select
|

South African property market - worth trillions

The South African property sector is worth R4.9 trillion, the Property Sector Charter Council said on Tuesday.

CEO Portia Tau-Sekati said this emerged from a new study to determine the size and value of South Africa's property.

"Establishing the scope of the property sector is important for an accurate overview of the economy, taking into account that in 2009 the property sector contributed 8.3 percent of SA's GDP," she said.

She said the research -- the first of its kind -- created a "hub of knowledge" of the property sector.

It consolidated information by developing a common and consistent understanding of property in the country.

"We are moving towards a proper baseline measure to assess market size and its components," she said.

"The scale of different services and activities within the sector and ultimately BEE transformation figures [are] in line with the Property Sector Code scorecard."

The study found that one percent of land in the country was urban and residential, over 73 percent was natural pasture, and 12 percent agricultural.

Two-thirds of property owned in South Africa was residential and estimated to be worth R3 trillion, while the commercial property totalled R780 billion.

The research combined various studies which estimated the size of the country's residential market.

The number of houses in the country varied between eight and 13 million in the studies.
"Besides being a benchmark to monitor and evaluate the progress of transformation of the sector each year, this study marks the beginning of an ongoing research process, which will update information on the property sector annually," Tau-Sekati said

The study would be a useful tool for understanding the South African property market and its dynamics, she said.

(SAPA)


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
    • 19 Apr 2018
      The rental market is a cut-throat sector of the real estate market that waits for nobody. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, first-time renters need to be fully prepared before they even start the process of looking for a place to rent in order to avoid the disappointment of losing out on their ideal property.
    • 19 Apr 2018
      Choosing to buy your first home instead of continuing to rent is a big decision that will usually take some time to put into action, but the sooner you can save up a sizeable deposit, the closer you will be to reaching your goal.
    • 18 Apr 2018
      Selling your home is no small task and as you will quickly find out, there are a lot of misconceptions about the process. Gerhard van der Linde, Seeff's MD in Pretoria East lists the top 5 misconceptions when you are selling your home.
    • 18 Apr 2018
      The Cape Town municipality is now installing water-management devices at properties that have been non-compliant with the new level 5 water restrictions and there are talks of fines between R5,000 and R10,000 for households that use too much water.
    • 17 Apr 2018
      The recent interest rate cut has stoked the coals in the first-time buyer’s market. At least for the next two months until the next interest rate announcement, homeowners are guaranteed lower monthly instalments than in the previous quarter. But, is it wise to take out a 100% bond just to enter the property market while interest rates are low?
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK