New online facility tracking major property market indicators launched, freeing property professionals from the time-consuming task of trawling countless websites for the vital information they need.

South Africa’s most comprehensive online source of property data, the South African Property Transfer Guide (SAPTG), now publishes a convenient, up-to-date summary of the main economic indicators that relate to the property market. Freely available to the public via its website (www.saptg.co.za), the SAPTG Property Market Indicators page means that interested parties no longer have to spend hours trawling countless websites to find the important information they need.

Dieter Deppisch, Head of Property Research at SAPTG explains, “The data we have brought together will help browsers quickly understand what is going on in the market. One of the big benefits for estate agents is sharing the information with prospective clients. Not only does having this information and sharing it boost their credibility, it enables them to advise clients on the right strategies.” “For example, they can discuss the trends affecting different housing segments and use facts — such as 81 percent of houses are currently selling at below their asking prices.”

Deppisch is quick to point out that the Property Market Indicators page is not just for agents, though. “It’s for anybody interested in the SA property sector,” he confirms. “The page summarises data from a wide variety of sources, including the South African Reserve Bank (SARB), Statistics South Africa, the major banks, mortgage originators and other property consultants and research houses, and tracks whether the various indices have changed and, if so, by how much. All of which makes it an indispensable snapshot for developers, investors, valuers, journalists and even private buyers and sellers.”

Visitors to the SAPTG website can access the Property Market Indicators page via the ‘Market Indicators’ link in the top menu on the homepage (http://home.saptg.co.za/market-indicators/). “You don’t have to subscribe or login to access the data,” verifies Deppisch, “and there’s a useful jargon-busting document available as well, via the ‘need some help?’ link on the page.”

As well as being constantly updated, new sources of information are also being added to the page on a regular basis. “We are always looking to add any information that will make the page even more relevant and useful,” notes Deppisch, “the Knight Frank Global House Price Index will be included shortly, for instance, which will give us an idea of how the local market compares internationally.”

1½ hour Parking: R9.00.  1 cup of Coffee: R282.50)

Wanting to be the best that you can be requires more than just desire. Talk-show hosts and movie stars love clichés like “Believe in yourself”, “Reach for the stars”, “If you can dream it, you can have it” and other similar drivel.

Having just travelled the length and breadth of South Africa addressing delegates from the property industry, I have been both disappointed and inspired. Disappointed by the alarming number of agents who still think they can make a quick-buck selling houses any old way. And inspired by those who are a change catalysts – who remodel the public’s negative perceptions of estate agents, one person at a time by their professional work ethic.

The fact is, if you want to be a successful in this industry you will have to acknowledge three things:

BE HONEST:  Honesty with buyers and sellers is a natural outflow when you are truthful and sincere in other facets of life. Clients trust you to give them candid and insightful guidance when buying or selling property. Often, clients are pretty good at character assessment and will spot your deceit faster than you can say: “this house is a real bargain”. In terms of the Estate Agency Affairs Act you are obligated to share pertinent information. While the Voetstoots clause may protect the seller, it certainly will not protect your reputation. 

HARD WORK: It is an amusing incongruity that an agent complaining of low sales will happily pay close to R300.00 for a cup of coffee.  If he wants to earn R35000/month in commission, his time is worth R182/hr (24 days/month, 8 hours/ day). The cost of parking and spending 90 minutes chatting to a friend over a cuppocino will cost him R283 in work time!

The road to failure is paved with one simple adage: no time – no dime.

STAY CURRENT: Technology has transformed the face of real-estate in the past 3 years. Forward- thinking professionals are using social media, YouTube and online marketing like never before. They use property data portals like SAPTG to be true area specialists. Thumb-sucks are replaced by calculation and analysis. Buyers and sellers are also doing homework. So professionals have to constantly take their game to the next level or be left out in the cold.

Being a first-rate real estate agent is much easier said than done. The recession has seen over 65% of South Africa’s agents leave the industry in the past 2 years.  Nonetheless, professionals who have an honest reputation, who are willing to put in the time and embrace technology will continue to be successful.

Dieter Deppisch

Head: Property Data Research

Knowledge Factory

‘Know your Game’ seminar arms property professionals with insights and ideas that will increase sales

The South African Property Transfer Guide (SAPTG) in association with industry partners is currently hosting a free nationwide training seminar for property professionals entitled ‘Know your Game’. Designed to offer industry-specific information that can be used to strengthen the real estate business today, ‘Know your Game’ also arms delegates with tools to take their client service to the next level.  The seminars continue until 21 May at different venues nationwide.

“The seminar is a platform for property professionals to come together and learn valuable insights and ideas that will help secure livelihoods by increasing sales” says SAPTG’s Head of Property Data Research, Dieter Deppisch. Acknowledging the recent recession, he insists that “understanding the South African people, trends and economy more fluently, property professionals can keep themselves relevant and thriving even during challenging times.”  The Development Institute and Training Academy of Southern Africa (DITASA) strengthens the seminar with a presentation aimed at resolving any uncertainties surrounding the NQF level 4 and 5 qualifications. Effective online property marketing is also covered by an expert from Property Genie, one of the largest online real estate portals in South Africa.  SA Homeloans offer their expertise in the field of consumer creditworthiness and explain how agents can ensure their potential buyers will meet stringent requirements when applying for financial assistance.

In addition, the seminar provides delegates with simple answers to complex legal issues. “The seminar is a platform for property professionals to come together and learn valuable insights and ideas that will help secure livelihoods by increasing sales” says SAPTG’s Head of Property Data Research, Dieter Deppisch. Acknowledging the recent recession, he insists that “understanding the South African people, trends and economy more fluently, property professionals can keep themselves relevant and thriving even during challenging times.”

In the spirit of 2010, Deppisch concludes, “know your game, know the rules, and you will score with regularity.”

Anyone interested in the ‘Know your Game’ seminar is invited to book for free on the SAPTG website at www.saptg.co.za.

‘Know your Game’ seminar arms property professionals with insights and ideas that will increase sales

The South African Property Transfer Guide (SAPTG) in association with industry partners is currently hosting a free nationwide training seminar for property professionals entitled ‘Know your Game’. Designed to offer industry-specific information that can be used to strengthen the real estate business today, ‘Know your Game’ also arms delegates with tools to take their client service to the next level.  The seminars continue until 21 May at different venues nationwide.

“The seminar is a platform for property professionals to come together and learn valuable insights and ideas that will help secure livelihoods by increasing sales” says SAPTG’s Head of Property Data Research, Dieter Deppisch. Acknowledging the recent recession, he insists that “understanding the South African people, trends and economy more fluently, property professionals can keep themselves relevant and thriving even during challenging times.”  The Development Institute and Training Academy of Southern Africa (DITASA) strengthens the seminar with a presentation aimed at resolving any uncertainties surrounding the NQF level 4 and 5 qualifications. Effective online property marketing is also covered by an expert from Property Genie, one of the largest online real estate portals in South Africa.  SA Homeloans offer their expertise in the field of consumer creditworthiness and explain how agents can ensure their potential buyers will meet stringent requirements when applying for financial assistance.

In addition, the seminar provides delegates with simple answers to complex legal issues. “The seminar is a platform for property professionals to come together and learn valuable insights and ideas that will help secure livelihoods by increasing sales” says SAPTG’s Head of Property Data Research, Dieter Deppisch. Acknowledging the recent recession, he insists that “understanding the South African people, trends and economy more fluently, property professionals can keep themselves relevant and thriving even during challenging times.”

In the spirit of 2010, Deppisch concludes, “know your game, know the rules, and you will score with regularity.”

Anyone interested in the ‘Know your Game’ seminar is invited to book for free on the SAPTG website at www.saptg.co.za.

A recently announced partnership will strengthen the real estate industry by giving it ‘one voice’, say representatives from SAPTG and IEASA.

The most comprehensive source of property market data, the South African Property Transfer Guide (SAPTG) and the Institute of Estate Agents of South Africa (IEASA) recently announced their partnership. By bringing together the leading online source of information on the South African property market and the country’s largest association of real estate agents, the alliance stands out as a significant step in the strengthening of the industry.

“This partnership reflects our belief that the South African real estate industry is strengthened by having one voice and coming together in one forum,” comments Dieter Deppisch, SAPTG’s head of Property Data Research & Training. “IEASA has been representing real estate agents for 75 years and we encourage every single estate agent in South Africa to become a member of the institute. All SAPTG subscribers will be incentivised to join IEASA if they have not already done so — the bigger our voice, the better”

The partnership means that the SAPTG is now the Institute’s preferred data supplier and will be important in the promotion of information sharing in the industry. IEASA will also be represented at the accredited training seminars presented by the SAPTG around the country, including the upcoming ‘Easy as Pie: Stats for Success in Real Estate’ seminars.

Ken Ralph, Chairman of the National Board of IEASA, comments: “This partnership is a two-way street and we look forward to the opportunity to hold hands with the SAPTG. We have a membership base of almost 30 per cent of the country’s estate agents and we hope to grow this to 50 per cent — to have a bigger voice and to become the official mouthpiece of the industry.”

For more information on the country’s leading source of property market data, visit the SAPTG website at www.saptg.co.za or contact Knowledge Factory directly on (011) 445-8100.

In 2008, it was legislated that all Estate Agents need to be qualified against the FETC: Real Estate, SAQA ID 59097, NQF 4. To qualify, Estate Agents need to acquire a total of 150 credits.

The South African Property Transfer Guide (SAPTG) efforts to align their popular seminars with an accredited training academy reflect their ongoing commitment to contribute to the professionalisation of South Africa’s Real Estate industry.

The seminar “Easy as Pie: Stats for Success” in Real Estate outlines the effective implementation of statistics in various real-estate disciplines.  SAPTG have joined forces with The Development Institute & Training Academy of Southern Africa (DITASA) to align the material with SAQA unit 9015. DITASA, South Africa’s leading training and assessment academy, will provide delegates attending the seminar with the opportunity to participate in an RPL Assessment process to earn 6 credits towards their NQF4 qualification.

