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SOUTH AFRICA’S INDUSTRIAL SECTOR:
SHOWING RESILIENCE IN
TOUGH CONDITIONS
ESTATE AGENCY ECONOMY:
IS IT TIME TO DIVERSIFY OR FACE DWINDLING PROFITS?
SEP TEMBER/OCTOBER 2014
STOP CRIMINALS IN THEIR TRACKS
INDUSTRY-RELATED CRIMINAL ACTIVITY GETS INVESTIGATED
I REFUSE TO SELL
YOUR HOME! ESTATE AGENT CHALLENGES
INTRODUCING PP HAPPENINGS -
NEWS AND POLL RESULTS
IM A GINE TH E P O SSI BILITI ES
h o m e s | d É c o r | i n v e s t m e n t | i n t e r n at i o n a l p r o p e r t y | d e s i g n | t r e n d s
pam golding properties’ prestigious new lifestyle magazine is now available online.
Download the app on your ipad or tablet by searching ‘Imagine Mag’ OR view the magazine online with any device by scanning the QR code.
24136_Property Professional FA.indd 1 2014/08/15 10:01 AM
KORBITEC PROP 24With world-class technology,
competitive prices, free access to
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Property24 is home to the very
best value.
Where Real Value Lives
www.property24.com
Competitive pricing model
World -class technology
Increased brand exposure
Lead GuaranteeMore leads than any other portal
WIN A HOMEPrivate PropertySABC 3
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AND YOU COULD SHARE THE LIMELIGHT.We’re hosting an ALL-NEW PRIME-TIME PROPERTY SHOW on SABC3 from 21 August. One lucky viewer will win a
designer home worth over R6-million – and your top properties could be featured on the show. Term’s & Condition’s apply.
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PRODUCTIONDIRECTORCHANNELDATE TIME
Professionals across all industries face certain challenges in their daily work environment.
While interacting with people is a core job function, the challenge lies in the fact that people
are diverse and each individual brings their own complications to the party.
In the July/August issue of Property Professional, we gleaned some insight from estate
agencies into the three top challenges that the modern agent faces. None of them were really
people related; however, the social media platform of Facebook inspired a story along
a similar vein for this issue: The challenges faced by agents when dealing with clients who
are disrespectful, difficult and/or just plain rude.
Dealing with clients who overprice their homes, the public’s negative perception of estate
agents in general, negotiating commission and keeping all the concerned parties happy
throughout the transaction process are just some of the points touched on in this article.
Crime is another hot topic in our September/October issue; again, a story inspired by social
media networks. Agents banding together to stop the devious pursuits of ‘Steve the Shopper’
is a case in point, demonstrating how agents working together and crime prevention social
media initiatives can be of help.
Speaking of media, property listing portals are very much an integral part of an estate
agent’s marketing arsenal. Property Professional takes a look at South Africa’s most popular
options in this issue.
While by all accounts it seems the market has stabilised to some degree, consumers and
businesses are still feeling a bit of a financial pinch. It’s time to diversify or face dwindling
profits, and we give you some great pointers in our feature on page 18.
In this issue, we also take a look at industrial property trends, the impact of the construction
sector and infrastructure development on commercial property as well as where the housing
gaps in our current market space are.
We have all the regular news, stats, new and top agent profiles and gadget reviews between
these pages, and hope you enjoy paging through this edition.
Remember to subscribe to our electronic newsletter, visit our website,
www.propertyprofessional.co.za, like us on social media and share your thoughts,
views and news with us.
PUBLISHED BY PA MEDIA, THE CREATIVE GROUP
6 Beach Road, Old Castle Brewery
Woodstock 7925
021 447 7130
www.facebook.com/PropertyProfessional
https://twitter.com/Property_Prof
PA MEDIA CEO
Shaun Minnie
083 629 6081
EDITOR
Michelle Funke
011 462 8959
ADVERTISING SALES
Sarah Steadman
082 334 4367
ADVERTISING PRODUCTION & SUBSCRIPTIONS
Nikki Barnard
ACCOUNTS & FINANCE
Nicolette Lubbe 011 476 6293
PRINTING
Paarl Media
Disclaimer: The publisher of this magazine gives no warranties, guarantees or assurances and makes no representation regarding any goods or services advertised within this edition. © Copyright Property Advertising Joint Venture. All rights reserved. No portion of this publication may be reproduced in any form without prior written consent from the publisher. The publishers are not responsible for any unsolicited material.
EDITOR’S NOTE
MICHELLE FUNKE [email protected]
EDITOR’S NOTE
00452 BETTERBOND - REWARDS APP - EAR PIECES RP.indd 1 2014/08/13 2:18 PM
CONTENTS
CONTENTS04 PROPERTY PROFESSIONAL HAPPENINGS
06 REBOSA PROPERTY PORTALS 10 INDUSTRY NEWS 14 ESTATE AGENT CHALLENGES 18 TIME TO DIVERSIFY
42 WHERE ARE THE HOUSING GAPS IN SOUTH AFRICA? 46 NEW AGENTS ON THE BLOCK
50 TOP PERFORMING AGENTS 56 TECH TOOLKIT
58 DEVELOPMENT UPDATE
64 WORD ON THE STREET
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22
42
22 INDUSTRIAL PROPERTY RESILIENCE
26 MARKET SHARE
28 THE POWER OF PROPERTY PORTALS
34 STOP CRIMINALS IN THEIR TRACKS
38 FINANCE & FIGURES 40 DEVELOPMENT IMPACTS THE REAL ESTATE INDUSTRY
Top Somerset West agency joins Chas Everitt International...
CHOOSE A BRAND THAT GIVES YOU OPTIONSCALL GERHARD KOTZÈ • 011 801 2500 • 082 447 5698 • [email protected]
WWW.CHASEVERITT.CO.ZA WHEREEVERITT IS - ITS SOLD
Something GREATJust Got Better!
Leading Somerset West property specialist Rose McFall has decided to convert her multi-million rand agency to the Chas Everitt Internationalbrand with immediate effect.
McFall, who has carved out a substantial market share in Somerset West as an independent, says she chose to join Chas Everitt International after receiving franchise offers from several property groups. She has managed her own agency for the past nine years after learning the ropes in the local office of another national group, where she consistently achieved top agentstatus.
"I started receiving offers from various franchise groups after I was named top agent for the Western Cape in 2005 but - against all advice - I decided to open an independent estate agency. And I have had a wonderful run, starting with just two agents and building up the business to the current staff complement of 19, as well as buying my own office building. I have a highly professional team of agents and for them to achieve sales worth atotal of R10m on any given day is not uncommon."
Rose McFall says, she was swayed by a renewed offer from Chas Everitt International recently and that her decision was based on the wider exposure that clients’ properties will receive as part of the group, which has outstanding marketing platforms as well as an excellent referral system that will boost buyer enquiries from all over the world.“Being part of a national group will also open doors to opportunities such as new development projects that we have recently added to our portfolio and cannow showcase worldwide."
She adds that the Chas Everitt International emphasis on personal service was also a big factor in her decision. "Although it is a group with a formida-ble presence in the local as well as international market, people don't get lost in a corporate maze. It is a perfect fit with my own family-oriented approach to business - my staff and I start every workday in a familyatmosphere by having breakfast together, a tradition we will uphold."
McFall will celebrate her switch to Chas Everitt International on 1 Septem-ber, nine years to the day she opened her independent office. "We have always celebrated Spring Day as a reminder of our first steps as an independent agency but this year we will celebrate it as an especially brightnew beginning."
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Prop Profes AUG revised.ai 1 2014/08/14 8:05 AM
PROPERTY PROFESSIONAL HAPPENINGS
Realtors International, a coalition
of well-established local estate
agencies mainly in the Western
Cape and Cape Town area, recently
held its annual Award Ceremony.
The event was not only to award the
real estate agents who exceeded
their sales targets and contributed
to the group’s success, but also to
thank and treat all the support and
administrative staff. The function took
place at Eureka, Durbanville.
1. Rhys Dyer, Careen Mckinon, Marius Crook2. Manja Kritzinger, Hetta van Niekerk, Charlene Serfontein, Nicolene le Roux, Arnold Bester, Careen Liebenberg, Tanya Dennet, Brenda Kirsten, Ashleigh Fraser3. Back, Andre Kritzinger,Philip Crous, Leendert Hols, Jan Fourie, Rob Norval, Jacques Botha, Front, Henry Hall, Jenny Scgael, Manja Kritzinger, Leon Fourie
Realtors International’s annual Award Ceremony
WE ASKED :
POLL RESULTS Be sure to participate in our next poll
on our website or through our social
media channels:
Which property advertising medium
works most effectively i.e. gives the
most leads?
A Online property portals
B Newspaper adverts
C Magazine adverts in
property-specific titles
D Direct marketing to your database
of respondents think the bill is good for
the industry
100%A s a pr ope r t y p r of e s s ional , do you th ink th e pr opose d Rental Hou sing A m e nd m ent Bi l l i s good f or th e indu st r y?
We recently conducted an opinion poll on our
website and through our social media channels.
The new office is situated at 26 Plantation Road, The Gardens, Norwood.
Built in 1961, the building was originally used as a primary residence and
has now been renovated for office use. The new office has been designed to
meet the business needs, enabling increasingly efficient operations.
Alan Levy Attorneys Notaries Conveyancers moved to new premises on 26 June 2014
1 2
3
Page 8: PROPERT Y PROFESSIONAL HAPPENINGS
CHOOSE A BRAND THAT GIVES YOU OPTIONS CALL GERHARD KOTZÉ
011 801 2500 • 082 447 5698 [email protected]
STRIKING THE PERFECT BALANCE
Looking to take your existing agency to the next level of growth and production? Convert to Chas Everitt and experience the power of having cutting edge technology, advanced on-line marketing strategies and top quality training.
Are you looking to take your career to the next level without taking on overheads? The Notebook model allows you to run your own business under our banner with minimal capital outlay whilst enjoying the benefits of our powerful brand offering.
RENTALS FRANCHISE
Experience our state-of-the-art
EverRent© Trust and Rental Management Software
Suite. Our business model allows you to grow your rental portfolio whilst creating more efficiencies
and optimising resources to be more profitable.
Tired of being treated as just
another number and not an individual? Join
the Chas Everitt family and let us show you why agents love
working under our banner. Our system and training were
developed around agent needs.
NOTEBOOK©LICENSE PROPERTY CONSULTANT
SALES FRANCHISE
Business Growth
Strong SA Brand
National Exposure
Family Values
CRM
Top Technology
Excellent Training
Quality Marketing
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Property pro advert-August.ai 1 2014/08/15 5:27 PM
PROPERTY PORTALS IN SOUTH AFRICA
Could we be heading the same way as overseas portals?
The UK and Australia don’t have any industry controlled portals. Instead
their portals are owned by larger companies or are listed entities, and,
as such, the sole purpose of these portals is profit. But this profit comes
at the expense of the real estate agents who have no choice but to pay
high fees to list their property or risk losing out to competitors. Yet in the
USA and New Zealand, industry controlled portals have shown that they
are able to keep fees in check. The question that arises from this is where
does South Africa stand? Will we ultimately be faced with a situation
similar to the UK and Australia where two dominant portals are able to
set the fees and agents will have no choice but to pay?
Page 10: PROPERT Y PORTALS IN SA
THE BATTLE OF PRINT VS. DIGITAl
In days past, people checked the glossies and classifieds to find the
homes they wanted; newspapers had entire sections devoted only to
property. But with the rise of digital, this is now all available on the
web, with thousands of properties listed on a single property portal.
According to Market Insight, the total UK classified property advertising
spend was £389-million. In 2012 this comprised a 45% and 55% split
between digital and print advertising, respectively. When digital started
to eclipse print media, it was expected that costs would decrease, but
this is far from the reality. Enders analysis estimates that in the UK, digital
advertising will comprise £234-million, while print will
comprise £193-million.
THE ADVANTAGE OF GOING ONLINE
So why is digital advertising so expensive? Could it be
that property portals have gained dominance and are
now able to set their price for advertising with estate
agents having no choice but to pay or lose ground to
their competitors? Two US real estate property portals
that started off in 2005/2006 are now valued at
$5.3-billion, (Zillow) and $3-billion dollars, (Trulia).
The driving force for most property portals is to get a
bigger piece of the advertising spend of real estate
agents in that country. The reach and uptake of digital
advertising has become so high that it has allowed
property portals to dominate the property search
sector for real estate. And many of these property
portals are publicly listed companies with one singular goal in sight:
profit - whether it’s at the expense of the customer or the estate agent.
WE TAKE A LOOK AT WHO THE DOMINANT PROPERTY PORTALS ARE OVERSEAS: FOREIGN PROPERTY PORTALS
Looking firstly at the UK and Australia, the dominant property portals
are Zoopla, Rightmove, (UK) and Realestate.com.au, (Australia). Zoopla
and Rightmove are both public companies traded on the stock market
and they charge high fees to estate agents who use their portals: Zoopla
averages £301, while Rightmove averages £607. The reason they can
charge such exorbitant fees? Easy, there isn’t any competition. Although
that may be set to change as an agent owned property portal is in the
pipeline for the UK. Called OnTheMarket, this portal is wholly agent
owned and signed up 3000 agents in the first five months. What it is
looking to do is take away business from its two rival giants, by making
agents sign a contract stating they will use only one other portal. Agents
will have to decide between Zoopla and Righmove and these two
mammoth portals will therefore lose some of their stranglehold on the
industry. In Australia the fees are even higher. Realestate.com.au has
different models of payment: $130 for a featured listing, $525 for a
highlighted listing and a premier listing which costs $2 790. They have
also introduced a new market based fee which has estate agents up in
arms over how much they will pay to market homes in
premier areas. Glenn Batten, General Manager at First
National Real Estate in Nerang said: “Realestate.com.
au is proudly trumpeting that the prices are now market
based as though this is somehow going to make agents
feel better. They even provide the requisite scenario
where an agent will save money on this new plan. I
believe that like most prices changes before it, 10% -
15% of agents will see some sort of modest reduction
in their monthly spend. About 30% - 40% will receive
a small to medium increase only but about 45% - 60%
will attract significant rises in their total spend with the
portal, if they continue to sell the same level of add on
products.”
The situation in New Zealand is a far healthier one.
Thanks to a boycott over prices charged by the largest
property portal in New Zealand, Trade Me, Realestate.
co.nz was able to become the largest property portal in New Zealand
and is now a major force to be reckoned with. They are also industry
controlled, with estate agents holding 50% shares and major real estate
companies holding the other 50%. TradeMe has just recently revised
their prices in an effort to win back estate agents and reclaim the footing
they have lost by having fees nearly double to those of Realestate.co.nz.
WHERE DOES SOUTH AFRICA STAND?
