Latest news with #Seeff
The Citizen
2 days ago
- Business
- The Citizen
Semigration boosts Cape residential rental yields
Semigration to the Cape has been a major boost for the residential rentals market, especially in areas such as Durbanville which offers a great lifestyle, but more affordability, says Daniela de Villiers, Seeff's rentals manager for the Durbanville area. The higher demand has unlocked more opportunities for investors and landlords in the area, offering attractive rental yields of 6%-10% depending on the area and property, she says. Average rental rates in the Durbanville and surrounding area range between R9,000 to R25,000, and for luxury homes, upwards of R30,000 per month. Luxury estate homes go to as much as R51,000 and R60,000 per month for homes rented out by Seeff in the Kanonberg and Clara Anna Fontein estates. Tenants are coming mainly from Gauteng, particularly the Pretoria area. They are drawn to the area due to the central location, reputable schools, and relative affordability compared to other upmarket locations in Cape Town. Durbanville offers easy access to main arterials, and well-maintained, safe neighbourhoods. The country-like lifestyle and proximity to the Durbanville Wine Valley are also a bonus for people moving from upcountry. Both families and young professionals are flocking to the area. Students from nearby medical facilities, and those doing practical rotations at state hospitals in the area are also drawn to the rental market. Anneke Roux, another rental agent with Seeff who operates in the Welgedacht area, says the area is also popular with those who enjoy an active lifestyle as they can safely walk and cycle in the scenic surroundings. The highest demand in Welgedacht is in the R13,000-R20,000 range while yields range from 6-10%. Schools are a big attraction, according to Allison Oosthuizen, another Seeff rental agent. Young professionals are drawn to the good selection of apartments in the area, including those at the Waterfront. Apartments rent out at R9,000-R11,000 per month which is more affordably priced compared to the Cape Town CBD. Townhouses is a popular alternative as they are also well-priced at R14,000-R18,000. Even luxury homes at R41,000-R51,000 offer good value compared to other upper end areas. The opportunity for investors is mostly for properties in the R1.2m to R2.4m price range where they can achieve a rental income of R9,000 to R20,000 per month, providing a rental yield of 5-7%. Gratia van Jaarsveld, another Seeff rental agent, however, cautions that landlords must keep their prices in line with the market or they could risk not attracting a good calibre tenant within a reasonable period. Pet-friendly properties are always sought-after. When investing in a rental property, a good location is vital, but landlords must maintain properties in a good condition to optimise the rental and retain good tenants. The areas of Pinelands and Thornton, closer to the City, report similar trends. Johan Meyer, licensee from Seeff for the areas, says the high demand is due to proximity to UCT, Groote Schuur Hospital, good schools, and access to the airport. Tenants include students, medical staff as well as those working at the Old Mutual offices. Here too, rental properties are in short supply, and landlords can earn yields of 6-10%. There is high demand for neat, modern accommodation such as the new Pineworx development. Apartments are renting out at R9,500-R14,000 while houses range from R20,000. The highest prices achieved by Seeff over the last year include R25,000 for a rental in Victory Avenue, R35,000 in Uitvlugt, and R42,000 in Links Drive. Issued by Gina Meintjes
The Star
3 days ago
- Business
- The Star
SA Reserve Bank cuts repo rate offering relief to consumers
Ashley Lechman | Published 4 hours ago South Africans repaying vehicle, home loans and other debts received some joy on Thursday as the South African Reserve Bank (Sarb) lowered the repurchase rate (repo rate) for the country. Sarb Governor Lesetja Kganyago announced a cut to the repurchase rate (repo rate) by 25 basis points (BPS). This came after the central bank's Monetary Policy Committee (MPC) met this week and voted to decrease the repo rate from 7.50% to 7.25%. This means that the repo rate will decrease from 7.50% to 7.25% and the prime lending rate will decrease from 11.00% to 10.75%. "In the previous MPC statement, we warned of downside risks to our growth forecast. We have now trimmed our GDP projections and currently expect growth of 1.2% this year. The outlook for structural reforms remains positive, but there are also headwinds," Kganyago said. Dr Andrew Golding, the CEO of the Pam Golding Property, said the cut is welcome relief for consumers. Golding said, "The MPC seized the opportunity to give South Africa's economy a much-needed boost in sentiment. Furthermore, with inflation surprising on the downside in recent months and, with a petrol price cut likely next month, although partially offset by the hike in the fuel levy, price pressures are likely to remain subdued. The consumer inflation rate is currently well anchored below the lower limit of the 3%-6% inflation target." Meanwhile, Samuel Seeff, the chairman of the Seeff Property, said the