabled budget is the revised GDP forecast of just 1.4% for 2025, down from the earlier projection of 1.9%. "This weakened outlook inevitably affects consumer confidence and employment prospects, two essential drivers of real estate demand,' Goslett said. He said another downside is the proposed fuel tax increases, which will go towards the shortfall left by the cancelled VAT hike. 'Although this measure is more targeted than a blanket VAT increase, it still filters through to household budgets. Rising fuel costs increase the cost of transport, food, and services, all of which erode disposable income. "This means less room in the budget for mortgage payments, maintenance, or savings for a deposit and/or transfer costs,' Goslett said. 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. 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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. Next Stay Close ✕ Apart from these factors, Goslett is also concerned about the scaling down of modernisation funds for Home Affairs. 'This could have very real implications for the property market. Home Affairs plays a pivotal role in property transactions. Delays or inefficiencies in this department can slow down transactions, frustrate cross-border investment, and erode confidence in the ease of doing business in South Africa. Modernising Home Affairs is not just a tech upgrade, it's a vital component of making our property and financial systems more agile and trustworthy,' he noted. Despite these concerns, Goslett wants to acknowledge the effort made by the National Treasury to present a measured and politically workable budget. 'The property sector thrives on policy certainty, consumer confidence, and economic momentum. Budget 3.0 offers some of that – but the warning signs in the macroeconomic data remind us that we're not out of the woods yet,' he stated. Muzuva said Budget 3.0 presents a more measured and politically aligned fiscal framework, especially after the VAT hike proposals in previous versions were withdrawn. She said while Finance Minister Enoch Godongwana reassured the public that this is 'not an austerity budget,' the message is clear: we are operating in a tight fiscal space. 'The upward revision of the debt-to-GDP ratio (projected at 77.4% in 2025/26, the highest since 1994) and the fuel levy increases (16c on petrol, 15c on diesel) highlight the need for careful prioritisation, even as the government aims to sustain investment in critical services.' Dr Andrew Golding, chief executive of the Pam Golding Property Group, said the welcome commitments made in the Budget Speech included growing the economy-a key element of job creation, accelerating infrastructure investment and facilitating greater private sector participation in public infrastructure, tackling corruption, and eradicating wasteful and inefficient expenditure while investing in our frontline services-including free basic services for poor households. He said, much to the relief of consumers, that as recently announced, the proposed VAT increase has been removed in the revised Budget. 'This is also encouraging for home buyers acquiring new-build units in property developments which incorporate VAT in the purchase price, as well as first-time and other home buyers embarking on property acquisitions, as there are a number of VAT-inclusive services associated with the purchase of a home,' Golding said. He said the Budget has positively retained the 10% increase in the threshold for transfer duties, which means that properties up to R1.21 million are exempt, which is meaningful for first-time buyers, as the average price paid by a first-time buyer from January to April 2025 was R1.245 million, according to ooba Home Loans. 'Regrettably, the fuel price levy increases in June by 16 cents per litre for petrol and 15 cents for diesel; however, on the plus side, this is hopefully offset by indications that fuel prices will decrease by an estimated 23c per litre next month (June). "It is also unfortunate that allowance has not been made for tax bracket creep to allow for inflation, as in effect, this results in higher tax being paid by individuals who are pushed into higher tax brackets.' Independent Media Property
The Citizen
21-05-2025
- Business
- The Citizen
Property market's response to budget speech 3.0
'While I welcome the fact that we avoided a VAT increase, this budget does signal some underlying challenges that could temper market momentum. One of the most sobering updates in this re-tabled budget is the revised GDP forecast of just 1.4% for 2025, down from the earlier projection of 1.9%. This weakened outlook inevitably affects consumer confidence and employment prospects – two essential drivers of real estate demand,' he notes. Another downside is the proposed fuel tax increases which will go towards the shortfall left by the cancelled VAT hike. 'Although this measure is more targeted than a blanket VAT increase, it still filters through to household budgets. Rising fuel costs increase the cost of transport, food, and services – all of which erode disposable income. This means less room in the budget for mortgage payments, maintenance, or savings for a deposit and / or transfer costs,' says Goslett. Apart from these factors, Goslett is also concerned about the scaling down of modernization funds for Home Affairs. 'This could have very real implications for the property market. Home Affairs plays a pivotal role in property transactions. Delays or inefficiencies in this department can slow down transactions, frustrate cross-border investment, and erode confidence in the ease of doing business in South Africa. Modernizing Home Affairs is not just a tech upgrade – it's a vital component of making our property and financial systems more agile and trustworthy,' he notes. Despite these concerns, Goslett wants to acknowledge the effort made by National Treasury to present a measured and politically workable budget. 'The property sector thrives on policy certainty, consumer confidence, and economic momentum. Budget 3.0 offers some of that – but the warning signs in the macroeconomic data remind us that we're not out of the woods yet,' he states. 