It’s frightening to see how easy it is to create a portal that can simply
charge what they like because they have no competition. The question
is will this happen in South Africa? If you are an estate agent in South
THE REACH AND UPTAKE OF DIGITAL ADVERTISING HAS BECOME SO HIGH
THAT IT HAS ALLOWED PROPERTY PORTALS TO DOMINATE THE PROPERTY SEARCH
SECTOR FOR REAL ESTATE
Page 11: PROPERT Y PORTALS IN SA
Africa, then you use one of two portals: Private Property or Property
24. The one is controlled by a major conglomeration and the other by
an international equity fund. Neither are controlled nor owned by the
industry as a whole. As such, they can pitch their fees as high as they
like and agents have no choice but to pay. The alternative is to risk
losing business as competitors gain a stronger foothold as they use one
of the two dominant portals in South Africa.
THE MERGE OF US PROPERTY PORTALS
What’s even more alarming is what has just happened in the US. Zillow
and Trulia are the two largest property portals in the US. Zillow has
77 million unique users per month while Trulia has about 47 million.
Zillow has just announced its intention to buy Trulia, a merger that will
be completed in 2015 and will see the two largest property portals
combined. This merger will make these two companies the largest force
in online real estate. Zillow-Trulia will now control inventory, pricing,
merchandising and the customer relationship. While consumers are not
yet buying homes online, this could very well change in the future and
with dominant portals controlling the market it’s understandable that
estate agents are concerned about their future and what role they will
play. The other downside to such total domination is of course pricing,
although realtor.com, which is owned by the agents, has been effective
in keep pricing in the US far more favourable than is the case in the UK
and Australia. But the newly formed Zillow-Trulia will be the clear market
leader and estate agents may have no choice but to pay up, and will
also be at the mercy of whatever changes Zillow-Trulia implement to
existing agent and customer relations.
THE FUTURE OF REAL ESTATE AGENTS
Could estate agents simply become obsolete in the future? This is
certainly a fear worth noting, as property portals gain more and more
dominance and allow estate agents as well as private sellers to list
houses. By doing this they are potentially changing the future of the
property industry. What’s to stop them from eradicating the need for
estate agents in the future and simply taking over the sale and marketing
of houses from private sellers? Without competition, there really is
nothing stopping them and as large portals grow in dominance, estate
agents should be worried about who will control the property market in
the future. This was the Private Property model until quite recently.
Looking at how property portals have gained absolute dominance in
countries abroad, the question remains: will we see this model applied
in South Africa? The answer is absolutely yes. Currently the key players
in South African property portals are Property 24, with the backing of
Naspers, who reported a R62.7 billion profit for 2013, and Private
Property owned largely by a major international equity fund. While
other property portals exist ( iolproperty.co.za is a solid third ), none
have the clout or numbers that these two property portals currently have.
If looking at trends abroad are anything to go by, the bottom line is that
without a portal that is industry controlled, these two property portals
could very well become the next Zillow-Trulia, Rightmove or Realestate.
com.au, leaving estate agents at their mercy.
THE WAY FORWARD
The problem and the solution are very simple. Overseas property portals
have shown what happens when you have a few property portals who
totally dominate the market: you effectively allow them to set the price
and the conditions for digital advertising. Looking at what has happened
in the US, the dangers in allowing this to happen are very clear. In
order to ensure that prices are reasonable and fair and that estate
agents remain a necessary part of the real estate process will require the
industry organising themselves quickly and effectively.
Jan le Roux
CE Rebosa
WHAT’S TO STOP THEM FROM ERADICATING THE NEED FOR ESTATE AGENTS IN THE FUTURE AND SIMPLY TAKING OVER THE SALE AND MARKETING OF HOUSES FROM PRIVATE SELLERS?
Page 12: PROPERT Y PORTALS IN SA
Together we can achieve what individually we cannot.
Together we can:
- Try to prevent that shortcomings in the current Act are not repeated in the Property
Practitioners Bill.
- Interact with the EAAB to facilitate the issue of fidelity fund certificates timeously & fast.
- Interact with all stakeholders in the real estate industry to ensure that our industry is
vibrant, growing and prosperous for all.
To be effective we need the vast majority of business
owners to be members - JOIN!
Join by visiting www.rebosa.co.za – fees are affordable,
only R20 plus VAT per registered estate agent
in your office per month.
Please contact us if you have any questions/suggestions.
visit www.rebosa.co.za for more details
YES WE CAN!
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Spire Property Management, and is virtually
fully let. Amongst the new tenants, the Cape
Quarter now has a Vida e Caffé, which
opened its doors in May and has been
extremely busy in the short time since then,
as well as a Cold Press, opened under the
Vida e umbrella, which serves cold-pressed
Page 14: INDUSTRY NEWS
INDUSTRY NEWS
CAPE QUARTER TO SAVE THROUGH GREEN ENERGY REDUCTIONS
The Cape Quarter, the flagship property
within the Tower Property Fund portfolio, has
recently undergone a lighting retrofit as part
of a greening transformation planned for
the centre. This retrofit is expected to see an
impressive R1-million per annum saving in
energy costs for the property. Other initiatives
soon to be rolled out are the installation of a
Power Factor Correction Unit — a device that
regulates large spikes in usage - as well as the
installation of solar energy.
“The Cape Quarter has also been registered
as a pilot project for the Green Building
Council of South Africa’s new Existing Building
Performance Rating Tool,” explains Marc
Edwards, CEO of Tower Property Fund. “This
will allow us to establish a benchmark to see
how the Cape Quarter compares to similar
centres in terms of energy use and will allow
a transparent means of measuring energy
for tenants.”
The centre in general has experienced a
marked improvement since being purchased
by Tower Property Fund and managed by
fresh fruit juices – both of which introduce new
national tenants to the mix.
Vida e and Cold Press join national names like
Spar, Spar Tops, Deloitte’s, Lindt and Pernod
Ricard, together with a host of specialised
retail offerings at the Cape Quarter.
“Going forward we will be engaging with
architects to strategically create ways of
improving foot flow through the centre,”
says Edwards. “The findings and successes
from Cape Quarter will be rolled out to other
buildings within the Tower Property Fund
portfolio. A retrofit of 382 Jan Smuts Drive will
begin in July, initially with the upgrading of the
façade of the building as well as the atriums.”
Tower Property Fund had their financial year-
end in May and full results will be released in
July. For more information on Tower Property
Fund contact 021 685 4020.
Page 15: INDUSTRY NEWS
Some amendments to the Rental Housing Act
that are about to be passed by Parliament will
make it all the more necessary for residential
landlords to seek professional help to manage
their properties. That’s the word from Andrew
Schaefer, MD of Trafalgar, who says the
amendments will mean, for example, that
every property lease has to be in writing and
has to be correctly drafted to comply with
certain statutory requirements as regards
landlord and tenant rights and responsibilities.
“This alone is a major departure from the
current Act, which states that a lease only
needs to be in writing if the tenant requires
it and has led to many thousands of tenants
and landlords, especially in informal housing
settlements, living without any sort of legal
document stipulating what their respective
rights and responsibilities may be. However,
most landlords do not have the know-how
to draft a fully compliant lease themselves
— nor the time to handle the many other
administrative tasks imposed by the
Rental Housing Act.
“These include the issuing of detailed receipts
for every payment made by the tenant,
the management of tenants’ deposits and
provision of proof of the interest earned
on these deposits as well as receipts for
damages repaired, and the organisation and
documentation of inspections every time a
tenant moves in or out.” He says that in order
to comply with the amendments, landlords will
need help from professional rental property
managers with access to standardised
documentation, automated administration
systems and, if necessary, advice from
specialist attorneys.
The Rental Housing Amendment Bill, which
is due to be enacted later this year, will also
make it mandatory for landlords to provide
tenants and their households with safe,
weatherproof accommodation of adequate
LANDLORDS WILL NEED MORE HELP AS RENTAL LAW CHANGES
size; to keep the property in a state of good
repair and, where possible, “to facilitate
the provision of utilities to the property”.
Schaefer says this clause is obviously intended
to prevent people from letting backyard
structures that violate most building and
planning regulations, “but it also applies
to landlords in the formal sector and holds
the potential for serious disputes if their
tenants and properties are not regularly
monitored and inspected by professional
rental property managers”.
And speaking of disputes, he says, one
excellent aspect of the new law is that it will
make it mandatory for every local authority
to establish a rental housing information
office, and for every province to establish a
Rental Housing Tribunal, as opposed to the
current arrangement where this function is
left to the provinces to decide. “This will give
many more landlords and tenants access to
impartial advice and assistance when it comes
to resolving disputes.”
This is in line, Schaefer says, with the
Department of Human Settlements’ stated
objectives in introducing the new legislation,
which is to create a “fair and equitable”
rental housing landscape for an estimated
2.5 million to 3 million South African
households that rent their primary
accommodation and their landlords.
“But as much as we applaud this objective,
the fact remains that increased regulation of
the rental property market will result in an
increased administrative and managerial
burden that will largely fall on landlords,
and that many more of them are likely to fall
foul of the law as a result unless they engage
professional assistance.”
Andrew Schaefer, MD of Trafalgar
Page 16: INDUSTRY NEWS
Property development listings need to have as
much information as possible in one place,
and what often happens is that the majority
of homes available in developments, when
advertised online, are listed as a single
residential listing.
This is not ideal, says Simon Comley, director
of PropertyEngine, because it is not usually
possible to fit the entire development’s
information or units available in that type of
listing, nor will it do the development justice. To
this end, a service agreement has been entered
into between PropertyEngine and Property24,
whereby PropertyEngine feeds development
information into Property24’s development-
specific listing section, which is wholly unique
to PropertyEngine at this point, says Comley.
RED-i (Real Estate Development Interactive)
and PropertyEngine, in turn, have entered
into a separate collaboration agreement
allowing their development information,
via PropertyEngine, to be published on
Property24. As a leader in development
sales information and management systems,
RED-I AND PROPERTYENGINE JOIN FORCES TO LEAD THE WAY IN ONLINE LISTINGS
RED-i is a rich source of content on various
residential projects. “Collaboration between the
companies was obvious,” says Comley.
Why would the different listing be important,
most would ask? A single residential listing
is one unit in a development, but generally
developments have more than one option from
which to choose. The problem here is that the
house hunter will not know that. The house
hunter might find a listing for a two-bedroom
unit, but is looking for a three-bedroom unit
— and will not know what that development
has on offer unless he or she goes back to the
search and goes through all the other listings
in that area, which is very time consuming.
The New Development Listing solves this
problem by providing all the plans and
information in one place.
“The attention, therefore, is being focused
on the buyers’ and developers’ needs,”
says Andrew Kumm, a director at RED-i.
“With PropertyEngine now feeding both
the Property24 and HelloHouse listing
platforms with pertinent information on new
developments, potential buyers have a better
idea of what is on offer and the developer has
a better mechanism to showcase the project.”
“In our recent marketing efforts we’ve talked a
lot about this new way of listing developments
and why our clients should be publishing
their developments on it. Developers tend to
understand the importance of this but agencies
don’t often grasp why. The reason tends to be
the same; most estate agencies (at least the big
ones) already have a feed to Property24, often
through their own proprietary software or via
PropControl. They often use this feed to publish
an example unit for a development onto the
site and so they feel like they already have a
presence there,” says Comley.
But there is often more to a development than
just the houses available for sale within it. Some
developments are like whole new cities with
gyms, hospitals and even top schools. The New
Development Listing gives the house hunter a list
of facilities available on that development, so
they will be more aware of what’s on offer
and if it’s suitable.
And last but not least, says Comley, is that
developments are selling new houses and
not previously owned ones (resales will,
in all likelihood, come later), so the New
Development Listing gives the user the ability to
hone in on the categories they need.
“The New Development Listing space on
the portals has improved dramatically, and
I would encourage the marketing teams and
selling agents of new developments to consider
the needs of both the buyers and sellers
(developers) when listing. The technology is
there and should be utilised in the interests of
all stakeholders,” says Kumm.
For further information contact Andrew Kumm
on 082 870 4346 or email
From left to right: Deon Basson (RED-i managing director), Simon Comley (PropertyEngine founder and director) and Andrew Kumm (New Business Development director at RED-i)
SALE AGREEMENTS WHY ATTENTION TO DETAIL IS CRUCIAL In property sale transactions, whether commercial or residential, property purchasers often opt to buy in a company rather than in their personal capacities. Whichever way one goes about it, it is strongly recommended that you consult with your conveyancer before signing the agreement, to avoid the pitfalls that often arise.
In this regard it is important to give due consideration not only to the decision to buy in an entity, but also to clearly refl ect the purchasing entity in the sale agreement. In the June 2013 judgment in Osborne v West Dunes Properties 167 (Pty) Ltd, a R 17 million sale fell through because the purchaser did not clearly indicate whether he was purchasing the property in the name of an existing company he
owned or in the name of a shelf company that he intended to purchase for this purpose.
The Court found that the statutory requirement that the agreement must be ‘signed by’ the parties, was accordingly not met as the signature of the purchaser that appeared in the agreement seemed to indicate that the purchaser was the existing company and not the shelf company (which was the intended purchaser). The signature was therefore not that of the true purchaser and rendered the written agreement invalid.
Speak to a property law expert for guidance in all your property matters. Contact us at www.stbb.co.za
www.stbb.co.zaCape Town 021 406 9100 | Claremont 021 673 4700 | Fish Hoek 021 784 1580 | Table View 021 521 4000 | Stellenbosch 021 001 1170 | Tygervalley 021 943 3800 | Somerset Mall 021 850 6400 | Illovo 011 219 6200 | Centurion 012 001 1546 | Bedfordview 011 453 0577
COMMERCIAL LAW | CONVEYANCING | EMPLOYMENT LAW | ESTATES | FAMILY LAW | LITIGATION | PERSONAL INJURIES & 3RD PARTY CLAIMS
ILLOVO OFFICEGround Floor, Boundary Place, 18 Rivonia Road, Illovo 2196Tel: 011 219 6200 | Fax: 011 219 6238
CENTURION OFFICEGround Floor, Block D, Lakefi eld Offi ce Park, 272 West Avenue, Centurion 0157Tel: 012 001 1546 | Fax: 086 241 7535
BEDFORDVIEW OFFICE103 Boeing Road East, Bedfordview 2008PO Box 75359 Gardenview 2047, Docex 7 EastgateTel: 011 453 0577 | Fax: 011 453 9721
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Page 18: ESTATE AGENT CHALLENGES
I REFUSE TO SELL YOUR HOME!
