Latest news with #TysonProperties
IOL News
4 days ago
- Business
- IOL News
Why South Africa's high interest rates are stifling private sector investment
South Africa's persistently high interest rates, the lingering effects of the post Covid-19 recovery, and muted domestic growth in South Africa continue to stifle the local real estate sector. Image: Henk Kruger African News Agency (ANA) The real interest rate remains far too high to spur meaningful capital investment by South Africa's private sector, despite the recent interest rate cut by the South African Reserve Bank (SARB). The bank's Monetary Policy Committee reduced the repo rate by 25 basis points last week. While the news brought some welcome relief to property owners, it was another disappointment for the country's real economy, said Renier Kriek, the managing director at Sentinel Homes. 'The SARB has consistently preached that their policy bible contains only one chapter, titled 'inflation targeting', which requires sticking to within their 3–6% inflation target band and anchoring inflation expectations at the 4.5% midpoint. 'Their messaging has consistently and unfailingly pledged that their mandate is the only consideration that guides their decisions,' Kriek said. South Africa is unfortunate not to have a stable interest rate environment - a scenario that is likely to continue for at least the next five years, according to Tyson Properties. 'We spent the last couple of years straight after Covid seeing record lows and a little mini property boom. When those rates began to increase, people found that they could no longer afford the houses they had bought. We struggled to sell houses because expectations were too high. "Interest rates began to level off, and the market picked up again. Then along came Trump and markets became nervous again,' said Tyson Properties CEO, Chris Tyson. 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 ✕ Kriek said that despite inflation remaining low over an extended period, currently sitting at 2.8%, leaving the opportunity for a softening of monetary policy wide open, the SARB had not budged. Kriek asked then why the SARB has stubbornly refused to reduce the interest rate accordingly, even as inflation hovers at or below the bottom of their target band? Despite preaching vague and opaque 'risks to the upside' to justify their hawkishness in recent years, he said it is clear that the SARB has been disingenuous. He said this was made plain for the first time last week with the interest rate cut, but it has long been evident that there is a secret driver of their decisions. 'It was clear with the announcement that the SARB's policy bible has contained a new chapter, which is their anticipated future mandate, and they have already been guided by that expanded gospel, despite the existence of the chapter having been secret and further despite the content of the chapter not having been agreed to with Treasury and other stakeholders,' Kriek said. The argument advanced by the Monetary Policy Committee, by way of Governor Lesetja Kganyago's statement and answers to questions during the press conference, is that the MPC wishes to deliver a decisive blow to inflation in the long term, transforming the SA economy to a low(er) inflation economy. This will also mean lower interest rates for longer in future, per the MPC's reasoning, since lower inflation economies generally tend to have lower inflation rates. 'However, the question is, why do we want to do this now?' Kriek asked. 'Moving to a lower inflation target will likely have long-term positive consequences for the SA economy, but it will also involve near-dated discomfort. Essentially, the MPC is promising short-term pain for long-term gain.' 'The SA economy is a very frail patient at the moment, and keeping interest rates at current high levels in order to achieve longer-term outcomes is a risky gambit. "We should at least be asking, and this is as much about political calculation as economic policy, whether we should not attempt monetary stimulus first, getting the economy out of its bandages, and attempt the MPC's incisive reforms once the patient is back on its feet. 'The property sector has shown signs of broad-based recovery, with price lines across all the metros trending upwards in Stats SA's latest Residential Property Price Index," he said. The cumulative 75 bps cuts, with a further cut at last week's meeting, have already had the effect of bringing previously pent-up demand spilling into the residential property market. However, while these are green shoots, the market is still under significant strain. According to National Credit Regulator(NCR) statistics, home loan delinquency is up by 35% in the last three years, signifying the tremendous pressure households are experiencing related to their finances.
IOL News
26-05-2025
- Business
- 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.