'For our industry to flourish, we need to go beyond avoiding harm. We must create the conditions that enable more South Africans to become homeowners. That means continued infrastructure investment, service delivery improvements, financial sector confidence, and administrative efficiency. This new budget offers some hope in this regard, but I will be watching closely over the coming months to see how these fiscal plans are implemented,' says Goslett. Looking beyond our borders, Goslett also remains hopeful that the upcoming meeting between President Cyril Ramaphosa and U.S. President Donald Trump will bear positive fruit. 'Strengthening diplomatic and economic ties with major global players is crucial for positioning South Africa on a better growth trajectory. If this engagement leads to enhanced trade relations, investment flows, or renewed confidence in our economy, it could serve as a much-needed boost — not only to the broader economic outlook but also to sectors like real estate that are so closely tied to investor sentiment and stability,' he concludes. Issued by: Kayla Ferguson
IOL News
19-05-2025
- Business
- IOL News
House prices rise slightly despite declining property sales in first quarter of 2025
Ilitha Park in Khayelitsha experienced a rise in property prices as demand for properties in the area surge. Image: Leon Lestrade While the volume of property sales decreased overall in the first quarter of this year, house prices still strengthened slightly. This is according to the REMAX National Housing Report Q1 2025 released on Monday which showed that the first quarter of 2025 produced a mixed bag of results. Referring to national deeds office information, in terms of units sold, the South African market was said to be down by roughly 8%. Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa, said this is not necessarily cause for concern and can be attributed to a few factors. 'Firstly, the timing of the annual National Budget Speech often introduces a degree of uncertainty into the market, as potential buyers adopt a cautious 'wait and see' approach in anticipation of changes to taxes, subsidies, or economic policy. "In Q1 2025, this effect was compounded by ongoing geopolitical tensions and global economic instability, which influenced inflation and overall consumer confidence,' Goslett said. Additionally, Goslett highlighted that seasonal trends have historically contributed to lower transaction volumes in the first quarter. 'January is a shorter working month due to the holiday period, and December typically includes a closure of the Deeds Office, which causes a backlog in property registrations and delays in processing. "These cyclical administrative slowdowns and reduced operational days mean that Q1 is often the quietest quarter for property transfers,' he said. Despite this, the RE/MAX SA network's registered sales grew by 6.93% in Q1 2025, while the brand's reported sales grew by a staggering 10.51%. The average days until marked as sold on for Q1 2025 was just 17.1 days. 'These results demonstrate the strength of our brand and the hard work of our network, especially in a market that is showing signs of overall decline,' Goslett said. Looking at the provincial and suburb trends, the top 5 most searched suburbs on were Parklands (Western Cape), Westville (KwaZulu-Natal), Bluff(KZN), Summerstrand (Eastern Cape) and Table View (WC). The regional director and CEO said house price growth in the Western Cape has been among the most robust in the country over recent years, driven by strong demand, perceived lifestyle advantages, and relatively stable municipal governance. 'However, this sustained price escalation appears to be having a dampening effect on demand,' Goslett said. For the first time in a while, the Western Cape no longer dominates the entire Top 5 list of most searched suburbs on with only Parklands and Table View making the cut. Suburbs in KwaZulu-Natal (Westville and Bluff) and the Eastern Cape (Summerstrand) have now edged into the spotlight, suggesting that prospective buyers may be broadening their searches to more affordable coastal alternatives. This shift was said to likely signal a price resistance threshold being reached in the Western Cape, where affordability concerns are starting to outweigh the province's lifestyle appeal for many middle-class buyers. 'As price sensitivity increases, buyers are turning to regions where they can still enjoy coastal living without the premium price tag, potentially redistributing demand more evenly across provinces,' says Goslett. There are also signs that some might even make the move back to Gauteng. The province's proportional contribution to the RE/MAX SA brand increased from 37% of all units sold in Q1 2024 to 39% of all units sold in Q1 2025. 'From an investment perspective, Gauteng remains South Africa's economic powerhouse, generating the highest provincial GDP. Ongoing infrastructure projects and urban regeneration efforts in key areas, such as Sandton, Rosebank, and parts of Pretoria, signal long-term capital growth prospects. "For savvy investors, Gauteng presents an opportunity to purchase properties at relatively lower entry points, while still benefiting from high rental demand and gradual capital appreciation, particularly as more buyers shift their focus away from overheated markets in the coastal provinces,' Goslett said. He said that while seasonal lulls and macroeconomic uncertainty dampened overall transaction volumes, the resilience of RE/MAX SA's network, coupled with regional shifts in buyer interest, signalled that opportunity still abounds for those who remain informed and proactive. In the latest FNB Property Market Report, Siphamandla Mkhwanazi, FNB senior economist, said the recent dip in consumer confidence due to heightened global and domestic uncertainty is likely to disproportionately impact the affluent segments, potentially leading to slower sales and price stagnation. He said that in the lower-priced segments, potential interest rate cuts by the South African Reserve Bank (SARB) and a potential 10% increase in the transfer duty threshold could stimulate demand. These factors suggest a potential shift in demand towards more affordable housing options amid increased uncertainty, he said. Independent Media Property