... AND OTHER STORIES
A recent post on Facebook highlighted an interesting challenge that
most agents face in their careers. And while the message was seemingly
endorsed by fellow agents who had befriended this person, the post was
torn apart by those not involved in the real estate sector. The statement
that caused certain people to become hot under the collar involved an
agent who had told a seller that he refused to deal with him. By the
sounds of things, the ‘know-it-all’ had pushed this particular agent to the
absolute limit and instead of losing it completely, the agent had chosen
to simply walk away. The post attracted some 275 comments and,
judging by the tone, several of the posters were ready to lynch the agent
for pointing out that he didn’t want to deal with an unreasonable seller.
In the last edition we asked various industry leaders
what they perceived to be the most challenging aspect
of working in real estate. We received some pretty
terrific answers but, interestingly, no one touched on the
challenges faced by agents when dealing with clients
who are disrespectful, difficult and/or just plain rude.
It got us thinking...what sort of challenges does the
average agent have to contend with and how do they
overcome these challenges?
We chatted to three top agents to get their take
on things and, while they tended to agree on the
challenges they faced, how they dealt with these
challenges differed from agent to agent.
When asked if she had ever refused to market a home, Donna Sipman,
a RE/MAX Masters sales associate, replied: “No, never. It is important
for me to build strong relationships with my sellers. Gaining an
understanding of what is important to them enables me to keep these
interests front of mind.” When asked if she had ever refused to deal with
a particular buyer, she answered that although she had never walked
away from a buyer, she had been frustrated by buyers who were keen
to purchase a home, but who, when the offer was put in, realised they
couldn’t afford it and the bank declined the bond.
However, both Michael Pashley from Harcourts and Marco Coetzer from
Keller Williams Realty said they wouldn’t deal with every seller who
approached them. “I have a policy of not taking on homes I know don’t
stand a chance of selling because of their price,” says Pashley. “I firmly
believe that having a property on the market at an extremely inflated
price and for a long period of time damages its saleability, especially
when the seller gets to the stage that they really need it sold. It doesn’t
help the seller or the agent to market a home with an extremely inflated
price tag. If a property is on the market for months on end, the buyer’s
perception is that there is something wrong with the home and they will
then very often make an offer well below true market value. So, yes, I
have on many occasions had to walk away from a listing due to price.
Alternatively, I advise the seller that they are better off
not selling until the market appreciates enough to meet
the value they want for their property.”
Coetzer has a similar view, saying that he had refused
to take on a mandate on many occasions. “A major
problem area in the industry involves agents who
accept an overpriced mandate. This, in my view, just
feeds an unrealistic expectation. Very few agents are
able to offer proper price counselling, and accepting
a mandate on an overpriced property simply leads to
a frustrated seller. This causes serious damage to the
reputation of both the agent and that of the industry
as a whole.”
When asked if he had ever walked away from a buyer, Pashley stated:
“Although it is extremely rare, it has happened. Generally, though, it
only happens when I find that the buyer is not in a position to purchase
and simply likes looking at houses. When these situations occur, it is not
only a waste of an agent’s time, but is also unfair on sellers who are
extremely house-proud and often spend much time preparing their homes
for each viewing.”
Coetzer said that he, too, would stop working with a buyer if that buyer
was expecting to purchase a home at an unrealistic price. He raised
a good point when he noted that he would much rather walk away from
a buyer than let the buyer down later.
Page 19: ESTATE AGENT CHALLENGES
“I HAVE A POLICY OF NOT TAKING ON
HOMES I KNOW DON’T STAND A
CHANCE OF SELLING BECAUSE OF THEIR
PRICE,” SAYS PASHLEY.
“AS AN ESTATE AGENT MY JOB IS TO GIVE THE SELLER SUFFICIENT VALIDATED FACTS ABOUT CURRENT MARKET CONDITIONS, RECENTLY SOLD PROPERTIES SIMILAR TO HIS IN HIS AREA, ACCOMMODATION PRICE AND CONDITION, AS WELL AS ABOUT SIMILAR PROPERTIES CURRENTLY ON THE MARKET. THEN, BASED ON THE ABOVE, THE CHALLENGE IS TO PRICE THE PROPERTY COMPETITIVELY IN ORDER TO REACH THE SELLER’S GOAL TO HAVE THE PROPERTY SOLD ALIGNED TO HIS TIME FRAME AND REASON FOR SELLING.”
THE BIGGEST CHALLENGE
While difficult customers are always going to be a problem, when
asked what they regarded as their biggest challenge, agents had
bigger fish to fry.
“Overpricing is certainly the biggest challenge when dealing with
sellers,” says Coetzer. “As an estate agent my job is to give the seller
sufficient validated facts about current market conditions, recently sold
properties similar to his in his area, accommodation price and condition,
as well as about similar properties currently on the market. Then, based
on the above, the challenge is to price the property competitively in
order to reach the seller’s goal to have the property sold aligned to his
time frame and reason for selling.”
Sipman believes that the most challenging part of her job is dealing
with the public’s negative perception of estate agents in general, and
negotiating commission. “The only way to deal with these challenges is
to constantly prove to my clients, both sellers and buyers, that I keep my
promises by acting professionally and maintaining a consistently high
standard of service. It stands to reason that sellers are more likely to give
bigger commissions if they are impressed with their agent.”
Pashley, on the other hand, says his main challenge is keeping all the
concerned parties happy throughout the transaction process. “The buyer
has one view on what should happen and the seller has another. To
keep everyone happy and reasonable can be a massive challenge when
clients have such definite views. I must say that the majority of my clients
are very reasonable and have been an absolute pleasure to deal with.
However, sometimes we do face difficult clients who insist on everything
being done their way. That can be a challenge if they are being unfair.”
It seems that agents do have to prove themselves to a client base that
doesn’t necessarily hold them or their profession in very high esteem.
Overpricing is - and possibly always will be — a major issue, as is
trying to keep everyone happy during the entire sales process. However,
what is reassuring is that not only do these agents recognise the
challenges they face, they go all out to deal with them in a professional
manner.
Although there are some in the public arena who will argue that selling a
property is child’s play, the simple truth is that it isn’t and it takes a truly
committed property professional to not only get the job done, but to do it
to the best of their ability — every time.
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Page 20: ESTATE AGENT CHALLENGES
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Page 22: TIME TO DIVERSIFY
OR FACE DWINDLING PROFITS?IS IT TIME TO DIVERSIFY
Page 23: TIME TO DIVERSIFY
Another way you can create a business that is recession proof is
by adding to the services you already offer. Asrin’s commercial
director, Shiraaz Hassan, says: “Examples of this would be long-
term rentals and short-term rental administration as well as training
and registering as auctioneers. There seems to be an opportunity within
this sphere at present.” Michael Bauer, general manager of IHFM
property management company, takes this one step further: “You can
offer more services that are all property related that feed into each
division. For example, a sales division might create landlords, which
would then create the need for a rental division to manage the rental
properties. There could also be a holiday/short-term letting division,
which offers comprehensive holiday services. If you are selling sectional
title properties, it makes sense to have a property management service
to offer the bodies corporate of the schemes sold. Then you could have
your own bond origination division as this then keeps the application of
bonds and following up of finance in-house.” By keeping all the services
that go along with purchasing, selling and letting property in-house, you
are offering your clients a one-stop property shop, you can increase
your actual revenue through the additional services and you leave clients
satisfied as they don’t need to go through two or three companies to buy,
sell or rent property. This also becomes a key selling point to attract new
business to your company; why go anywhere else when your company
can meet all their needs?
The current economy in South Africa faces slow growth and the knock-on
effect of this is the banks’ stricter lending policy towards potential buyers
looking for their dream home. What does this mean for estate agents and
agencies? It means that if you want to do more than just survive in the
current economy, you need to diversify and ensure that whatever you do,
you do it expertly. There are a host of buyers’ needs that you can diversify
to meet and in the process ensure your company thrives.
Gill Marcus, governor of the Reserve Bank, released a statement in May
2014 stating: “The Bank’s economic growth forecast for 2014 has been
revised down significantly to 2.1%, and the first quarter growth outcome
is anticipated to be the lowest quarterly growth rate since the recession
in 2009. Although growth in the second quarter is expected to improve
somewhat, the risks to the 2014 growth forecast are strongly on the
downside, with developments in the mining sector an ongoing cause for
concern. The demand side of the economy is also weakening: Household
consumption expenditure growth continues to moderate amid slower
credit extension to households, high levels of consumer debt levels
and moderate job growth.”
While the interest rate has remained unchanged for now, the reality is
that people face higher costs, and with levels of debt in South Africa
remaining high, banks are tightening lending criteria and without home
loans few people can afford to invest in the property market. Where does
this leave the property market? While there has been an improvement,
conditions still remain challenging to estate agents and agencies alike.
Dr Andrew Golding, chief executive officer of Pam Golding Property
Group, says: “The backdrop of the current South African economy is the
fact that the market fell precipitously in 2007 and there has only been a
gradual recovery, probably only to some 50% of the 2006 highs.” The
first question you need to ask yourself as an estate agent or property
professional is: Can I afford not to diversify my business to increase profit?
Diversifying is no longer just an option, it is a necessity in a market in
which it is becoming harder to see the same profits as years past.
SO WHERE DO YOU START?
Well, if you are an estate agency owner, the first place you need to
start is with your staff. Jeanne van Jaarsveldt, Institute of Estate Agents
of South Africa (IEASA) national president, says: “The key focus is to
invest in your people. Focus on continual skills development, as well
as a total customer centric experience for the consumers. Eighty six
percent of consumers say that they will do business with the specific
same agents once the transaction is concluded, but only 28% actually
do. This is where agents need to have a long-term relationship with their
past clients, so as to build rapport and be relevant to such an extent that
the agent will be the obvious choice when that specific consumer wants
to use the services of a real estate agent again.” In any business, you
are only as good as your reputation, and leaving customers happy will
make you an obvious choice when they buy or sell another property. The
other positive is the word of mouth effect. All the advertising in the world
cannot make up for word of mouth; people trust those closest to them
and when you get a good recommendation from family or friends on
which company to use, generally that’s the one you will use.
Imagine how word of mouth can increase your business with just a
few people telling their friends and family and so on, and best of
all, it’s completely free.
“The key focus is to invest in your people. Focus on continual skills development, as well as a total customer centric experience for the consumers. “
“You can create a business that is recession proof by adding to the services you already offer.”
BY ANGELIQUE REDMOND
GET YOUR DIGITAL GAME FACE ON
In a modern society, people are going more and more digital. While
the actual process of buying or selling will always involve people, when
it comes to an initial search, people are no longer using traditional
methods. Social media and digital technology have forever changed the
way we live, the way we shop, the way we choose where we want to
live and how we find the perfect home. Bryan Biehler, managing director
of Huizemark, says: “Society is moving more towards online presence
and this allows agencies to reach a broader client base and market.
Clients can access more properties and services from the comfort of their
own homes, they can be more selective, save themselves time and apply
for specific products online or from their mobile phones, for example,
bond calculators, bond finance, advice on buying and selling, etc.”
Before people even decide which property company to use, they will do
research online. If someone recommends your company, most people
will take a look at your company website and decide from there whether
they will use you or not. You cannot afford not to have a strong digital
presence and a website that will give a potential client the best user
experience possible. Jeanne van Jaarsveld says: “Consumers are more
and more inclined to research their requirements online before even
talking to an estate agent. The usage of technology like iPad applications
has become imperative for agents to remain competitive and relevant.
Those who do not have access to these types of technology will find it
more and more difficult to remain in real estate.”
There is no denying that times are a bit tough, and this is not likely to
change anytime in the near future. But it’s far from doom and gloom;
there are many ways to increase your current business and make sure
that as an estate agent or agency you don’t just do better, but thrive.
Take a thorough look at your business and your staff; sometimes all it
takes is a few simple steps or new services to ensure your company
comes out on top and your estate agents bring in more clients.
If you don’t want to add extra services to your company, why not partner
with a company that already offers those services and can give clients
you refer to them a preferential rate? The more you give to your clients,
the more you stand out from other companies in the same sector. In a
stringent economic climate, it’s about offering value to people looking to
use your company. What do you offer that other companies don’t?
How can you make their experience the best one in property?
Diversification is not the answer for everyone and if you feel that it’s not
the answer for you, then take a look at your core services. How can you
improve them? If you choose to do only one or two things, then you need
to do them exceptionally. This also extends to the customer service you
offer. One simple way to improve on what you are already doing could
just be extending your area of buying and selling. Look at which areas
will bring in more revenue and will add that extra something to your
company. Callie Roberts, director of the Property Podium, says: “Be in
a position where one agent can sell a cheap house and/or an expensive
one. Link areas and markets to protect against highs and lows in the
various markets.”
“If you choose to do only one or two things, then you need to do them exceptionally. This also extends to the customer service you offer. One simple way to improve on what you are already doing could just be extending your area of buying and selling. “
“In a stringent economic climate, it’s about offering value to people looking to use your company. What do you offer that other companies don’t? How can you make their experience the best one in property?”
“Society is moving more towards online presence and this allows agencies to reach a broader client base and market. “
Page 24: TIME TO DIVERSIFY
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Page 26: INDUSTRIAL PROPERT Y RESILIENCE
SOUTH AFRICA’S INDUSTRIAL
SECTOR SHOWING RESILIENCE IN
TOUGH CONDITIONS
The 20.9% investor returns on light manufacturing/low grade industrial
property during 2013 were highlighted in the Investment Property
Databank (IPD) 2013 report released earlier this year. Named as the best
money-spinner for local investors, this segment also outperformed super
regional shopping centres larger than 100 000m² with returns of 19.4%,
and inner city offices at 12.7%.
Total returns of 15.3% on retail, office and industrial that reached a six-
year high of 15.3% were based on the report results of 60% of a sample
of 1 354 professionally managed investment properties worth R213-
billion. South Africa was shown as the most lucrative commercial property
investment destination among 16 countries whose 2013 results were
released simultaneously.
The main reason behind these impressive performances, according to
local analysts, is the asset management skills of South Africa’s commercial
property owners. Executive director of IPD SA Stan Garrun commented on
the sector’s impressive performance: “Property fundamentals continue to
demonstrate the sector’s advantages, providing investors with consistently
robust and diversified returns. Active asset management and a singular
focus on sustainable net income growth have once again shone a light
on South African property.”
Local financiers view the positive returns for investors as an indication of
the professional nature with which the local property industry is managed.
The sector’s response to market demands, where exceptional innovation
and entrepreneurship creates a competitive edge, has long been a
trademark of this sector. Trends are pointing to more quality properties
being developed in convenient locations, where customised offerings
New developing trends and expansion in South Africa’s commercial market during 2013 compared favourably with global performances
enhance service levels. Once cemented in, long-term commitments
provide greater ease of inflationary adjustments, where good
maintenance and upkeep improves capital growth on properties.