A recently announced partnership will strengthen the real estate industry by giving it ‘one voice’, say representatives from SAPTG and IEASA.

The most comprehensive source of property market data, the South African Property Transfer Guide (SAPTG) and the Institute of Estate Agents of South Africa (IEASA) recently announced their partnership. By bringing together the leading online source of information on the South African property market and the country’s largest association of real estate agents, the alliance stands out as a significant step in the strengthening of the industry.

“This partnership reflects our belief that the South African real estate industry is strengthened by having one voice and coming together in one forum,” comments Dieter Deppisch, SAPTG’s head of Property Data Research & Training. “IEASA has been representing real estate agents for 75 years and we encourage every single estate agent in South Africa to become a member of the institute. All SAPTG subscribers will be incentivised to join IEASA if they have not already done so — the bigger our voice, the better”

The partnership means that the SAPTG is now the Institute’s preferred data supplier and will be important in the promotion of information sharing in the industry. IEASA will also be represented at the accredited training seminars presented by the SAPTG around the country, including the upcoming ‘Easy as Pie: Stats for Success in Real Estate’ seminars.

Ken Ralph, Chairman of the National Board of IEASA, comments: “This partnership is a two-way street and we look forward to the opportunity to hold hands with the SAPTG. We have a membership base of almost 30 per cent of the country’s estate agents and we hope to grow this to 50 per cent — to have a bigger voice and to become the official mouthpiece of the industry.”

For more information on the country’s leading source of property market data, visit the SAPTG website at www.saptg.co.za or contact Knowledge Factory directly on (011) 445-8100.

Tito Mboweni is the first South African Reserve Bank governor to have become a true celebrity! Everywhere he appears in public, groupies hang onto his lips, frantic to know whether there will be another rate-cut or not. The groupies however are not lingerie-throwing, screaming teenagers but normal homeowners paying off their prime-rate linked mortgage bonds. Never before has mortgage bond finance provided so much fodder for dinner party conversations.

Leading insights and analytics company, Knowledge Factory, in conjunction with their property data division SAPTG, have just released a study of mortgage bonds and trends in South Africa. The research focused on transactions in the period June 2008 to May 2009. The study included residential full and sectional title properties in the price band R200 000 to R20 million. Their findings make for interesting reading.

Bond vs Cash

Data indicates that during the period June 2006 – May 2007, 77.7% of all properties registered were bonded, this drops to 63.3% in the 08/09 period.  The flipside of the statistics above indicates a surprising level of liquidity amongst current buyers in the real-estate economy. This statistic must however, be qualified: Full-title property sales dropped by 40% and sectional title by 44% in the period June 2008 to May 2009. So while the percentage of cash sales is high, it is of a smaller volume of transactions than we had a few years ago when real-estate was booming. Property is an increasingly attractive asset class for investors disappointed by recent poor returns in the equity market and other investment classes and this has served to boost cash sales.

Loan to Value Ratios (LTV)

The study showed the significant change in LTV’s, given the numerous drivers we find in a recessionary economy. Whereas the period 2005/2006 saw full-title properties bonded at a LTV ratio of 103.6% this dropped to 95.2% in the period 2008/2009. Dieter Deppisch, who heads Knowledge Factory’s property data research elaborates: “The decline in LTV’s can be directly attributed to demands for higher deposits and reduced risk appetite on the part of financial institutions. Interestingly, sectional title bonds currently have a lower LTV rate than full-title, namely 90.8%.”  In general financial institutions have been more cautious with credit extension for sectional title, part of the perceived risk involves body corporate financial management. The management (or lack thereof) of the complex can seriously impact on the long-term asset growth of the individual sectional title.

Coastal vs Inland

An interesting comparison was made between inland and coastal properties (within 500m of the sea).

64% of inland properties are mortgaged, dropping to just 47% for coastal properties.  Although coastal property transactions account for merely 4.2% of all transactions, but they have only declined by 21% y/y in comparison to the 39.6% y/y decline in inland transactions.

Bond vs Purchase Price

A correlation is clearly seen in the bond size versus the purchase price when digging into the various price bands. Lower priced purchases have a greater reliance on bond finance. Bonds in excess of 100% were excluded in this analysis as they often include bonds required for building on vacant land. In the price band R100k-R600k the bonds averaged 66% of the purchase price, in the band R600k-R1,5mill it was 52% dropping still lower to 46% for the band R1,5mill and higher.

Outlook

With South Africa’s economy in slow-recovery mode, extensive rate-cuts and a cautious increase in lending institutions risk appetite, real-estate sales are expected to rise.  Recent data indicates a slowing in house price deflation with the hoped for inflation in this sector said to return during 2010. This sanguinity is underscored by home-loan divisions reporting a decline in mortgage loan arrears which points to an improved ability of clients to service debt.  Above these positive trends hangs a cloud – that many South Africans will again allow themselves to become heavily indebted. While the NCA was fashioned to prevent that from happening, as a nation we have not, as yet, created a savings culture to diminish our reliance on financial institutions. And, until we do, we will continue to be Reserve Bank Governor groupies.