Inflation, stagnant salary growth, and high interest rates have made homeownership unaffordable for many South Africans, resulting in rent escalations as demand grows—which is good news for landlords.

On 30 May, The South African Reserve Bank’s (SARB’s) Monetary Policy Committee voted to hold rates, keeping the repo rate at 8.25% and the prime lending rate at 11.75%.

The decision was unanimous. Since the start of the rate hike cycle in November 2021, rates have been hiked by 475bps to the highest levels in 15 years.

Several property experts have called the unanimous decision to hold interest rates as disappointing but expected.

However, what wasn’t expected was Reserve Bank Governor Lesetja Kganyago’s strong indication that the repo rate probably wouldn’t come down at all this year, pointing instead to the second quarter of 2025.

“The stance of the Reserve Bank has been too hawkish. While inflation has moderated, the reality is that keeping the interest rate so high for so long has done little to bring down inflation, largely as it is not demand-driven but rather ‘imported’ into the economy,” said chairman of the Seeff Property Group, Samuel Seeff.

Even Standard Bank recently signalled concern that the level of home loan distress is rising.

This means homeowners will remain under strain for at least the next six months, making it unaffordable for many prospective buyers.

Evidence of this was noted in the latest TPN Tenant Survey Report 2024, which showed that 58% of respondents stated that financial obstacles are the main reason they choose to rent, with 48.1% explaining that they cannot afford to buy a property.

This proves consumers are struggling to deal with high interest rates, inflation, and limited job prospects.

For 9.9% of respondents, a poor credit record is a barrier to purchasing a property.

Additionally, due to the high expenses associated with homeownership, 11.4% of renters believe it is cheaper to rent, while 2.2% do not want to take on the debt of owning a property.

Good news for landlords

While being tough for tenants and wannabe homebuyers, the current market is a good news story for landlords.

The unaffordability of houses has meant that the demand for rentals has increased substantially since 2021, similar to when the SARB’s MPC started the rate hike cycle.

According to the latest Rode’s Report on the South African property market, flat vacancy rates nationally in South Africa have continually dropped from over 10% in 2020 to 7.9% as of Q1 2024.

This, in turn, has resulted in escalating rentals for landlords, with PayProp’s Rental Index Annual Market Report—2024 Edition noting that the average rent in South Africa sits at R8,598—an increase of R368 year on year and R147 above the previous quarter (Q3).

This trend doesn’t seem to be going away anytime soon, as TPN’s survey shows the majority of tenants aren’t looking to own property in the near future.

The survey showed that only 29.2% of tenants are considering taking the property plunge within five years.

However, the report warned that landlords must be mindful of the prevailing economic conditions.

TPN suggests that the current constrained economy requires property investors and practitioners to carefully navigate stressed consumers by implementing reasonable escalations, ensuring good payment behaviour, and keeping their premises occupied.

Source: Business Tech

The post Joy for landlords in South Africa appeared first on Amora Escapes.

(Yicai) Dec. 6 — A number of cash-rich Chinese distillers and coal miners have started to buy up land and properties in the country amid a sluggish real estate market.

An affiliate of liquor maker Jingpai paid CNY3.5 billion (USD490 million) for a sought-after land plot in Suzhou, eastern Jiangsu province, in October at a premium rate of 15 percent. The company has bought up a lot of property in Nanjing and Suzhou this year and is cooperating with real estate developers to let it operate them.

And coal miner Inner Mongolia Manshi Coal Group splashed out CNY4.1 billion (USD575.8 million) on three luxury apartment buildings in Shanghai. Two other coal producers, Erdos Group and Huineng Group, also recently spent CNY2.6 billion and CNY6.2 billion, respectively, on property in Shanghai.

Now is the time to pick up bargains as the real estate market is still stagnant and there are stimulus policies that should soon take effect, Zhang Hongwei, founder of Jingjian Consulting, told Yicai. Companies with deep pockets can buy up properties with a long-term view. They should look for prime properties in good locations that have a low price, he added.

Whether it is time to bargain hunt or not depends on the situation and it is still necessary to pay attention to market and policy risks when getting involved in real estate because of the volatile nature of the market, said Bai Wenxi, chief economist of IPG China.

Real estate is a capital-intensive industry with a lack of liquidity so investors need to carefully weigh up the pros and cons before they make a decision, he said.

Source : YiCaiGlobal

The post Wealthy Chinese Firms Go Bargain Hunting in China’s Stagnant Property Market appeared first on Amora Escapes.

At some point next year, the issue of home delivery could turn into a social issue and endanger social stability, and Beijing may eventually need to significantly ramp up policy support.

Nomura

The post China’s Unfinished Property Projects Are 20 Times the Size of Country Garden appeared first on Amora Escapes.

The post HSBC’s Quinn Says China Commercial Property Hit Lowest Point appeared first on Amora Escapes.

The rapid technological advancement, which has been dubbed by Harvard Business Review as “an access economy”, is all about providing economical access to peer-to-peer interactions for the exchange of goods and services.

While startups like Airbnb and Uber are swearing by this economic model, the global real estate industry is also prioritising digitisation and the access economy model. Because of this, Allied Market Research anticipates the global real estate sector to attain a staggering valuation of $48.9 trillion by the year 2031.

Perceived through a business lens, therefore, this signifies a vast scope of development for real estate startups. With further urbanisation, the real estate startup will grow in leaps and bounds. Amazing, isn’t it?

The emerging real estate startups are also called ‘PropTech Startups’ as they usher in technological advancements by introducing ingenious business models.

Wondering how you can keep track of the hottest real estate startups? Not to worry; we’ve compiled some of the most promising PropTech startups that are stirring the real estate landscape in 2023. Read along!

Top 5 prominent real estate startups

Evernest

Founded in 2019 in Hamburg, Germany by Luisa Haxel and Christian Evers, Evernest functions as a comprehensive real estate operating system. Through its data-centric service platform, it streamlines property transactions for both buyers and sellers. Moreover, the company has forged collaborations with various European property listing platforms to facilitate clients with real-time property updates.

Although the startup began its journey quite recently, it has already demonstrated an exceptional 5-year search growth of 4900%. Evernest secured substantial backing of €19 million in a Series A funding round in January 2022 from Apic Investments.

Driven by a rapidly expanding team of agents and employees, Evernest opened the doors of its fifth operational hub to extend its reach to major European metropolises in the pipeline.

Neighbor

Established in 2017 by Joseph Woodbury, Colton Gardner, and Preston Alder, Neighbor is one of the first peer-to-peer marketplaces nestled within the vibrant tech landscape of Silicon Slopes, Lehi, Utah.

Neighbor serves as a nexus by linking individuals who possess underutilised space within their residences, apartments or garages with renters in search of economical storage solutions.

This unique approach is immensely advantageous to renters as it furnishes them with secure and conveniently accessible storage at a bearable cost. Alongside this, it is a profitable prospect for hosts, enabling them to generate substantial annual income from their unused spaces.

The unique selling point of Neighbor lies in its commitment to cultivating secure, seamless, and friendly connections between renters and hosts. The company also promises a renter guarantee of $25,000 to safeguard stored items coupled with a substantial $1 million host liability guarantee.

These assurances resonate with Neighbor’s ethos of fostering a community of compassionate neighbours.

GetAgent

Founded in 2014 in London by Colby Short and Jean-Sebastien Powell, GetAgent empowers its users to discover adept real estate agents to manage their property affairs. It stands out for its innovative cross-referencing capability.

By analysing property data and the land registry’s performance metrics, GetAgent evaluates agents against predetermined criteria. This thorough inspection helps the users find out the best agent for their property.

With a user-friendly digital interface, the platform possesses the ability to schedule valuations, and monitor listings and thereby succeeds in ensuring a tailored approach to property management.