Zawya
01-05-2025
- Business
- Zawya
Young South Africans prefer renting over buying as the rental market soars
Right now, the rental market is heating up in major centres, with young South Africans no longer measuring their success in terms of property-title deeds but rather in steps up the social and corporate ladders. Like young professionals the world over, new comers to real estate are looking for convenience, amenities and flexibility, rather than first-time home ownership. As a result, demand for rentals is growing and the market is at its busiest since 2018, according to Murray Haywood, Tyson Properties' director for Gauteng and KwaZulu-Natal and national group rental manager. 'We are seeing more and more people choosing to rent and not buy. The factors influencing this extend beyond the daunting costs of running a house or the consistent expense of maintenance. The younger generation wants to be fluid and follow careers rather than be bogged down by bricks and mortar. They put spare funds into financial investments which are more liquid,' he says. Unsurprisingly, Gauteng, South Africa's economic hub and repository of jobs in corporates, finance and technology, is the most vibrant rental market. Suburbs such as Sandton and Rosebank with trendy apartments, proximity to top schools, shopping centres and good transport links are the major drawcards. 'The 'rental' asset class is growing nationally. Agencies like Tyson Properties, are making a concerted effort to set up rental books and establish rental portfolios within their franchise networks. "We use credible entities establishing easy and up to date lease agreements, do thorough background credit checks and are now consistently training our agents so that they know what to look for when renting a property and what questions to ask,' Haywood continues. Although popular for different reasons - natural beauty, sophisticated lifestyle, tourism and expanding tech and creative sectors – Cape Town and Gauteng are both in high demand for rental housing. Tyson Properties' rental manager in Cape Town, Southern Suburbs, Stephen Adamo, notes that areas such as Bishopscourt, Constantia and Newlands (all southern suburbs) are drawing attention from renters. 'The advantages of renting in these areas vary. Often, we have clients who are moving from upcountry or relocating to South Africa for the first time from another country. Renting allows these clients to understand the areas better before settling down and buying a property. 'For those looking to rent larger properties, renting a R15m plus property tends to work out less expensive than purchasing. Here, rental allows more flexibility, especially if you need to be closer to educational institutions, work, beaches or your individual lifestyle choices,' he says. Even among locals, he points out that the rental market in Cape Town and the Southern Suburbs is also growing for a myriad reasons – including access to basic services such as electricity, water and transport, security, privacy and proximity to top schools and places of work. 'There are also still a few properties in the Southern Suburbs that provide clients with an abundance of space without compromising on location or accessibility. The market is growing year on year with an 8 to 10% escalation in rentals per year,' Adamo adds. Those on the lookout for properties to rent can expect increased demand for high-end apartments in city centres as well as very competitive rental prices in desirable areas. Decisions need to be made quickly due to high demand and having the right paperwork on hand will get you over the line ahead of others. 10 tips for renters Do your research – Understand the rental market in your chosen area as well as each particular neighbourhood. Make sure that you know average pricing and what is expected for extra amenities and services. Prep the paperwork – Get pre-approved by supplying the agent with the necessary supporting documentation: payslips, ID, proof of residence and bank statements which are used in the vetting process. Check the lease agreement and make sure that all terms are clear before signing. Inspect the property – Identify maintenance issues and document them ahead of signing up or moving in. Complete a move in inspection report or 'snag list' of items that need to be rectified by the landlord. If repairs are unlikely, document any issues so that, when exiting, you are not liable for damages. Know your rights and responsibilities – Familiarise yourself with the Rental Housing Act. Affordability is key, so know your budget – Renting a property not only includes the rental itself but also running costs, utilities, deposits and other fees. Make sure you can meet upfront costs – Your deposit, equivalent to a month's rental, needs to be paid upfront. You may also need to cover application and administration fees, as well as moving costs. Keep everything in writing – Keep records of agreements with the landlord as well as all correspondence. Understand maintenance responsibilities – Know what falls on you versus what the landlord is responsible for. Be a good tenant – Pay your rent on time and follow building rules. Have a backup plan – In case of unexpected expenses or job changes. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