rate cut was welcomed, but more is needed. Seeff said, "This is the fourth rate cut by Sarb since the latter half of last year. The Bank missed a crucial opportunity to provide a more meaningful cut of at least 50bps as a vital boost for the economy, consumers and the property market. The conditions for a robust rate cut are ideal given the remarkably low inflation which, despite the recent benign increase to 2.8% is still comfortably below the SARB's 3-6% target range. Additionally, despite global volatility, the strengthened Rand poses no risk of igniting an inflationary spiral, given the subdued demand-side pressures." "Even with the latest rate cut, the interest rate is still above pre-Covid levels. This continues to erode any benefits from previous rate adjustments and remains an impediment to real economic growth so vitally needed. The high interest rate has done considerable damage to the economy. Consumers are struggling, and while this rate cut will bring much needed relief," Seeff said. As a result of the 25bps rate cut, mortgage repayments will reduce by (Based on a 20-year repayment period at the prime rate): R750 000 bond – from R7,741 to R7,614 – thus saving R127 R900 000 bond – from R9,290 to R9,137 – thus saving R153 R1 000 000 bond – from R10,322 to R10,152 – thus saving R170 R1 500 000 bond – from R15,483 to R15,228 – thus saving R255 R2 000 000 bond – from R20,644 to R20,305 – thus saving R339 R2 500 000 bond – from R25,805 to R25,381 – thus saving R424 R3 000 000 bond – from R30,966 to R30,457 – thus saving R509 R5 000 000 bond – from R51,609 to R50,761 – thus saving R848 'With inflation at historic lows and household budgets still under pressure from slow economic growth, any easing in the interest rate environment is a meaningful win for consumers. Lower borrowing costs translate directly into more affordable monthly repayments, which can help unlock greater activity in the property market,' regional director and CEO of RE/MAX of Southern Africa , Adrian Goslett said. 'For buyers, it may be a good time to explore opportunities while rates are still trending lower. For sellers, improved affordability could mean a larger pool of potential buyers, which could mean a quicker sale and more competitive offers,' Goslett added.
The South African
5 days ago
- Business
- The South African
Buy or rent? Here's what the EXPERTS suggest
With many South Africans weighing up the pros and cons of renting versus buying property, experts say owning your own home remains the smarter long-term financial decision – especially in the current market. According to Samuel Seeff, chairman of the Seeff Property Group, purchasing a property allows individuals to build wealth and security by investing in an appreciating asset, rather than paying rent with no return. 'Each mortgage payment contributes to building equity in your home,' says Seeff. 'In contrast, rent is simply an expense with no long-term benefit.' As the outstanding loan decreases and property values increase over time, homeowners gain a growing asset that can be leveraged to achieve future financial goals. This makes buying a home both a savings mechanism and a long-term investment. RELATED | Vacant land in Clifton sells for R170 million Beyond the financial advantages, Seeff highlights the stability of homeownership. Owners are shielded from uncertainties such as rent hikes, non-renewal of leases, or landlords selling the property. 'You also gain the flexibility to renovate or upgrade your home to suit your lifestyle – something renters often can't do,' he adds. 'This not only improves your quality of life but also enhances the value of your property.' Property remains a solid asset class and a reliable hedge against inflation, Seeff explains. While rental prices tend to rise year on year, home loan repayments can remain relatively stable over time – subject to interest rate fluctuations. By making extra payments, using bonuses, or investing spare funds into a home loan, homeowners can reduce their debt faster or build equity more quickly. A major advantage in South Africa is the accessibility of home loans. Many banks continue to offer 100% financing, sometimes even including transaction costs, making it easier for first-time buyers to enter the market. In fact, a recent survey revealed that 46.5% of home loans granted in recent months were for first-time buyers, highlighting ongoing demand and opportunity in the sector. Seeff encourages financially secure individuals to act now, noting that property prices are continuing to appreciate. 'The longer you wait, the more you're likely to pay,' he warns. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The Citizen
20-05-2025
- Business
- The Citizen
Rising demand for holiday apartments in Garden Route towns