With the sale of over 200,000 houses in the UK and 600,000 users, GetAgent has carved a distinctive niche for itself.

Squarefoot

Founded in 2011 in New York City by Justin Lee, Jonathan Wasserstrum and Aron Susman, SquareFoot specialises in streamlining the world of commercial real estate leasing. Its core mission revolves around providing seamless real estate search by tailoring each step of the leasing process.

SquareFoot’s success lies in its user-friendly interface technology and a team of adept real estate experts.

SquareFoot’s driving force is rooted in its ability to bridge specific client needs with a dynamic understanding of market dynamics.

EasyKnock

Founded in 2016 by Jarred Kessler and Ben Black, EasyKnock introduces a unique approach by offering an alternative solution for customers looking to tap into their home’s equity.

The platform empowers users to seamlessly transform their equity into liquid assets. Through its innovative sale-leaseback programs, homeowners have the option to sell their property to EasyKnock while continuing to reside in it as renters. This arrangement extends for a period of up to 5 years, offering them the time to stabilise their circumstances. During this time, they can either finalise the acquisition of a new home or effectively address their financial challenges.

The startup has three distinct plans: Sell & Stay, MoveAbility, and ReLease. These plans are devoid of credit score or debt-to-income prerequisites. Additionally, renters are granted the flexibility to repurchase their home at any point, adhering to the mutually agreed-upon buyout cost.

This innovative residential sale-leaseback program discards the limitations posed by traditional lender requirements, thereby, opening new avenues for homeowners seeking financial solutions. A significant milestone came In August 2021, EasyKnock acquired FarmlandFinder, thereby becoming the first sale-leaseback service in the United States.

Since then, EasyKnock has experienced remarkable growth both in terms of funding and customer acquisition.

As we step into the future of real estate, these startups pave the way for innovation and seamless experiences. The future of property is now, and these PropTech pioneers are leading the charge. Here’s to a tech-powered tomorrow!

Source : YOURSTORY

The post Reshaping Real Estate: Hottest Proptech Startups of 2023 appeared first on Amora Escapes.

A beachfront compound near San Diego has sold in an off-market deal for $44.1 million, according to San Diego County Assessor Jordan Marks.

The “monumental” deal is a record for the county, said Marks, who is also the county recorder and clerk.

The compound, on just over an acre, is located in Del Mar, a few houses down from a property purchased by Microsoft co-founder Bill Gates and his then-wife, Melinda French Gates, for $43 million in 2020, records show.

The seller is a corporation tied to descendants of C.E. Toberman, a California real-estate developer who helped build Hollywood landmarks such as Grauman’s Chinese Theatre, the Roosevelt Hotel and the Hollywood Bowl. The buyer’s identity is unknown.

Located on Sandy Lane, the property has a ranch-style main residence, a guesthouse and a detached apartment, with eight bedrooms combined, according to real-estate agent Brian Guiltinan of the Guiltinan Group, who represented the buyer and seller. There is also a tennis court and swimming pool.

“The real significance to the property is it is over an acre on the sand, with 110 feet of frontage” on the ocean, said Guiltinan. It is the largest parcel on the beach, he said.

Toberman built the house in the 1950s, according to Wendy Fletcher Dyer, one of his great-grandchildren. Dyer is president of Investors Leasing Corp., which owns storage facilities in Nevada and California and is the legal owner of the house.

Dyer, who was raised in a house four doors down, said at one point her relatives owned seven houses on the street, all of which have been sold off over the years. She said her late father, Charles “Kim” Fletcher, lived in the house with her stepmother, Marilyn Fletcher, until his death in 2019. Kim Fletcher was president and CEO of Home Federal Savings & Loan in San Diego. After he died, Dyer said, she and her siblings voted to sell the property.

“We enjoyed the house and beach for decades and we made a lot of good memories,” she said, but beachfront properties are expensive to maintain, and she and her siblings have their own lives. “This allows another family to move in and make their own memories, and we’re excited for them.”

Last year, however, Marilyn Fletcher alleged in a lawsuit that Investors Leasing Corp. and its shareholders tried to evict her from the property in order to sell it. Her complaint alleged that the shareholders removed her belongings from the guesthouse, changed the locks and posted a “No Trespassing” sign. In July, a San Diego court ruled in favor of the shareholders.

“It was an unfortunate situation, but it was resolved in ILC’s favor,” Dyer said.

Marilyn Fletcher couldn’t immediately be reached for comment.

Source : MansionGlobal

The post Mystery Buyer Pays Record Price for San Diego County Home appeared first on Amora Escapes.

Investment in commercial property and development land in the Republic has fallen sharply this year with 2023 expected to be one of the weakest years on record in both markets, according to Sherry FitzGerald.

In a report published on Monday, the property agent said the sharp rise in interest rates to 22-year highs since last summer has hindered activity in both markets.

Rampant inflation in the price of wholesale construction materials, meanwhile, has “compounded” the difficulties, said Jean Behan, senior economist at Sherry Fitzgerald Research, “affecting the feasibility of developments and dampening forward fund and forward commit structured investments”.

In the three months to the end of September, investment in Irish commercial property totalled €430 million, up 25 per cent quarter-on-quarter, but well below the long-term third-quarter average of €788 million.

Investment in development land was more or less unchanged from the second quarter of the year €82 million but still well below average, according to the report.

Overall, commercial investment turnover has reached €1.4 billion so far this year, a 64 per cent decline from the first nine months of last year while the value of land sold has fallen by around half to €226 million.

Transaction volumes, meanwhile, are down by just over a third in both markets with 57 development land sales and 91 investment sales, suggesting “that 2023 looks set to be one of the weakest years on record in both markets”.

However, there remains “strong interest for sites” with residential development potential, according to the report, reflecting the overall housing shortage. “Looking forward, there is a general positive outlook in the development land market, “ said Brian Carey, commercial director of Sherry FitzGerald. “The pool of purchasers is still quite strong.”

In the investment market, the office sector was “the key driver of investor activity” in the third quarter, accounting for 38 per cent of the market’s total capital spend for the period. Retail assets also remain attractive, the report’s authors noted.

Ross Harris, director of commercial and residential investment at the property agent, said the flight to quality remains a feature of investor demand with buyers keen to refurbish or upgrade older stock.

“Meeting ESG [environmental, social and governance] objectives remains a key component of investment decisions with both investors and occupiers focused on energy efficiency and reducing their carbon footprint,” he said. “This will continue to underpin demand going forward, buoyed by the increased availability of green loans offering favourable terms.”

Source : TheIrishTimes

The post Building and Borrowing Costs Squeezing Commercial Property Investment and Land Sales appeared first on Amora Escapes.

The work from home trend has impacted real estate around the world, and in some places, up to 50% of office space is lying dormant. Central London, for example, has 31 million square feet of empty work space, the equivalent of 60 Gherkin skyscrapers. Last year, the vacancy rate for office real estate in Munich, Germany, rose for the fourth year in a row.

The good news is that investors are seeing a plethora of creative opportunities for preventing downtowns from becoming ghost towns.

The purpose is to repurpose

“Using obsolete office space for other functions such as apartments or small-scale commercial purposes eliminates the need to use raw materials to build a new building,” said Nikolaus Schmidt, global head of technology and innovation at Commerz Real, a global leader in investment and asset management services in the real estate, infrastructure, and renewable energy sectors.

Speaking at the recent SAP and SAP Fioneer Financial Services Forum Europe in Frankfurt, Germany, Schmidt went on to explain that retrofitting an empty space into a useful area aligns with the principles of the circular economy, a concept often symbolized by the infinity symbol to indicate that materials and products should be used again and again to provide continuous value.

“Breaking down a building to build something new is just about the worst thing you can do,” said Schmidt. “Transformation starts with the investment itself. In the past, clients only cared about the return on the investment. That is changing. Now, the investment should also be generating something good in the end.”