The latest trend of multipurpose developments with combinations of
industrial and office space creates a varied tenant base, says Ken
Reynolds of Nedbank Corporate Property Finance Gauteng. He says:
“An increasing number of developers are exploring multipurpose
developments, as the trend creates new business hubs that prove popular
and convenient for South Africans and continue to drive the economy.”
A typical example of this trend is the multibillion rand mixed-use Route
21 Corporate Park that is one of Irene’s biggest mixed-use developments
with an industrial component. With a varied tenant mix, it offers secure
access to a high-tech business park with A-grade offices, industrial and
warehousing space, and a small retail element.
Another trend seeing increased demand for
sustainable building and development is large
companies which invest heavily in the delivery of
high end quality specifications in central locations,
as seen at Improvon’s R192-million Gosforth
Business Park. This project, says Reynolds, offers
ideal exposure just off the N3 highway that aims
to raise the standards of all the other business
parks and estates developed along this route from
Johannesburg to Pretoria. Imrovon Group’s Jorge da
Costa says that although the industrial market is still
experiencing significant vacancy rates, demand for
optimally located and affordable industrial space
is high, while a lot of the remaining vacancies are
limited to older, lower quality or specification stock.
Increased demand for large scale mixed-use
development is behind the multibillion rand Cornubia Industrial and
Business Estate development in KwaZulu-Natal. This central location,
in a strategic position just 15km from the new King Shaka International
Airport, is less than 5km from Umhlanga’s Town Centre and Gateway
precincts and is conveniently accessible from the N2 freeway,
M41 and R102.
Cornubia is planned as an environment-friendly and eco-sensitively
designed development that makes provision for light industrial use,
including warehousing, distribution, service-oriented business and
offices. According to Tongaat Hulett Developments, occupants will
benefit from safety and security, traffic accessibility, environmental
sustainability, attractive landscaped public spaces and close proximity
to labour opportunities north of Durban. A large portion of the business
estate comprises a landscaped and rehabilitated wetland and
open space system.
The registration last year of the non-profit entity, the Cornubia Industrial
and Business Management Association (CIBEMA), will serve to take
responsibility of the management and maintenance of public and visible
private spaces. The safety and security of this environment is set to
enhance the overall values of properties in the estate. It is also
a prerequisite for owners and buyers to become members of CIBEMA,
which will be liable for levies payable to the association.
This business and industrial development also intends to integrate
disparate communities and add greater value and opportunities for local
residents in the area. The long-term aim is for the development of
a flagship residential project with a total of 24 000 homes, of which
15 000 are proposed for subsidised housing development by the
municipality in partnership with the province, with the balance planned
for residents in the affordable housing income groups.
Affordability of constantly increasing utility costs is also seeing green
landlords attracting more quality tenants. The
inhibiting cost of water and electricity is motivating
greater all-round environmental awareness in an
industry whose operational habits have historically
been subject to wide criticism. Limited budgets within
small property companies and private landlords is
driving leasing agents and developers toward cost-
reducing measures, to optimise their tenant base
from the earliest stages.
Long-term savings of reduced energy bills are seeing
more developers installing energy-saving mechanisms
from the outset, while owners of older buildings are
increasingly retrofitting and upgrading to harvest
daylight and rainwater. Foreign investors are not
deterred by the initial capital outlay required for
double glazing installations, which has long been
considered an excessive luxury by local developers.
Top performing leasing agents are well accustomed to catering for
the changing needs of large tenants and property owners by way of
custom solutions, says Clive Williamson of Broll Properties Gauteng.
This is illustrated by growing demand for practical yet vitally important
operational solutions within the logistics industry. Top end multipurpose
storage and warehousing facilities within close proximity to airports and
harbours are required to offer generous warehouse stacking heights
and convenient access points.
Positive change and steady growth within the country’s industrial sector
offers sound local and foreign investment opportunities.
“AN INCREASING NUMBER OF DEVELOPERS ARE
EXPLORING MULTIPURPOSE DEVELOPMENTS, AS THE
TREND CREATES NEW BUSINESS HUBS THAT PROVE POPULAR AND
CONVENIENT FOR SOUTH AFRICANS AND CONTINUE TO DRIVE THE ECONOMY.”
Page 28: INDUSTRIAL PROPERT Y RESILIENCE
BY ANNA-MARIE SMITH
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Page 30: MARKET SHARE
PROPERTY FINANCE IN SOUTH AFRICAProperty Professional speaks to one of the leading industry statistic and
insight providers to compare property finance in South Africa from
the beginning of 2014 to date. These statistics include the wealthiest
residential areas in South Africa, the average house values in these
areas, and a profile of the people living in these areas.
WHICH ARE THE WEALTHIEST RESIDENTIAL AREAS IN SOUTH AFRICA AND WHAT ARE THE AVERAGE HOUSE VALUES IN THESE AREAS?
A PROFILE OF THE PEOPLE L IV ING IN THESE AREAS
RR
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GAUTENG WESTERN CAPE KZN
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NUMBER OF PROPERTIES
POPULATION
NUMBER OF MALES
NUMBER OF FEMALES
CLIFTON
STEENBERG GOLF ESTATE
LLANDUDNO
HAWAAN FOREST ESTATE
CONSTANTIA HEIGHTS
BISHOPSCOURT
CONSTANTIA
WESTCLIFF
BLAIR ATHOLL
WITTEBOOMEN
WATERFRONT
SWAANSWYK ROAD
DUNKELD
290
293
279
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612
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313
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266
560245
300
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132
507
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Credit: Information supplied by Lightstone, www.lightstone.co.za
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What portals are out there and how do I choose the best for my business?
Page 32: THE POWER OF PROPERTY PORTALS
THE POWER OF PROPERTY PORTALS
IOL
IOLProperty is a joint venture between Independent News and Media
(INM) (60%) and an estate agents’ consortium (40%). The recent
purchase of the shareholding by the estate agents’ consortium is
intended to be an open initiative by the industry, so any estate agent
can buy shares from the above-mentioned 40%.
Of the top three portals, IOL is the youngest, having launched in January
2009. It has hundreds of thousands of visitors each month, but traffic-
wise the most notable aspect is the growth rate. Last month IOL had 20%
Property portals are a vital part of any marketing strategy for an estate
agency. But, as with any marketing strategy, it will cost you money.
Property portals are fast becoming one of the highest priced but essential
means of advertising property. So how do you pick the right portal
for your business needs as well as your budget? We have gathered
information from the top property portals currently on offer to make
your decision a little easier:
more visitors for that time of year than any previous since its launch.
The leads it generated were also up by a similar amount.
The real reason for the growth is the launch of its new site earlier this
year. The company went back to basics and redesigned the site with
a single goal in mind: To make it easy for buyers to find their ideal
homes as quickly as possible. Everything else was stripped out, making
the experience for the user simple and streamlined.
With the purchase of INM by the Sekunjalo Consortium, its Internet
strategy has changed dramatically and online is now seen as a major
priority. Grant Leigh, general manager of IOL, has no doubt that the
company will greatly benefit from this new focus.
On the company’s future outlook, Leigh says: “We are a fully self-
sustaining organisation and our growth is and always has been organic,
that is, any profit we make is reinvested in the business. This approach
is unusual for large property portals where a very large upfront
investment and marketing push followed by a period of consolidation
is the norm. The organic approach meant we were relatively quiet for
the first couple of years, but we’re past the hard part and we’ve
ended up with a solid business that is now growing fast and has
great prospects. So the future is bright.”
They are in the process of expanding their estate agent product offering
to help estate agents better market their listings, and the new set of
products, for example videos/virtual tours launched in July, aims to do
just this. As the digital age gains more and more traction in the property
industry, it becomes more important to craft a digital plan to suit core
customers. The new products are part of a broader revision in client
strategy. Visit www.iolproperty.co.za and take a look at the property
portal and rates.
www.iolproperty.co.za
Page 33: THE POWER OF PROPERTY PORTALS
00452 BETTERBOND - REWARDS APP - EAR PIECES RP2.indd 1 2014/08/13 2:29 PM
PRIVATE PROPERTY
Private Property has also upped the ante with a new look for its property
portal, taking into consideration that mobile devices are being used
more and more every day. In fact, says Simon Bray, Private Property’s
COO, research shows that mobile property searches increased by 120%
in the past year. “People are spending more time on their tablets and
smartphones instead of laptop computers, especially when researching
property. In particular, late afternoons and evenings are seeing
a marked increase in mobile traffic.”
Accordingly, Private Property has released a responsive version of its
website. Says Bray: “We decided to step up to the challenge and
deliver the best property browsing experience available in South Africa.
Never before has a property website been optimised like this for
mobile devices.”
Essentially, the platform utilises Private Property’s migration onto the
Microsoft Azure cloud platform – an industry first in South Africa – to
enable a seamless user experience, no matter the device being used.
Now, when a browser navigates to www.privateproperty.co.za the
website recognises the device’s type and screen size, and responds by
giving the best possible version of the site for that device – whether it is
mobile or not. Features unique to mobile devices, such as touch-screen
and swiping functionality, are built in while information-rich features
like geo-location search (which enables a browser to press one button
and find properties in the vicinity) are also inherent. Image-rich results
enhance the personalised experience; and aspects like changing the
resolution and repositioning buttons happen automatically to generate
custom experiences across all devices. All of this ensures that no matter
the size of the device your customer is viewing on, they will get the best
user experience.
The Private Property portal also received an International Media Award
(IMA) in the ‘Lifestyle’ category recently with a score of 478 out of
a possible 500, with content and functionality scoring 99% and 98%
respectively. Private Property’s
CEO Justin Clarke says: “These are
extremely challenging awards to win. We
are proud that the IMA recognises our high
standards of planning, execution and overall
professionalism. We have all of South Africa’s best
properties in one place for buyers and renters to peruse.
Estate agents, banks, developers and landlords all list with
us to give our browsers the widest variety of properties to be
found on any South African portal.”
In January 2014, Private Property delivered more than a million quality
leads to its advertisers and it hosts around a million page impressions
daily. Bray says that the website’s design — both visual and its
underlying code – is significant in that it presents a market-leading
innovation in the South African online property market — the interface is
interactive, intuitive and inspirational. As if an award and a user-based
mobile version of the property portal weren’t impressive enough, the
company also has an app for the Private Property Portal. Released on 1
June 2013, this second version of Private Property’s iPad app sat at the
top position of the South African app store’s free ‘general’ category
within a few days.
The app allows house-hunters to find their next ‘pad’ via a text, location-
based or suburb navigation search. The team designed the app to
enable browsers to access their favourite tools from anywhere in the app
using the nifty all-new slide menu. Bray says that the technical design
gives browsers easy access to Private Property’s estate agents and
landlords by means of an in-app feature that not only provides contact
details and allows direct messaging, but also enables browsers to easily
search for an area’s top agents with the ‘Find Agents’ feature.
Bray says: “I am delighted to see the response. With distinct design
changes to an interface that is familiar to many users, there is bound to
be a period of adjustment, but our objective in every area has been to
improve the overall user experience. We want buyers, sellers, renters
and agents to be engaged and enabled.” He also points out that users
have quick access to their most recent searches directly off the app’s
home page. “You should be inspired when looking for your next home
and so we’ve found ways to make the whole process easier. Whether
you’re planning to buy or rent, the Private Property iPad app will inspire
your search and ensure that you find the home of your dreams.”
An android app with equal functionality is soon to be released. All of
Private Property’s listings are detailed and up-to-date with comprehensive
photo galleries, and most have walk-through videos and 360° virtual
tours – features that are supported on the app. The iPad app is free
to download and use. Simply search for it in the app store. Log on to
www.privateproperty.co.za to browse the completely redesigned and
re-engineered site.
www.privateproperty.co.za
Page 34: THE POWER OF PROPERTY PORTALS
PROPERTY 24
“Online technology plays a crucial role in real estate marketing, which
is why we have invested enormously in developing a digital advertising
platform for the industry that pairs high performance with cost
efficiency,” says JP Farinha, CEO of Property24. “We believe in offering
the industry genuine value and return on investment, and we ensure this
by reducing our listing fees for any agency if we’re not delivering the
leads that we promise. We strive to be the most cost-effective source of
buyer leads in the industry and our competitive packages give agencies
of all sizes the opportunity to make the most of buyers looking for
property online.”
According to independent digital measurement platform, SimilarWeb.
com, Property24.com is the largest of South Africa’s property portals.
With consistent investment in television advertising, a large focus has
been to build a strong brand in the consumer’s mind when it comes
to buying property. The results of this are evident in the company’s
numbers, with over 80% of Property24.com’s audience looking to buy
property, rather than rent, according to SimilarWeb.com. Property24
also enjoys an unrivalled position in both paid and organic search traffic
on Google, ensuring that it engages with potential property buyers at
their first point of interest.
In addition to its focus on attracting quality for-sale leads from its own
platform, Property24’s impressive partner network adds extra value to
its real estate customers by publishing its listings on News24, MWEB,
Mail & Guardian, SA Hometraders, SA Rental and an additional
36 regional sites.
“It’s imperative to us that our customers’ listings reach homebuyers
anywhere they may be thinking about buying property,” says Farinha,
“which is why, given the immense growth in mobile traffic over the last
18 months, we have an unfaltering focus on mobile technology.” In
addition to a tailored mobile site, Property24 is the only portal that offers
mobile apps for all leading mobile operating systems, including Android,
iPhone, iPad and Blackberry. A week post-launch, their new iPad app
shot to number one in the South African iStore ‘Lifestyle’ category and
number five overall.
Property24 believes that when it comes to choosing which portals
to advertise with, it is essential to know that you are spending your
marketing budget effectively. Their dedication to offering value is evident
in their unique ‘Lead Guarantee’, which means that if customers don’t
get the leads they are promised, Property24 reduces its listing fee
by up to 78%.
Property24’s Standard Listing Package includes unlimited for-sale listings
on Property24.com, a free listing on its Partner Network, the Property24
‘Lead Guarantee’ (a reduction in your monthly fee if you receive fewer
than 30 leads per month), and free listing and agency management
software, PropCtrl. To find out more, go to www.property24.com or
email [email protected].
www.property24.com
“ONLINE TECHNOLOGY PLAYS A CRUCIAL ROLE IN REAL ESTATE MARKETING, WHICH IS WHY WE HAVE INVESTED ENORMOUSLY IN DEVELOPING A DIGITAL ADVERTISING PLATFORM FOR THE INDUSTRY THAT PAIRS HIGH PERFORMANCE WITH COST EFFICIENCY,” JP FARINHA, CEO OF PROPERTY24
Page 35: THE POWER OF PROPERTY PORTALS
PROPERTY JUNCTION
PA Media, the largest publisher of property advertising in South Africa,
with regional publications in all major metros under the Property Junction
brand, formed a joint venture with the Times Media Group in 2011 and
released propertyjunction.co.za as part of the suite of Junction sites along
with careerjunction.co.za and autojunction.co.za.
