Politics and finance will have a major influence on property in 2015

Chris Renecle, MD of Renprop, believes that politics and home loan lending by financial institutions will have the most impact on the South African property market during 2015

For residential property, 2014 has been a reasonable year that has seen an exceptional demand for sectional title properties from both investors and tenants, says Chris Renecle, MD of Renprop. “New developments have launched to sell out success in key areas throughout Johannesburg’s northern suburbs, and pent up demand in certain suburbs is expected to continue into the first half of 2015.”

Renecle points out that the continued demand for sectional title properties is underpinned by the lack of 100% bonds being approved for buyers, which is in turn boosting the buy-to-let and rental markets. Sectional title properties, he says, continue to grow in popularity as they provide an ideal environment for both investors and tenants. “This growth trend in sectional title properties is expected to continue,” he says.

However, Renecle points to politics and finance as the key drivers or disruptors of the property market as a whole for 2015. “The political landscape and home loan lending by financial institutions will have the biggest influence on the property market in the year ahead. We should be following the rest of the world in terms of property growth post recession, yet we are not. During the first six months of 2015 we would like to see a GDP growth rate in excess of 3%,” he says.

When it comes to the home loan lending environment, Renecle hopes that the financial institutions have realised their error in focusing so much on the unsecured loan market. “We hope that they will, despite Basal requirements, shift their focus to start lending more freely in the secured finance market.”

In terms of the commercial property market, Renecle hopes for an uptick in interest in 2015, with a reduction in vacancies in the office space sector, which is currently sitting at around 14%. “We are seeing a gravitation towards sectional title office space from small and medium enterprises who are looking to own their offices. This is usually a precursor to the market turning, however that will depend largely on what happens in political sphere in the months ahead.”

Industrial properties on the other hand, according to Renecle, are performing moderately well, a trend he expects will continue into the New Year.

The affordable housing market continues to be depressed due to a lack of affordability from bond applicants.

Overall, Renecle says that increasingly tough legislation around the property market coupled with inefficiency from the local, provincial and national authorities when it comes to building plan approvals and property rates issues will contribute to an already difficult business environment in the year ahead.

“Despite the lack of finance available to investors among the other challenges predicted for the year ahead, Renprop is set to follow on from its 2014 success with numerous sectional title developments in key areas throughout Johannesburg, and is scheduled to break ground together with its development partners on at least three new residential apartment buildings in the high demand areas of the northern Johannesburg region over the next few years,” says Renecle.

While its residential divisions will focus on the new developments in the pipeline and rental opportunities the current market presents, the other divisions within the Renprop group - from property and rental management to commercial property and the corporate short stay division - will continue to grow and diversify in the year ahead.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 20 Jun 2018
      With interest rates remaining at historic lows and banks continuing to compete for mortgage finance business, first-time buyers with funds at their disposal are currently well-placed to gain that initial foothold on the property ladder, particularly in the light of the slightly lower growth rates currently experienced in residential property values.
    • 20 Jun 2018
      The average size of bond granted in SA has grown 7,7% in the past 12 months to R934 000, according to BetterBond, the country’s biggest bond originator.
    • 19 Jun 2018
      In the current market, letting out a property can be a good option as rental demand remains strong, especially in the northern suburbs of Johannesburg. This is according to Chris Renecle, MD of Renprop. However he says that before homeowners let their property out, there are five key points they should make sure are covered before they market the property for rent and sign any lease agreements.
    • 19 Jun 2018
      The Capetonian dream is to live by the ocean with the iconic mountain making an appearance somewhere in the horizon. But, that dream comes with a hefty price tag that many simply cannot afford. But, should you venture some kilometres out of the city centre, entirely new realms of beachside bliss await you …
    • 19 Jun 2018
      Douw Steyn, one of the richest men in the country, recently allowed a rare glimpse into his Fourways Palazzo when it was featured on the SABC lifestyle programme Top Billing - and it is beyond your wildest dreams!
    • 18 Jun 2018
      Many home sellers are motivated to appoint estate agents because they know that the agency will carry the costs of advertising and marketing their property.
    • 18 Jun 2018
      When a property is sold when it has a tenant in occupation, the questions often raised are: “What happens to the tenant if the landlord sells the property?”, and what rights the tenant will have with regards to cancelling the lease or enforcing it, says Sunell Afrika, rentals manager for
    • 18 Jun 2018
      Sellers are often caught off-guard by the expenses incurred in the selling of a property. Just like there is no such thing as a free lunch, there is also no such thing as selling your property without incurring at least some costs.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us