Schmidt cited the example of Commerz Real’s project to rebuild the Tucher Park in Munich, one of the company’s assets in its hausInvest open-ended real estate fund, one of the largest in Europe.

The mixed-use property, in the world-famous English Garden, consists of 10 properties in an area of 127,000 square meters. The park, developed mostly in the 60s and 80s, comprises seven office buildings, a 10,800 square meter computer center, a sports facility, a 5-star Hilton Hotel, and 1,500 parking spaces.

The company’s vision is to make Tucher Park a role model for sustainable redevelopment. “This is a place where people can work, live and spend their free time,” said Schmidt. “The idea is to create a circular city, incorporating the past into the future while respecting the needs of the inhabitants and nature.”

One third of the space will be transformed into affordable housing for rent, one third will become refurbished energy-efficient office space, and the rest will be converted for commercial purposes and sports and leisure facilities. Existing green spaces and trees will be maintained, and renewable energy will be generated onsite.

“There is a large data center on the property that’s being rebuilt, and the heat it produces will be used to heat the buildings,” Schmidt explained. “ We are also installing a new water treatment plant.”

The Commerz Real team is constantly thinking of ways to get full usage out of every element on a property. There is a huge focus on renewable materials, from wood to metal or concrete. The company is working with the city of Munich to embed circular concepts into new projects. The approach favored by Commerz Real is to tackle urban renovation block by block to shape a diverse mix for housing, work, community use, and green space.

According to Schmidt, from an investment perspective, that’s not a simple endeavor, because you have to look for areas where you can buy the whole quarter. Blocks are not owned by one person, but maybe hundreds of people who may each have their own house or apartment: “That’s why Tucher Park is so interesting for us; we were able to buy the whole place and renovate in one go,” he explained.

Collaborating for circularity

Setting up and keeping such huge projects on track requires a special kind of collaboration. While people are expecting renewable energy sources to power the future, they often are not aware of the enormous effort and cost of making it happen.

Schmidt pointed out that achieving 107 GW, the sum total of all the EU nations’ individual offshore energy targets for 2030, would require enough offshore wind parks to compensate for around 500 nuclear power plants. To say that greater regional collaboration is needed for meeting these targets is putting it mildly.

“We’re not building the necessary infrastructure by ourselves,” he said. Commerz Real is working with several developers across various nations and sourcing the money from a variety of B2C or B2B funds and institutional financing. “From the political and organizational perspective, we need to overcome the ‘not invented here’ syndrome and get better at collaborating, keeping an open mind, and joining forces to meet common goals across regions.”

For Schmidt, the new mindset starts right in his own department which is responsible for digitalizing Commerz Real. The company’s business transformation was achieved with SAP S/4HANA, SAP Business Technology Platform (SAP BTP), and the RISE with SAP offering, which is comprised of tailor-made ERP software, transformation services, business analytics, and partner expertise to help companies transition smoothly to the cloud.

“Our vision is not to be tech-driven, but to be powered by technology,” said Schmidt. “We are not SAP-centric, we are data-centric, running on SAP to best leverage our data and analytical capabilities. For us, technology is the foundation for delivering our wide range of business services, to ultimately make the world a better place.”

Source : Forbes

The post Commerz Real Is Creating A New Urban Reality With Circular Real Estate Projects appeared first on Amora Escapes.

Sydney’s chronic housing crisis is costing the economy more than $10bn a year, according to research from the Committee for Sydney thinktank that also found just five major cities around the world were more unaffordable.

Researchers found the costs were being felt most by young Sydneysiders at the start of their careers who were affected by an inability to find affordable housing near their work, leading to a costly loss in productivity.

The problem is so severe that it threatens to hasten brain drain and squash the city’s startup ecosystem, making it even harder for people with business ideas to make them a reality and costing the city an estimated $2.9bn a year.

Inefficient commutes alone cost the city $2.5bn a year in lost productivity, according to the committee, with women worse off due to the “spatial leash”, meaning they often have to work closer to home.