Although still considered the new kid on the block as far as property
listing portals are concerned, PA Media has, in the three short years since
launching, managed to position the portal as a firm favourite among its
estate agent clients. Backed by the property industry, which advertises in
PA Media’s print publications, the portal has focused on the integration
of print and online advertising to ensure that the property buyer or seller
experiences a seamless transition from browsing for properties in
the print publications to finding the properties online where they are
able to access more information and enquire with the relative agents
marketing the property.
This has helped to shape the company’s strategy as far as how it
approaches the market. Dave Asher, executive manager of Property
Junction, says: “It is a known fact that there are only approximately
15 000 property transactions monthly in South Africa, with the majority
of these properties advertised in our publications and simultaneously on
our website. This means we are attracting the buyers and sellers who are
actively participating in a transactional environment at any given time, be
it buying or selling a property, thus ensuring that we only generate quality
leads for our clients.
“We believe estate agents are actually suffering from ‘lead
fatigue’ in that they are having to follow up on more leads
than they can handle in a day, with a large majority of these
leads amounting to nothing more than speculative interest from an
individual who is not ready to transact. This results in genuine buyers
and sellers being overlooked by agents as they are too busy dealing
with the high volume of unqualified leads they receive,” says Asher.
“Unfortunately, this in turn reflects negatively on the estate agency and
unfortunately most are still not fully aware of this.”
What makes Property Junction different from other portals is that it features
properties advertised each week from all of the group’s print publications.
This ensures that the focus for the visitor remains on properties that are
actively on the market with all old properties automatically removed.
Where to next for Property Junction? “As far as technology is concerned,
it is a known fact that mobile search volume is fast overtaking desktop, so
our plans for the near future include an updated website that will allow for
a device agnostic browser experience for our visitors. We are also placing
emphasis on providing digital marketing opportunities for our estate
agency clients that will increase their effectiveness in the communities they
serve by establishing a local digital presence. We firmly believe that
the industry will benefit further by taking a more active role in the area
in which they operate. We are therefore in the process of rolling out a
business model that sees ownership of our portal’s presence at community
level transferred to the agents within that community. We already have
a very successful model in our print business so it makes perfect sense to
align the online business accordingly.”
Visit www.propertyjunction.co.za or for more information or contact
Dave Asher on 021 447 7130 or [email protected].
With so many portals out there to choose from, it is important to think of
who you are targeting and which portal best suits your clients’ and your
business’s needs. Every portal has its strong points and it is an industry that
is growing fast and constantly changing to be better, making sure that the
property industry is one of the leaders in using digital technology to meet
clients’ needs. If you haven’t thought about using a property portal yet, IOL,
Private Property, Property 24 and Property Junction are setting the bar high
when it comes to property portals and will more than meet your needs.
www.propertyjunction.co.za
BY ANGELIQUE REDMOND
00452 BETTERBOND - REWARDS APP - EAR PIECES RP3.indd 1 2014/08/13 2:18 PM
CRIMINALS IN THEIR TRACKS
STOPA social media site is going all out to ensure that agents are aware
of industry-related criminal activity in areas across the country
Page 38: STOP CRIMINALS IN THEIR TRACKS
Page 39: STOP CRIMINALS IN THEIR TRACKS
The fact that agents allow strangers into their cars and invite groups of
unknown people to visit houses on show are just two reasons why the
job could be classified as risky. The murder of a Ballito estate agent in
2007 highlighted just how vulnerable agents can be as they go about
their day-to-day activities. In this tragic case, agent Lynne Hume had been
asked to visit a luxurious unit in an upmarket estate to meet with the tenant,
Muziwendoda Kunene, to discuss problems with the rental property. The
next day, her body was found in her burnt out vehicle in the Free State.
While this case may be extreme, there is little doubt that given the crime
rate in this country, agents have a whole lot more to worry about than
earning their commission, and although many have changed the way in
which they work, criminals always seem to be one step ahead.
Unfortunately, estate agents are more vulnerable than ever
and are being forced to take more and more precautions
in order to prevent themselves – and in some cases, their
clients – from becoming yet another sorry crime statistic.
One of the latest initiatives aimed at helping real estate
agents fight crime involves a Facebook page called ‘Estate
Agents on eblockwatch’. The site is restricted to agents
and is a platform on which they can share their stories of
criminal activity in the areas in which they operate. We
are not talking about general crime here, we are talking
about exposing those who specifically target estate agents
and the properties they are selling. The page was launched in April this
year and within two weeks, 147 agents had already joined. To date, the
site has been responsible for bringing at least one criminal to book.
Nicknamed ‘Steve the Shopper’, this devious man would surf the Internet
property pages looking for homes to target. He generally selected
upmarket homes and would make an appointment to view with an agent.
Once there, he would often use a friend to distract the agent while he
wandered from room to room, taking photographs and opening cupboard
doors and dressing table drawers, helping himself to anything of value.
He was so brazen that there were times when he would go back to a
room, telling the agent he wanted another photograph before stealing
yet more items.
“When we were initially alerted to ’Steve’ and his activities, he was
targeting Fourways Gardens, Broadacres, Mondeor, Little Falls, Bassonia,
Kyalami Estates, Centurion and other upmarket areas,” says Stella van
Niekerk, office manager for the ChernoDavis Properties group, who
manages the site.
“I’d received an email about this thief who liked to go ‘shopping’ with
his accomplice at show houses. Although he always used the same email
address, his cell number often changed. I brought this to the attention
of André Snyman, the founder of eblockwatch, and estate agents on
eblockwatch groups, and we started gathering as much information
as we could about this man.”
It appeared that ‘Steve’ had been quite a busy chap, and posts from
agents and agencies around the Gauteng area highlighting his modus
operandi started to appear on the site right from the start.
The information was handed over to the authorities, who
then published an article accompanied by a picture in a
well-known newspaper. ‘Steve’ was arrested at the Silver
Lakes Estate by two alert security guards who recognised
his picture, but unfortunately he was released due to
lack of evidence. Three days later he was rearrested at
Midstream Estates and now faces a number of charges.
While it may be impossible to know how long ‘Steve’ had
been operating, one thing is abundantly clear – he was
caught very soon after his antics were exposed on social
media. This clearly indicates just how powerful a site like
Facebook can be, and given the number of agents operating in the field,
how effective banding together to fight crime is.
There are many ‘Steves’ around and agents who are forewarned to be on
the lookout for a particular individual or who are aware of new ways in
which criminals are operating will inevitability stay one step ahead and
will be better equipped to deal with the problem.
The fact that the page remains accessible only to agents is vital as it stops
conmen and other criminals from perhaps using the information posted
there for nefarious purposes. The benefits of joining the page speak for
themselves and, obviously, the more agents who join and report crimes,
the better. Crime has no borders and the beauty of social media is that
it allows agents from all over the country to report any illegal goings-on.
While there are some who believe that it’s only important to report crimes
on pages linked to their own area, van Niekerk points out that she had
“I’D RECEIVED AN EMAIL ABOUT THIS THIEF WHO
LIKED TO GO ‘SHOPPING’ WITH
HIS ACCOMPLICE AT SHOW HOUSES.”
Page 40: STOP CRIMINALS IN THEIR TRACKS
been informed of cases in Ballito in KwaZulu-Natal and Hartbeespoort
Dam in North West, which bore a striking resemblance to ‘Steve the
Shopper’s’ modus operandi.
Van Niekerk notes that it is imperative for agents to band together in order
to share information. “It is very important for us to protect our reputations
and to inform each other of potential criminal behaviour affecting our
industry. We need to take a stand against crime. I was held up at gunpoint
at a show day in November 2005 and I had no support or assistance in
finding those responsible. I have decided to take a stand and request my
colleagues in the industry to join me in making a difference. The bigger
the team of agents involved, the more information about incidents and
culprits will be shared. André will immediately be informed and we will
gather as much information as possible and hand it over to the authorities.
We have dedicated officials in the group who will react when an agent
needs assistance. We have also established an estate agent’s WhatsApp
group to alert agents who are on show or taking buyers to private
viewings what they need to be on the lookout for,” says van Niekerk.
“Messages are sent with vehicle details including registration plate number
(if available), how many occupants, modus operandi and sometimes if
the perpetrator/s have been caught on CCTV at entrances to estates or in
homes, those pictures will be issued to the agents to assist in getting more
information. We encourage all estate agents to become part of this very
effective group.”
The Facebook site makes for some interesting reading. Erring tenants,
‘heavy breathers’ on the phone and a particularly nasty incident involving
a person who gained entry to a home by pretending to be an agent and
who then assaulted and robbed the homeowner have been reported.
Another case reported involves a man who makes appointments to view
empty rental properties then ties the rental agent up before making off with
handbags, cell phones and jewellery.
While it goes without saying that not every criminal will be caught, the fact
that this information is being shared and agents alerted to these activities
will allow the agent to protect both himself and his clients.
Let’s be honest here, it’s not only about protecting agents – homeowners
are not going to look kindly on any agent who allows a thief into their
homes during a show day. Agents’ reputations are at stake here and it is
in the best interests of all concerned for agents to be aware of any dodgy
goings-on in a particular area.
“The impression the seller is left with when their valuables go missing is
very negative,” says van Niekerk. “In my opinion, the agent and the seller
are both to blame. The agent needs to advise the seller to lock valuables
away and the seller needs to do their part by being sensible as well.”
Although agents have been warning clients to lock valuables away for
years, sellers do slip up. We are all human and although a seller may
have every intention of not leaving valuables lying around, it is still their
home and old habits die hard.
Van Niekerk adds that agents need to remember that a criminal is only a
successful criminal if he can get away with the crime. Use your imagination
to make this difficult for them, not necessarily by using physical force, but
by gathering as much information and evidence as possible.
Sellers are understandably becoming more reluctant to put their homes on
show. However, it stands to reason that a seller will feel more comfortable
• Encourage sellers not to leave anything tempting lying around.
• When possible, let the security guard at the gate know that
you are sitting at a show day.
• Walk through the property before the start of the show day
and lock away valuables that may have been left out in the
open. Don’t forget to put them back once your show day
has finished.
• If you have information about criminals in the area who should
not be allowed into the property, share as many details as
possible, including the make of car and registration number.
• Ensure that buyers’ information is well documented on arrival,
including names, cell phone numbers and email addresses.
• Ask a security guard or friend to take pictures of potential
buyers’ cars and licence discs on arrival if there is no CCTV
camera at the main gate of the complex.
• Agents should consider connecting their phones to the
eblockwatch CommUnity panic button.
• Don’t leave the security gates open if you are sitting at
a show day.
• Keep pepper spray handy at all times and make sure that it is
easily accessible.
• When showing a vacant property or a stand, sit outside the
property in your car and let viewers go through and then
come back and ask you questions. By doing this, you will be
able to get away if the situation turns sour.
TIPS FOR DETERRING CRIMINALS
BY LEA JACOBS
“IN MY OPINION, THE AGENT AND THE SELLER ARE BOTH TO BLAME.
THE AGENT NEEDS TO ADVISE THE SELLER TO LOCK VALUABLES AWAY AND THE SELLER NEEDS TO DO THEIR PART BY BEING
SENSIBLE AS WELL.”
Page 41: STOP CRIMINALS IN THEIR TRACKS
dealing with an agent who is watching their back by having as many
safeguards in place as possible.
“As agents, we act on behalf of sellers and buyers. In order to gain the
confidence of sellers, it may be a good idea for the agent to advise the
seller that he is part of the eblockwatch community support programme.
Point out that buyers will be monitored – if possible, on registration –
by having their pictures taken for security purposes. This last point
could prove contentious, but as much as we don’t want to intimidate
buyers, the safety of sellers, their property and their valuables are
our first priority.
Of course, criminals are going to become more inventive
and, as such, agents have to become more proactive about security.
Communication and teamwork is the name of the game and all agents
are urged to keep abreast of the latest trending criminal activities and
report any criminal behaviour that comes to their attention.
For further information go to http://www.eblockwatch.co.za/
HOW DO HOME LOANS MEASURE UP?
Page 42: FINANCE & FIGURES
Property Professional gathered information from mortgage originator, ooba,
which gives insight into bonds and buyers comparing figures from the
SECOND QUARTER OF 2013 TO THE SAME PERIOD THIS YEAR:
R914 089
R682 324
R771 602
15.6%
(R142 487)
R950 507
R737 768
R820 589
13.7%
(R129 918)
AVG PURCHASE
PRICE
AVG PURCHASE PRICE OF FIRST-TIME BUYER
AVG APPROVED BOND SIZE
AVG DEPOSIT (AS % OF PURCHASE PRICE)
%
- 12.2
+ 6.3
+ 8.1
+ 4.0
2013 QUARTER 2: APR – JU
N 2013
37
37
47.4%
26.7%
46.2%
27.0%
70.4%
75.2%
2014
%
RATIO OF APPLICATIONS DECLINED BY ONE LENDER BUT APPROVED BY ANOTHER
EFFECTIVE APPROVAL RATIO
AVG INITIAL DECLINE RATIO (FIRST BANK DECLINE)
AVG AGE OF APPLICANT
+ 0.3
- 1.2
- 4.8
QUARTER 2: APR – JUN 2014
Page 44: DEVELOPMENT IMPACTS THE REAL ESTATE INDUSTRY
DEVELOPMENT IMPACTS THE REAL ESTATE INDUSTRY
It is an exciting time for the real estate sector as private capital is in huge demand for development and investment, yet competition for prime assets is intense
Emerging market reports place a strong emphasis on the forces behind
potentially prosperous real estate industries. Investors lured by sound
economic fundamentals require cohesion between public and private
capital expenditure to drive growth in private industries, such as
construction and development.
The PricewaterhouseCoopers (PwC) Real Estate 2020 Building the Future
report sheds new light on the impact of ongoing infrastructure in developing
countries. The construction industry’s role to facilitate the constantly
changing needs of owners and tenants is emphasised. Far-reaching effects
of well executed state budgets for infrastructure improvements that correlate
with population growth, and not necessarily new building projects only,
become more visible.
PwC forecasts shifts in population growth, as well as changing
demographic trends to result in a greater need for new and different
real estate by 2020 and beyond. Massive growth by 2025 will see
over 60% of all construction activity around the globe taking place in
emerging markets — up from just 35% in 2005. Between now and 2025,
the construction sector is expected to benefit from sub-Saharan Africa
becoming the second fastest-growing region, behind emerging Asia.
Potential growth in Nigeria alone is forecast to have catered for almost
20 million new homes by then, compared to 2012.