While freestanding housing stock dominates in the towns across the Garden Route, there is growing demand for apartments, with some new developments finally coming to market, says Gail Rimbault, licensee for Seeff Knysna. Sectional title complexes can provide more options for buyers and investors, and they are generally also more accessibly priced, she says. They are also sought-after for the convenience of lock-up-and-go with minimal maintenance as there is usually a Body Corporate which manages the apartment complex. For holiday homes and even those who are downscaling to the coast, this is the ideal solution. While buyers include retirees and holiday home buyers, there is also high demand for rentals, both long and short-term holiday needs in these towns. She says many buyers also combine their holiday purchase with the option of renting it out when not needed and benefiting from a lucrative rental return on their investment. A key benefit of investing in the Garden Route holiday towns is that they are hugely popular holiday hotspots, and experience high holiday traffic during the school closure periods, over weekends, and especially over the summer season. Lightstone data shows that sectional title as a category of all housing stock in most Garden Route towns is still quite low with Mossel Bay (15%) and Plettenberg Bay (15%) the highest, followed by Knysna (10%), and George (6%). It also shows that most apartments tend to sell for over R2m with some exceptions. Sectional Title Housing Stock on the Garden Route Town Sectional Title as % of Housing Stock Ave ST Price Ave Lux ST Price Mossel Bay 15% R2m R3.6m-R3.8m Plettenberg Bay 15% R2.9m R5m Knysna 10% R1.5m-R2m R4m George 6% R1.6m R3.9m Source: Seeff/Lightstone Notably, while only around 10% of Knysna's stock is sectional title, it represents about 20% of all sales activity over the last year, indicating the high demand for compact units in the town. Compact units such as apartments are increasingly popular both for own use as well as holiday rentals, including Airbnb. The high demand has created opportunities for developers to come into the market with new offerings such as the Seahorse development, says Gail. It offers 35 new units with one or two bedrooms, braai balconies, secure parking, as well as Wi-Fi and inverters. The complex also offers a heated swimming pool and sun deck. Prices range from R1.75m (one bed), and R2.325m (two bedrooms). There's also no transfer duty payable, says Gail, adding that these are a great addition to this popular holiday town. The development is also just a short walk from the Knysna Lagoon and Waterfront area. These apartments appeal to a wide range of buyers, from those looking to retire or downscale permanently to the Garden Route, or as holiday or Airbnb investments for lucrative short or long-term rental returns. To facilitate hassle-free Airbnb income, Perch Short Stays will offer a complete turnkey service for investors, ranging from furnishing and marketing to management and maintenance. Issued by Gina Meintjes
The Citizen
16-05-2025
- Business
- The Citizen
Unemployment, low growth crises demand bold action
Given the alarming increase in unemployment announced this week, Samuel Seeff, chairperson of the Seeff Property Group has issued a strong call to the South African Reserve Bank's Monetary Policy Committee (MPC) to implement a significant interest rate cut of at least 50bps at its upcoming meeting. The latest unemployment figures paint a stark reality as another 237,000 South Africans lost their jobs in the first quarter with unemployment now at 32.9% (up from 31.9%). Some 8.2 million people are now unemployed, and on the expanded definition it stands at 12.7 million (43.1%). This is further exacerbated by the IMF and Moody's recently downgrading South Africa's economic growth outlook for the year to around 1% at best, after growing at just 0.6% last year. The continued economic stagnation and rising unemployment is simply untenable, says Seeff. The risks to the stability of South Africa far outweigh the Reserve Bank's overly cautious approach to inflation concerns, especially since inflation has trended around the bottom of the Reserve Bank's target range since late last year, falling to just 2.7% for March. This is below the target range. The interest rate is still 100-basis points higher compared to the pre-Covid rate while the economy is stuttering and shedding jobs at an alarming rate. It should be noted too that the gap between the interest rate and inflation in South Africa is among the highest in the world, stifling growth. Seeff says the prolonged period of high interest rates has demonstrably hampered economic growth and placed significant strain on the economy and property market. The recent marginal rate cuts have now proven insufficient to stimulate meaningful recovery within the property market with FNB recently reporting that sales volumes are still below pre-pandemic levels. We have recently seen the Bank of England and the European Central Banks cut their rates by 25bps. While the US Fed kept its rates unchanged, that was expected given the impact of the US-China trade war. On this front too, progress has been made with recent meetings between the US and China and a temporary tariff relief deal. That means the Bank's primary justification for maintaining high interest rates have now diminished, says Seeff. Inflation is below the target range, the global economy is settling, VAT has been scrapped, and after some volatility, the Rand has stabilised. There is therefore no reason for the Bank not to step in with a meaningful rate cut of at least 50bps. South Africa can no longer wait, the time for action is now. Issued by Gina Meintjes