Benchmarked against other major metropolises, the report found Sydney met the three key chronic unaffordability metrics and required immediate and bold interventions.

The city’s median property price has surged to 13.3 times the median income; 35.3% of renters are in housing stress and the city is ranked the sixth-least affordable city, beating New York and London. Only Hong Kong, San Francisco, Singapore, Vancouver and Tel Aviv were less affordable.

The committee’s head, Eamon Waterford, said the level of housing stress necessitated a major rethink from politicians and the public.

“If we measure politicians on an electoral cycle … will they solve housing affordability in the next four years? The answer is unequivocally no,” he said. “It is about identifying – what are the levers that we pull in the next series of years that are going to set us on the right path?

“You could look at it similarly to the way we think about climate change. You can’t solve climate change in a single electoral cycle.”

Estelle Grech, the committee’s planning and housing policy head, said the report was about showing the financial impact of the housing crisis and encouraging bold action.

“What we’re trying to do with the big figure and the research … is give government licence to make big bold, unpopular at times decisions, but decisions that need to be made,” she said.

“This is a big issue and we need a big response.”

The committee’s recommendations included inclusionary zoning targets for affordable housing in new developments, investing in “much more” social and affordable housing and increasing housing supply with transport, schools and childcare.

Waterford said the Minns government’s initial housing announcements were a “good first step, but they’re only a first step”, as were pledges made by the federal government.

The New South Wales government has acknowledged the dire situation for the state’s most needy after the priority social housing waitlist doubled in less than a decade and surged by 1,000 to 7,573 over the past year.

Waterford also urged the public to become more active in calling for more development.

“Support growth in your local community, become a yimby, show up to council meetings and speak on behalf of development that’s going to see significant numbers of houses being built into communities,” he said. Yimby, short for “yes in my back yard”, is a term adopted by those in support of development.

Waterford added: “Speak to your neighbors about the existential challenge, recognise that building housing for people that are different to you is a really good outcome for your community because that diversity breeds vibrancy.”

The alarm has been sounded after Guardian Australia revealed Sydney apartment buildings were being acquired by developers, demolished and replaced with luxury homes, resulting in a net loss of dwellings.

Source : TheGuardian

The post Only Five Cities Worldwide Are More Unaffordable Than Sydney for Housing, Thinktank Says appeared first on Amora Escapes.

A Willyaroo property gives you the opportunity to mix business with pleasure.

John and Carole Calder are selling the 1.01ha property at 25 Richardson Rd that they bought as vacant land in 2011.

The couple has since built a stunning family home and infrastructure that could make it suit a variety of uses.

“We were in Mount Barker and my wife wanted a property that was big enough to have her two horses on,” Mr Calder says.

25 Richardson Rd, Willyaroo. Supplied

---

25 Richardson Rd, Willyaroo. Supplied

---

25 Richardson Rd, Willyaroo. Supplied

“So we built paddocks and an arena, added a pool and then my wife decided to open a cat boarding business so she built the shed and fitted it out, and that business has been going really well.”

The couple built the home in 2011 through Hickinbotham and Mr Calder says the four-bedroom property had been renovated throughout 18 months ago to now offer a fabulous contemporary lifestyle.

“It’s an incredible home to live in, and it’s got so much space and room for a family to move,” he says.

“It has taken a lot of time and money to get here, and we’re certain someone else will love it.

25 Richardson Rd, Willyaroo. Supplied

25 Richardson Rd, Willyaroo. Supplied

---

“It’s a great property but we’re looking to downsize and live a bit of a slower life and think it would be the perfect place for a young family or someone looking to keep animals or run the business, because it’s the perfect business to run from home.

“It would be great if someone wanted to continue running the business.

“If they didn’t want to do it themselves they could easily get a manager in to run it for them.”

The property is being sold via an expressions of interest campaign.

Source : Realestate.com.au

The post Willyaroo Property Offering More Than Just a Place to Live appeared first on Amora Escapes.