The positive impact of infrastructure — of roads, public transport and
electrification - on employment, housing, education and medical facilities,
such as the acceleration of all round economic productivity and long-term
growth for investors, cannot be underestimated. The role of construction
companies, who compete at global standards in their bids to participate in
cross-border electrification, road, telecommunications and water projects,
Page 45: DEVELOPMENT IMPACTS THE REAL ESTATE INDUSTRY
is also emphasised in the paraphrased and acknowledged McKinsey
Global Institute (MGI) Infrastructure Practice 2013 report.
Win-win benefits of the improved socio-economic circumstances of potential
property owners and tenants to real estate markets in emerging economies
are clearly defined in this report. Studies have shown, for example, how
a 9% increase in female employment followed the electrification of a
specific South African rural region. This simple yet necessary solution
allowed local women to explore microenterprise by leaving their houses
to earn an income. However, both local and foreign direct investment
that would facilitate construction and development of this magnitude relies
on sound government policies that prioritise sustainable planning and
implementation.
Investor confidence was reflected in South Africa’s post recession real
estate market in 2013. Expansion and new development brought
cross-sector profits, backed by risk-averse investors. Current and future
investors, however, are increasingly facing up to
challenging trading conditions. The financing of large
construction projects take place amid a cutting edge
environment and uncertainty. In the words of Frank
Berkeley, managing executive at Nedbank Corporate
Property Finance (NCPF), who continues to finance
massive projects: “In spite of our fragile economy
facing further setbacks, the 2014 fortunes of the South
African property market inextricably lies on the country’s
economic performance and other markets.”
Fears of a lacklustre investment environment due to
delayed infrastructure projects are substantiated by the
construction and development industries. Future growth
is inhibited by slow transformation, limited state funding
and regulatory hurdles. Local operators now have access to alternative
options in resource-rich sub-Saharan African regions, where investment
opportunities beckon within the fast-growing power generation and
oil and gas industries.
Local civil engineering companies, such as Murray & Roberts, which is
increasingly focusing on non-core assets, are exploring contracts beyond
borders. Company chairman Henry Laas says infrastructure build is
fundamental to economic growth, and that the private sector is leading the
way in infrastructure spending, with little public sector expenditure on big
construction projects.
On the upside, however, is the growing trend of the aerotropolis mixed-
use concept, now becoming a mainstream concept in aviation planning.
Global developments of this expanse and capital investment have brought
substantial economic and social benefits to airport owners as well as local
businesses and communities. The first development of its kind in South
Africa is taking place through the consortium-led development
of global consulting engineering firm Aurecon at the Ekurhuleni OR
Tambo Aerotropolis in Gauteng. This multi-disciplinary consortium offers
industry advantages of previous planning and infrastructure projects in the
Ekurhuleni area.
Long-term planning objectives relate to the economic benefits derived
from the integration of manufacturing and residential areas within close
proximity of the airport. Development criteria include questions regarding
the adequate addressing of the city’s socio-economic upliftment. Land
use issues and transport facilities have to facilitate maximum efficiency of
both the people and freight in the region. Future growth is predicted to
ensure the economic wellbeing of Gauteng and Ekurhuleni’s businesses
and community, from the smallest informal trader to large multinational
companies. The impact of predicted CO2 emissions on the environment
formed part of the planning criteria of this project.
The emphasis on large-scale mixed-use development is highlighting
impacts on other sectors of the commercial real estate
market, such as the global phenomenon of cutting edge
technology on the office sector. A fast diminishing need
for office space over the next few years is expected
to see less office development, according to the PwC
report. As telecommuting increases and office culture
becomes more accepting of video conferencing rather
than meetings, and as digital files replace paper, more
time will be spent working from satellite and home
offices. “These trends are likely to alter real estate
economics more than is currently anticipated,” says
Nedbank’s Berkeley.
He has expressed particular concern about the potential
for office vacancies to increase notably in the coming
years. “This is on the back of the ongoing consolidation trend that is
seeing increasing numbers of large organisations constructing their own
centralised buildings into which they are relocating many of their staff that
were previously housed in leased offices.”
The construction industry also benefits from institutional backing of product-
specific requirements of prime tenants within the vehicle manufacturing
industry. Job creation and economic productivity are long-term benefits
facilitated by NCPF’s financing of the refurbishment of the R230-million
motor vehicle manufacturing facility and joint venture of Iveco South Africa
and Larimar Group in Rosslyn, Pretoria.
Industry opinion is that South Africa’s real estate business is set to benefit
from the construction industry’s focus on local knowledge, specialist
expertise and good government relations.
A FAST DIMINISHING NEED FOR OFFICE SPACE OVER THE
NEXT FEW YEARS IS EXPECTED TO SEE LESS OFFICE DEVELOPMENT,
ACCORDING TO THE PWC REPORT.
BY ANNA-MARIE SMITH
Page 46: WHERE ARE THE HOUSING GAPS IN SOU TH AFRICA?
WHERE ARE THE HOUSING GAPS IN SOUTH AFRICA? There were roughly 52.98 million people living in South Africa according to estimates by the South African government mid-year in 2013. And that equates to a lot of people with different housing needs, from students and first-time buyers to people who cannot afford housing and gap housing. Looking at the different housing sectors in the real estate industry, where is there a demand that is not currently being met?
Page 47: WHERE ARE THE HOUSING GAPS IN SOU TH AFRICA?
STUDENT HOUSING
While many universities offer accommodation to new and existing
students, this is often based on need and there is normally more need
than actual housing. Dr Andrew Golding, chief executive officer of Pam
Golding properties, says: “Universities and technikons, i.e. tertiary
institutions, are growing their numbers of students exponentially and, as
a consequence, accommodation for these students is under pressure. It is
no coincidence that university towns, such as Stellenbosch for example,
are some of the best performers in the South African residential property
market. And with the number of students set to rise yearly and new
universities being built, this need for student housing will continue.”
But is it worth investing in student housing? Could this
be why there is such a need for this particular type of
housing? Michael Bauer, general manager of IHFM
property management company, says: “There will
always be a need for student housing. While universities
such as UCT are active and aggressive in finding their
own buildings to use as student accommodation, they
are trying to find their own land to develop and their
limitations are the funding, procurement and investor
base for this. There is, therefore, a shortage in all the
provinces in South Africa. The problem from an investor
point of view with regards to student accommodation is
that it becomes a purpose-bound building. The layout
needs to be different from the traditional apartment
block as single bedroom/bachelor units are required.
There are companies specialising in this type of
accommodation, where they convert older buildings into student rooms
and run the rental pool and manage the building. They would have a
lease agreement with the universities and manage the rentals. The returns
on these units are very good, but the obligations on the leases here are
much more than normal renting, such as higher security, high speed
Internet connections, contract cleaning, etc. Investors in this type of
accommodation are usually getting 8% to 9% return.” While returns may
not be as high as in other areas of housing, with such a desperate need
for accommodation, this is one sector of the property market that sees
steady returns as there will always be a need for this type of housing.
A NEW CLASS OF PROPERT Y BUYERS
Looking at housing in South Africa and the millions of people the
property industry currently serves, there is one subset that remains a grey
area – those who have property, but don’t have actual ownership proof.
Seeff chairman Samuel Seeff says: “One of the remaining problem
areas is that many owners of homes in the historical townships still do
not have title deeds. This is something that needs to be addressed.
Obviously, there needs to be some proof provided of such ownership,
but it is vital that, if proven, these owners are given title deeds.” By
obtaining title deeds these homeowners would then be able to enter the
property market and start transacting. This could act as a springboard,
allowing more people to enter the property market; these
homeowners could sell their property to people who
cannot afford high property prices and then buy better
homes, creating a whole new class of property buyers
and sellers.
LOW INCOME HOUSING
Renney Plitt, managing director of Afcho, says: “Most
sectors of the housing market are being addressed
where it make sense for the private sector to develop
and invest. This applies to both sale and rental
developments across all spheres, including retirement,
gap and students. This would apply for earnings levels
from about R6 000 upward in rental and about R8 000
in sales. The problem we face is a desperate shortage of
housing in the levels below that. The financial models
don’t work for the private sector or their bank funders, and council in
particular and government have failed in this area of housing provision.
This is exacerbated by high council service charges that negatively
impact on affordability.”
This sector of the population remains hugely underserved and is one
of the largest in South Africa. There are millions of people who live in
townships or illegally built structures on land because they simply cannot
afford housing, or live in dilapidated buildings as they cannot afford
high rents. While the government has, up to a point, attempted to cater
“ONE OF THE REMAINING
PROBLEM AREAS IS THAT MANY
OWNERS OF HOMES IN THE HISTORICAL
TOWNSHIPS STILL DO NOT HAVE
TITLE DEEDS”
for these individuals, it has largely failed to supply adequate housing
to the majority.
Asrin’s commercial director, Shiraaz Hassan, says: “A critical problem
remains access to finance; the lending criteria is still too tight and
while now is an opportune time to buy, this is simply not happening
in many instances as buyers are unable to access finance. Another
problem relates to the deposit requirements for first-time buyers. What
often happens is that in an attempt to secure their own home, first-time
buyers will take out a personal loan to finance their deposit at a higher
interest rate than the bond rate; something that just serves to put people
further into debt. The sector could be improved with active participation
from government into public/private partnerships, making more
land available within high demand nodes, expediting the rezoning
and plan approval process with local authorities, and simplifying the
application process in terms of state housing subsidies. The private
sector has the technical expertise to deliver affordable housing
projects, however it would require the assistance of government in terms
of funding or considering development proposals where government
realises the land price upon completion of the development.”
RETIREMENT HOUSING
Retirement housing is another sector that urgently needs to be addressed.
The number of elderly far outranks the amount of housing provided
for them. Michael Bauer says: “In the lower and lower-middle income
brackets, this is where there is lack of supply, and this needs to be
addressed soon. This is possibly the next major problem that government
needs to address as providing retirement housing is not enough. There
has to be the follow-up care, food, nursing and communal facilities
available. As the economy continues apace and the next generation
comes through, there will be a serious need for decent retirement homes
at the prices that lower income earners can afford. The majority of these
people move in with their children.”
Retirement housing, much like student housing, is not as simple as buying
and selling, and requires more in-depth knowledge, but one model
that seems to perform very well is retirement villages, much like gated
communities for the elderly, which provide care and expertise. Bryan
Biehler, managing director of Huizemark, says: “There is a serious
demand for retirement housing in Gauteng as many homeowners are
60+ and the demands of standard residential housing are becoming
more onerous, such as security, maintenance and medical facilities.
The costs keep rising, whereas generally in schemes, the costs come
down as they are shared by many.”
LIFEST YLE ESTATES AND THE LOCK UP AND GO
This still remains the most sought after property in real estate. With crime
still a major issue for many South Africans, gated communities and lock
up and go structures remain the most popular and in need. Bryan Biehler
says: “High density and communal housing where the focus is on a lock
up and go lifestyle, focusing on security, low maintenance and easy
access to transport routes and places of work, is one of the most popular
in South Africa. People want to live, work and play close to their place
of residence. Traffic flows, time travelling and costs are becoming bigger
influencers of buying motivation, which will see this type of housing in
demand.” Perhaps there is an opportunity to see more group housing
complexes being built that would not only service the need for lock up
and go properties, but could also be used for affordable housing and
student housing. This is where developers and investors need to work
together to create multipurpose housing complexes that cater to a variety
of needs in the housing market.
The gaps in the housing market are quite clear; there is a need and
demand for student housing, which will always be there and will only
continue to grow, and there needs to be more involvement from the
government to ease the demand for low income housing, which is
critical. Retirement housing has seen an increase in demand and this is
an opportunity for investors, along with group housing complexes that
would service a variety of the housing market. With the demand set
to grow, there are exciting and interesting opportunities available
for savvy developers.
BY ANGELIQUE REDMOND
“IN THE LOWER AND LOWER-MIDDLE INCOME BRACKETS, THIS IS WHERE THERE IS LACK OF SUPPLY, AND THIS NEEDS TO BE ADDRESSED SOON. THIS
IS POSSIBLY THE NEXT MAJOR PROBLEM THAT GOVERNMENT NEEDS TO ADDRESS AS PROVIDING RETIREMENT HOUSING IS NOT ENOUGH. “
Page 48: WHERE ARE THE HOUSING GAPS IN SOU TH AFRICA?
For the 10th year in a row End User Finance –Coenraad Legassick – was crowned Champion ofChampions, receiving top honours as the NationalIndependent Originator and Regional winner Pretoria.
Sanette Payne from Payneless Bonds was awardedTop National Independent Broker.
MortgageMax New Comer of the Year award wentto Ivy and Fanie Dahms.
In August, the DoubleTree at Hilton Zanzibarwelcomed the MortgageMax Top Achievers.Standard Bank once again sponsored theawards trip where the top national performerswere treated to sunny, warm, sunbathingweather, island style beach braai’s, dhows’sailing across crystal clear water and swimmingwith dolphins.
To further add spice to the weekend, theStandard Bank and MortgageMaxManagement team recognised their BusinessPartners’ achievements with a fun filled “Blackand White” Awards Evening.
“Congratulations to all of our winningbusiness partners! We thank you for yourcontinuous support in making MortgageMaxthe number 1 Independent Originationcompany in South Africa”, says Jors vanNiekerk, CEO MortgageMax.
Spice Island for MortgageMax Champions
Top Regional Winner KwaZulu Natal: MortgageMaxDurban Property Finance – Dinesh Chetty.
Top Regional Winner Cape Town - MortgageMaxCommercial Mortgage Company - Marius Vivier andHugo Vermeulen.
Top Regional Winner Johannesburg - MortgageMaxExclusive Home Loans – Graham Moodie.
MortgageMax September 2014_Layout 1 2014/08/13 12:59 PM Page 1
Page 50: PROPERT Y PROFESSIONAL NEW AGENTS ON THE BLOCK
SEEFF, CIT Y BOWL
BRYAN GINSBURG
WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?
I have always viewed the industry as a challenging one. Each situation
and circumstance with each and every deal or client is unique, and the
challenge of coordinating all these aspects, namely the understanding and
implementation of socio-economics, is of major interest to me
WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST
CHALLENGING ASPECTS OF THE JOB?
The most enjoyable and challenging aspects of my job coincide with one
another. A property is fixed – it is the constant factor. The challenge is the
variable, ultimately the buyer and seller. It is absolutely enjoyable dealing
with each unique personality, need and realistic view, and challenging
matching these unique personalities with each individual deal.
WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE
AGENT/BROKER AND WHY?
The ability to listen and learn. Listening to the ever-changing property
environment is paramount and consistently educating myself is important
to ensure that I am able to enter a negotiation with solid tools and
powerful knowledge.
WHAT ARE SOME OF YOUR CAREER GOALS?
To become the top of my game in a partnership with a strong brand,
ensuring that I am the first port of contact for my buyers and sellers by
providing a differentiated service of integrity, market knowledge and
seamless service.
people on a daily basis, but the most rewarding aspect of the job is most
certainly facilitating an agreement between buyers and sellers. The most
challenging aspect for me personally is trying to educate sellers to market
their properties at a realistic price that can compete in the marketplace.
WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE
AGENT/BROKER AND WHY?
In my opinion, the most important characteristics that an agent should
possess are honesty and integrity. My reason for this is that every client,
whether buying or selling, has the right to be informed of current market
conditions in an open and honest manner, so that they themselves can
make informed decisions relating to the buying or selling of the property.
WHAT ARE SOME OF YOUR CAREER GOALS?
My short-term goals are definitely to improve my market share in the
Strand as well as to become a household name in the area. My long-term
goal is to become a principal of either my own company or a franchise
owner of a successful real estate company.
WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?
After running the family business for a couple of years, the inevitable
happened; we sold. So there I was, left in the ‘wilderness’ somewhat
and not knowing where to from there. My father, who had always had a
love for the property industry, made the suggestion: Why not become a
property professional? Not knowing what to expect, I decided to give it
a go, and today I can confidently say that it was the best decision
I have ever made.
WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST
CHALLENGING ASPECTS OF THE JOB?
I definitely do enjoy the aspect of meeting and working with different
SEEFF, STRAND
ALTEN VERMAAK
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WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?
My father has many friends involved in the property industry and it
definitely intrigued me. I had a discussion with a close family friend,
Maureen Nel, who suggested that I should get involved in the property
industry and recommended commercial property. She even helped me by
arranging an interview with JHI Properties and I was lucky enough to be
appointed to the position. This is a great opportunity and I will forever be
thankful to her as well as my father.
WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST
CHALLENGING ASPECTS OF THE JOB?
It’s very satisfying finding your client the perfect property. The most
enjoyable part of my work is when you have placed a large tenant in a
prominent location and drive past afterwards knowing that you played
a part in their success. There isn’t much I don’t like about my job, except
perhaps for the paperwork. I prefer being out seeing clients and putting
deals together.
WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE
AGENT/BROKER AND WHY?
You need to be optimistic about every deal you negotiate. Never give up,
keep trying until the deal is concluded. You also need to be proactive and
professional to be successful. Never get despondent, just keep working
hard and smart – and success will follow you.
WHAT ARE SOME OF YOUR CAREER GOALS?
I want to make a huge success of my life. I want to do everything to the
best of my ability. Always strive for better. And, currently, to become the
best broker in the country.
property market and how it changes and what influences it.
Challenges: Dealing with difficult clients. Banks’ difficult lending criteria,
leading to many unsuccessful bond applications. Attaining sole mandates
in a seller’s market where there is very little stock.
WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE
AGENT/BROKER AND WHY?
Someone with great people skills and a heart for helping people find and
sell their homes, which I believe is quite a personal affair and requires a
certain kind of sensitivity. The agent needs to able to self-motivate and be
optimistic in difficult times. Being proactive is a must!
WHAT ARE SOME OF YOUR CAREER GOALS?
I aim to create a reputation for myself as being successful in my area as
well as professional and trustworthy. Through achieving this, my business
will grow as referrals come back to me time and again. My attitude is
not to chase the money, but rather to chase success and have the wealth
follow automatically from there. That way, you remain focused on the
people you serve, which is what being an agent is about.
WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?
I began as a PA to an agent and soon developed a keen interest in the
industry. I enjoy working with people. Also, I require an occupation that
is flexible in terms of time on account of me being a single mom to a
special needs son.
WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST
CHALLENGING ASPECTS OF THE JOB?
Enjoyable: Connecting with people. Training sessions involving different
professionals linked to the industry, such as economists. Understanding the
SEEFF, RANDBURG
DANNI COLEMAN
Page 52: PROPERT Y PROFESSIONAL NEW AGENTS ON THE BLOCK
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Page 54: PROPERT Y PROFESSIONAL TOP PERFORMING AGENTS
SOTHEBY ’S INTERNATIONAL REALT Y, CLIF TON
TANYA JOUBERT
WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?
1. Decide what you what to achieve and why.
2. Make a definite plan to get there.
3. Work hard to build relationships with people who can help you reach
your goals.
WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR TOLD
YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY?
The fact that you have to work crazy hours. Real estate is a 24/7 job
and you have to be willing to share your time with clients at all hours.
WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD
HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY?
Whatever technology enables you to keep up to date with usable
information. Having facts and figures at your fingertips is vital for
success.
DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD?
PLEASE TELL US ABOUT IT
My first buyer was from out of town and wanted to meet some
Capetonians, so I arranged a summer soirée at a friend’s house and
the buyer end up purchasing that property.
WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT
MAKING A SUCCESS IN THEIR CAREER IN PROPERTY?
Focus on one area and ‘own’ it. Know it backwards, forwards and
sideways, and as your reputation grows you will become the agent
of choice in that area.
CHAS EVERIT T INTERNATIONAL, GLENVISTA
MARVELOUS MAHLANGU
WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?
My top secrets for success are passion, dedication and commitment.
WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR TOLD
YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY?
I wish I had known from the start that one should invest some of each
commission payout and save because in this industry we have no salaries
WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD
HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY?
The most vital tool an estate agent can have in today’s market is
knowledge – about interest rates and home loans, market trends, area
demographics and pricing, for example, and the more specific, the better.
DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD?
PLEASE TELL US ABOUT IT.
The first property I sold was in Naturena Ext 15. I listed it at R295 000 in
February 2005 and about three weeks later I received an offer of R270
000, which the seller accepted. I remember being very nervous during
the offer presentation, but, fortunately, I had asked one of my senior
colleagues to go with me and after the seller accepted, the feeling was
electric. I didn’t even think about how much I was going to make, I just
wanted to get the deal through as soon as possible. I also knew then that
this was the industry I wanted to be in, and after I sold two homes the
next month, I never looked back!
WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT
MAKING A SUCCESS IN THEIR CAREER IN PROPERTY?
My advice is to stick to the basics, be consistent, don’t try to take
shortcuts, acquire more knowledge about the market and be
passionate about what you do.
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Page 56: PROPERT Y PROFESSIONAL TOP PERFORMING AGENTS
JHI PROPERTIES, PRETORIA, GAU TENG
MARITA MEYER
WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?
1. Lateral thinking. Continuously applying your mind to solving the
property ‘puzzles’ presented to you – finding the pieces, matching them
and completing the bigger picture.
2. Being prepared. Taking time to know your stock, knowing your market
and being out there where the clients can find you. Then act on it.
3. I always remember that I am the facilitator only – it is not my property,
nor my money, I cannot force a lease or a sale; and today’s buyer is
tomorrow’s seller, so I do my job with this in mind, as if I am looking
into a mirror.
WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR TOLD YOU
WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY?
I actually received the very best advice from my husband: “Timing is
everything. A person either wants a property or not; that person can
either afford it or not. Get your timing right.”
(And all the rest that goes with it!)
WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD HAVE AT
THEIR DISPOSAL IN TODAY’S MARKET AND WHY?
The proper use of technology – applying tools and systems to your
advantage by keeping in constant communication with your clients, and
keeping them in the loop at all times. It allows you to enjoy the benefit
of 24+ hours a day.
DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL US ABOUT IT.
The first property I sold was part of a difficult, drawn-out divorce
settlement. I had to ask my buyer, a well-known businessman, if the
difference in his offered price versus the asking price would really affect
him in the long run. He raised his offer and it was accepted, although
the transfer took longer than a year to register. I was often asked if I was
tempted to take an advance against my commission – I never did, and it
set the standard and mindset for future business dealings.
WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT MAKING
A SUCCESS IN THEIR CAREER IN PROPERTY?
Find your own style, and develop it into a sought after, unique product.
SEEFF ATLANTIC SEABOARD
ADRIAN MAUERBERGER
WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?
1. Live and play in the area in which you sell.
2. Remain honest and true to yourself, maintain integrity and
professionalism.
3. A high level of know-how and education are vital – this is no longer a
‘divorced housewife’s’ game.
WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR TOLD
YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY?
Your biggest stumbling block and challenge is not your buyers and
sellers, but rather the incompetent competitive agents.
WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD
HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY?
Very high levels of education, statistical and market knowledge, legal
competence and a marketing background – more and more buyers and
sellers are far more sophisticated and require more and more profound
market knowledge.
DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD?
PLEASE TELL US ABOUT IT.
Each sale comes with a story – selling some of today’s most sought after
developments and second hand real estate comes with thousands of
stories – I wouldn’t want to isolate one as the others might be jealous.
WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT
MAKING A SUCCESS IN THEIR CAREER IN PROPERTY?
It is not easy! If it were easy, then everyone would do it. Develop
the passion, live the experience and dream the success!
00453 BB DREAMS LOTTERY PRINT AD (PROPERTY PROFESSIONAL) V1 RP.indd 1 2014/07/31 3:25 PM
Page 58: PROPERT Y PROFESSIONAL TOP PERFORMING AGENTS
PAM GOLDING PROPERTIES ATLANTIC SEABOARD
LYNN PINN
WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?
1. Real estate is not a job, it is a way of life, and one is simply never off
duty. Other peoples’ leisure time is an estate agent’s workday, and you are
always on call, even on the ‘high’ holidays.
2. There is no guaranteed remuneration, so you need a high level of self-
motivation and true passion to make it happen. One has to creative and
innovative in order to fulfil the clients’ needs.
3. The professional estate agent requires:
• A thorough knowledge of your farming area, an understanding of your
market profile and the dynamics of buyers and sellers in the area and a
good network.
• Always be forthright and honest. Never be afraid to say: “I don’t know,
but I will come back to you.”
WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR TOLD YOU WHEN
YOU FIRST STARTED OUT IN PROPERTY AND WHY?
I have always have had an ethical and internal ethos towards any job
that I have tackled. So, from the very beginning of my estate agent career,
my responsibilities were very vivid in my mind, in that I start my working
day early (early bird catches the worm) and work methodically through
the day. Not so long ago, estate agents were perceived to be bored
housewives or retired men, and I could never relate or identify with those
analogies as to me it has always been about integrity to myself and the
company I represent!
WHAT IS THE MOST VITAL TOOL THAT ESTATE AGENTS SHOULD HAVE AT THEIR
DISPOSAL IN TODAY’S MARKET AND WHY?
Up to date intel on sales and pricing so that you can estimate values as
accurately as possible and guide your clients accordingly. In sectional title
sales, it is imperative to have sectional title plans, body corporate and
house rules and minutes of all the body corporate meetings so that you are
able to inform buyers accordingly.
DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL US ABOUT IT.
My first property was a sale on Sea Point beachfront. It was on show
and at 5pm I was walking out of the apartment when a couple arrived,
apologised for being late and asked if I minded opening for them. We sat
for about an hour and chatted. I called the seller to ask if I could offer them
a drink and if we could sit on the balcony and enjoy the view. The next
day I went to see them at their home in Camps Bay, took the offer and
successfully concluded the deal. I was hooked.
WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT MAKING
A SUCCESS IN THEIR CAREER IN PROPERTY?
The industry has become highly regulated and there is a huge emphasis
on education. The EAAB (our regulatory body) has deemed it necessary to
increase the levels of entry into the industry, so to those who would like to
become agents, I suggest you find a position as an intern with a reputable
company that offers good training – and be prepared to work hard.
WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?
The main secret is to stick to the basics, again and again. Next, it is vital
to love your job because your enthusiasm will rub off on people, and
finally, you must be involved in your community.
WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR TOLD
YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY?
I wish someone had told me to start work as an estate agent much sooner.
WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD
HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY?
Your cell phone because you simply must be available to clients all the time.
DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD?
PLEASE TELL US ABOUT IT.
Yes I do because I was so nervous, but it all worked out with happiness
all round. I became friends with the buyers and their little girl wants to be
an estate agent, just like me!
WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT
MAKING A SUCCESS IN THEIR CAREER IN PROPERTY?
Work, work and more work, love people and be absolutely trustworthy.
ANMAR MARAISCHAS EVERIT T INTERNATIONAL, KLEINMOND
Page 56: TECH TOOLKIT
TECH TOOLKITBetterRewards App
AVAILABLE FROM: Free – you just need some data for downloading
LOVE IT: The BetterRewards App from BetterBond
provides easy access to rewards and benefits for
BetterRewards members. Members can log in using
their same credentials as on the web portal and can
clearly view their points balance and tier status. The
app features estate agent tools in the form of savings
calculators, quick calculators and affordability calculators
to assist you on the go. The BetterRewards App allows
easy redemption of points for rewards, access to the
concierge service via a one-press Call Me button that
provides a call back as well as the ability to view Master
Card balances and OTP statements. The BetterRewards
App also provides an in app messaging service to notify
users of card loads and redemption of points.
FEATURES OF THE APP INCLUDE: • Easy view of points balance and tier status
• Live view of OTP points statement
• Check your BetterRewards MasterCard balance
• Use the BetterBond Calculator Suite
• Redeem points for rewards
NO SO MUCH: The BetterRewards App is not
compatible with BlackBerry, however it is compatible
with Android and Apple.
IN A NUTSHELL: If you are a BetterBond member and
have an Android or Apple smart device, then this app
has great features and benefits which may be very useful.
Espresso, Wake up with Sound
AVAILABLE FROM: R399
LOVE IT: This powerful little Bluetooth speaker packs quite a punch. Available in
five fun, bold colours, Espresso is the perfect accessory to any smartphone, tablet,
MP3, PC or Mac with Bluetooth capabilities. The speakers are cordless and have
a range of up to 10 metres from any Bluetooth connection, allowing you to stream
music wirelessly and listen to loud, clear, acoustics on the go. This is really music
with a difference and can be attached to bags, keys or pretty much anything.
The Espresso has a four-hour rechargeable battery, giving the listener the freedom
to enjoy their favourite tunes for hours on end.
NOT SO MUCH: You might have
to check who is around you before
you start blasting your jams around
town – it may be slightly offensive
to some.
IN A NU TSHELL: It is a fun and
powerful little speaker that is great
for all those who just can’t go without
their music.
Fotor Photo Editor App
AVAILABLE FROM: Free –
you just need some data for
downloading
LOVE IT: It has been voted
as one of the top three photo
editing apps for Android and
can take a dull photo and
make it look professional
without needing any photo editing skills at all. The app comes
with an all-in-one camera with six different camera modes,
powerful editing tools, FX effects (filters) for different looks,
collage options as well as fonts and stickers.
NOT SO MUCH: It might be a bit too basic for some, in which
case a more complex editing app/programme should be used.
IN A NUTSHELL: It is so easy to use that anyone can now
transform ordinary photos into professional pics on the go.
Fotor is no Photoshop, but it’s simple, fun and works well for
basic image editing.
Page 57: TECH TOOLKIT
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Logitech Ultrathin Keyboard Cover for iPad mini
AVAILABLE FROM: R1 247
LOVE IT: For those on the go, the Apple iPad mini is one of the most useful
gadgets you could have. The easy-to-use, lightweight tablet is making waves in the
business world and very few are without one. However, typing long emails can
be rather laborious and is trickier on the mini than on the larger iPads – enter the
Logitech Ultrathin Keyboard specific for the iPad mini. Not only are you able to
enjoy a comfortable typing experience, but the keyboard also protects your iPad
mini’s screen. At 208g, the Ultrathin Keyboard mini weighs almost a third less than
the iPad mini and is available in black or white. This Bluetooth wireless keyboard
features EasyType keys for a fast and comfortable typing experience.
NOT SO MUCH: The keyboard only serves as protection for the iPad’s screen
and it doesn’t protect the back of the iPad.
IN A NU TSHELL: Logitech’s Ultrathin Keyboard Cover is possibly the best
keyboard accessory for the iPad mini. If portability and functionality are your game,
then this light, efficient and attractive keyboard will become your new best friend.
Just make sure you carry a separate protective case.
All prices are approximate.
DEVELOPMENT UPDATE
Page 62: DEVELOPMENT UPDATE
RAPID SALES AT NEW FLORIDA HILLS DEVELOPMENTTW Property’s new 58-unit 535 On Snowdon sectional title development
in Florida Hills, Johannesburg has seen an exceptionally fast take-up
by buyers. The development, which has been marketed by the Rawson
Property Group’s Northcliff franchise, is currently 70% sold out. These very
satisfactory sales have been achieved in only six weeks – and the Rawson
Northcliff team now expects to be fully sold out by the end of next month.
535 On Snowdon consists of four free-standing blocks, all three storeys
high, with 180 degree views across the attractive Highveld countryside
interspersed with small koppies.
On offer are one-bedroom units selling from R495 000; two-bedroom,
one-bathroom units selling from R820 000; and two-bedroom, two-
bathroom units selling from R895 000. The most expensive unit
costs R1 025 000.
“However you measure it,” says Petronella van der Merwe, the Rawson
Northcliff team’s residential manager: “these units represent quite
exceptional value. Floor areas vary from 41.5m² to 72.85m² and the
finishes and fittings are all of a very high quality: Granite countertops,
Bosch stoves and extractor fans in the kitchen, modern tiles and cupboards
with a choice of two colour options, Hansgrohe bathroom fittings, ceiling
fans and built-in braais on the patios. The complex will have wireless
Internet availability, a Mircom security system and prepaid electricity
meters in every unit.
Also attractive to buyers, says van der Merwe, is the fact that the area
has good primary and secondary schools, medical facilities (notably Life
Flora Clinic), excellent retail outlets (including a massive Hyperama), golf
courses, gyms and quick and easy access to the Johannesburg ring road.
“Coming on top of a year in which the Rawson Property Group’s Northcliff
franchise has increased its turnover on the same period last year by 25%,
this franchise has shown, yet again, how well suited it is to the average
buyer in Northcliff, Florida Hills and the surrounding areas,” says
van der Merwe.
Not surprisingly, she says, a fairly high percentage of the buyers are
investors who recognise that they will probably be able to achieve monthly
rentals of anything from R5 500 to R9 000 on these units when they are
handed over from April and May 2015.
V&A COMMITS ADDITIONAL R1.5-BILLION TO SILO DISTRICT DEVELOPMENTThe final phase of the V&A Waterfront’s Silo district is on track for an
early 2017 completion at a substantial investment of R1.5-billion. The
district is already home to multiple award winning No.1 and No.2 Silo
developments, and is the location of the Zeitz Museum of Contemporary
Art Africa (Zeitz MOCAA) currently being developed in the Grain
Silo complex. This will bring the total investment by V&A Waterfront
shareholders, Growthpoint and the Government Employees Pension Fund,
managed by the Public Investment Corporation (PIC), to over R2.5-billion.
Four new developments will introduce over 35 000m² of mixed use,
sustainable developments including new corporate offices, a residential
development, a Virgin Active Classic Health Club and a mid-range
internationally branded hotel, plus over 1 050 additional parking
bays. When completed, approximately 2 500 people will work at the
Silo district daily. In a 2012 economic impact study that is currently
being updated, the expected nominal contribution to GDP from future
developments is R28-billion by 2023.
V&A Waterfront CEO David Green says: “With approximately 30% or
180 000m² of the V&A Waterfront property available for development,
the Silo district is our current area of short-term development focus.
Development at the V&A is market led, in response to a demand we have
seen for bespoke commercial offices and urban residential with harbour
and mountain views. The intention is to create a vibrant and mixed use
sustainable district with sustainability credentials that will offer business
opportunities, accommodation, lifestyle options and eateries.’’
The Silo district developments will be focused around the Zeitz MOCAA
that sits at the heart of this district and the surrounding new central
pedestrian plaza – Silo Square – providing a gathering place for 535 On Snowdon
FIND OUT MORE ABOUT A FUTURE WITH US, CALL: JEANNE VAN JAARSVELDT // 071 607 5439 JOINHARCOURTS.CO.ZA
WE CREATE SUCCESS.At Harcourts we have a simple philosophy - we create success.
Everyone who comes into contact with our organisation must be more successful for that interaction. We are committed to helping people achieve their dreams and goals. We know that in order for us to achieve our goals as an organisation, we must help our team achieve theirs. That’s why we focus on providing our people with cutting-edge technology, world-class marketing, industry-leading training through the Harcourts Academy, as well as the systems, support and leadership to be the most dynamic team within our industry.
If you’re looking to join a leading international real estate brand and lift your performance to a new level, then we have the plan for your future. Call us today for a confidential discussion.
WE’VE PLANNED FOR YOUR FUTURE. WITH US.
Page 64: DEVELOPMENT UPDATE
locals and international visitors alike. The district will also build upon
the sustainable pedigree of No.1 and No.2 Silo with all developments
targeting a rating from the Green Building Council South Africa (GBCSA).
This includes working with the GBCSA to develop a new mixed use tool
that will be a first for South Africa. The new developments will sit on top
of the 2 750 parking bay super basement that will house the district sea
water cooling plant and a number of other district services, including
sprinkler tanks, back-up generators and diesel storage, potable water and
gas. The ability of the V&A to provide district wide services, including the
high speed fibre network being rolled out across the entire V&A, enables
the developments and tenants to unlock real sustainable operational
savings, which will ensure that the Silo district will be at the forefront
of 21st century development.
AN OVERVIEW OF THE UPCOMING DEVELOPMENTSNo.3 Silo will offer approximately 10 000m² of residential space in the
form of approximately 75 luxury one- to four-bedroom apartments, all
offering the same environmentally sustainable benefits as No.2 Silo. In
addition to receiving a 4-Star Green Rating from the GBCSA in 2013,
No.2 Silo has just been ranked as the best residential development in the
country by the South African Property Owners Association (SAPOA). The
new No.3 Silo has similar aims and will seek to redefine luxury.
In a first for the V&A Waterfront and the Western Cape, No.4 Silo
will offer a state-of-the-art 4 000m² Virgin Active Health Club due for
completion by early 2016. No.5 Silo will offer 13 500m² of multi-
tenanted office space, and, like all the Silo developments,
aims to achieve a Green Star rating from the GBCSA.
SAPOA recently named No.1 Silo, corporate head office of Allan Gray,
as the overall winner at the prestigious South African Property Owners
Association (SAPOA) Innovative Excellence in Property Development
Awards 2014. It furthermore received SAPOA’s Overall Green and Best
Corporate Office Development Award. No.1 Silo also ranks as the only
South African building to receive a 6-Star ‘As Built’ GBCSA rating, which
signifies ‘World Leadership’ in sustainable development.
No.5 Silo is due for completion by mid-2016, followed by the residential
development, No.3 Silo, in late 2016. A 220-key 8 000m² international,
mid-market hotel announced earlier this year will be housed in No.6 Silo
and will open in early 2017. The operator for this hotel is expected to be
announced in the upcoming months.
To accommodate the anticipated increased traffic into the Silo district,
enabling works are under way to widen South Arm Road, and an
extension of the basement parking area will add an additional 1 050 new
bays to the super basement, bringing the total number of bays to 2 750.
The basement extension is scheduled to be complete by late 2015. Use
of the MyCiTi service is supported and encouraged with the Silo bus stop
already operational.
STRONG DEMAND FOR STUDENT APARTMENTS IN POTCHEFSTROOM CONTINUESAs the first town within the former Republic of Transvaal, Potchefstroom
in the North West province lays claim to many firsts. It is said to be the
first town to offer its residents Afrikaans- and English-medium churches,
it apparently had the first printing press, the first experimental farm and,
interestingly, was the place where the first qualified teacher set up school.
The city’s reputation as an educational environment has remained intact
over the years, and today Potchefstroom is home to a number of tertiary
education institutions, schools as well as numerous research bureaus and
training centres. Potchefstroom is well known for its North-West University
(NWU) Campus, which has a history dating back more than a century
and a long-standing track record for delivering high quality graduates and
conducting pioneering research.
Furthermore, Potchefstroom is known as the North West province’s ‘Home
of Sport’ and serves as the provincial headquarters for many sports
associations. The town has also become a favourite training spot for both
local and international athletes due to its altitude and relatively clean air
as there is no industry nearby.
Chris Renecle, MD of Renprop, says that the university had more than
V&A Waterfront’s Silo district
www.rawson.co.za
INVESTMENT OPPORTUNITY
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20 000 students registered to study on campus during 2014. Currently,
around 75% of students are undergraduate students, meaning they will
more than likely study at the university for a number of years to come.
NWU’s Potchefstroom Campus only has approximately 5 000 beds to
accommodate students within the university residences.
“The need for student apartments in Potchefstroom will continue to grow,”
says Renecle. “The intake of students at the NWU Potchefstroom Campus
has escalated by 14% over the past five years, at around 5% per year on
average. Student apartments have not increased proportionately to student
growth, despite some private sectional title apartment offerings for students
to rent.”
In addition, Renecle points out that application documentation for residence
accommodation needs to be completed six months before the start of
the academic year. Applicants are selected based on academic results,
participation in culture, sport and/or leadership and availability of space.
A shortage of student apartments seems to be an issue on a national
scale. Less than 10% of first-year students can be accommodated at their
universities, while overall there seems to be a shortage of more than 200
000 university beds throughout the country, excluding private tertiary
institutions. This is according to reports earlier this year based on the
Department of Higher Education’s Ministerial Review of South African
University accommodation.
In order to cater to the growing demand for student apartments in
Potchefstroom, Renprop – in a joint venture with Probuild and True North
Developments – will be launching The Hub Campus – Potch, a two-storey
apartment building with 200 apartments, in two phases. This comes on the
back of the success of the Ivy League sectional title development that caters
to students wanting to be within walking distance of the university, which
has an exceptionally high rental demand, and which is now fully tenanted.
Situated just 950m from the NWU’s Potchefstroom Campus, the
townhouses at The Hub Campus – Potch have been designed with funky
interiors that include desks for workstations in the bedrooms. These
sectional title units are available in either one-bedroom, one-bathroom or
two-bedroom, one-bathroom configurations. Ranging in size from around
38m² to 53m², prices for these townhouses start from R559 000.
As security is always top of mind, the apartments at The Hub Campus –
Potch are protected with a number of 24-hour security systems, including
electric fencing, security guards who patrol the property as well as off-site
surveillance and strict access control measures.
Communal facilities include a student centre with entertainment facilities
including a sports lounge and Wi-Fi access. Residents will also have
access to laundromat facilities adjacent to the student centre, with 24-hour
access to washing machines and tumble dryers as well as an external
drying yard. Occupation is estimated for the end of 2015 in time for the
2016 academic year.
“The Hub Campus – Potch presents a phenomenal opportunity for investors
wanting to add to their buy-to-let portfolios, or for parents wanting to
secure accommodation for their children. The strong rental demand is set
to continue as student numbers grow,” Renecle concludes.
Page 66: DEVELOPMENT UPDATE
The Hub Campus – Potch
Go to nedbank.co.za/homeloans for all you need to know, from the loan application to moving in.
Nedbank Limited Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).
STEP 1 APPLY FOR YOUR HOME LOAN
Home loanChapter 8
application process
STEP 2GET A BOND APPROVAL
Home loanChapter 8
application process
STEP 3VALUATION OF YOUR DREAM HOME
Home loanChapter 8
application process
STEP 4LOAN IS APPROVED
Home loanChapter 8
application process
STEP 5BOND REGISTRATION
Home loanChapter 8
application process
STEP 6HOME OWNERSHIP
Home loanChapter 8
application process
Whether you are a first-time buyer or not, we’ll make finding your home sweet home quick and easy with the Nedbank Home Buyer’s Guide. For the full guide and video visit nedbank.co.za/homeloans.
nedbank.co.za
MAKE
HAPPEN
HOME LOANS IN SIX SIMPLE STEPS
9168
9168 Nedbank Buyers guide FULL PAGE 275X230 REV1.indd 1 2014/02/19 3:45 PM
WORD ON THE STREET
Page 64: WORD ON THE STREET
“We would like to reiterate that monetary policy should not be seen as the growth engine of the economy. The sources of the below par growth performance are largely outside the realms of monetary policy.”
Gill Marcus, South African Reserve Bank (Sarb) governor (Fin24: ‘Sarb hikes repo rate’)
NUMBERS T O KN OW
456%According to the latest house price index by the UK Economist magazine, South
African residential property is in high demand, with markets outperforming other global
markets by attaining 456% growth in house prices over the last 13 years.
Fin24 - Rates dent commercial property demand
“We have identified infrastructure development, industrialisation and manufacturing as new game changers. This will be in addition to mining, agriculture and tourism. We have therefore set ourselves an economic growth target of 5% by 2019, and I have no doubt that working together with our social partners, we can achieve this target.”
Limpopo Premier, Stanley Mathabath, delivering his State of the Province Address (SA Commercial Prop News: ‘Limpopo Premier aims to grow the provincial economy by 5%’)
“Surprisingly, residential property is proving to be a better investment choice than commercial property. This is due to the fact that the cost associated with owning residential property is less than commercial property.”
Gary Palmer, CEO of Paragon Lending Solutions (Fin24: ‘Rates dent commercial property demand’)
“City Power welcomes the decision by the regulator to approve all the tariff increase applications submitted by the utility. These tariff increases strike the balance between raising the required capital to improve infrastructure to ensure a steady and uninterrupted supply of electricity, and the economic realities faced by hard-pressed consumers.”
Sicelo Xulu, City Power MD (SA Commercial Prop News: ‘City Power electricity tariffs to rise 7%’)
