China and US housing markets

China and US housing markets leading economic impacts
Source: SOUTHEM Updates 270707
By Mike Smith Two major factors influencing Southern Hemisphere forest industries are to the forefront of the latest World Economic Outlook from the International Monetary Fund (IMF).
On the one hand, China, which has been fuelling new markets for forest products, and the United States housing market, are to the fore in the IMF’s World Economic Outlook released this week.
The overall balance of risks to the global growth outlook remained tilted modestly to the downside, as it was at the time of the April 2007 World Economic Outlook, the report said.
“A number of other risks, however, look more balanced. In particular, while the correction in the housing sector is continuing, overall downside risks related to U.S. domestic demand have diminished somewhat.”
At a web based media briefing for journalists, officials said that China was contributing about a quarter of current global growth. When Russia and India were added, these emerging economies were contributing more than 50 per cent of global growth.
As far as the US economy was concerned, the first quarter was very week and growth was expected to be over 3 per cent in the second quarter so it could average over 2 per cent for the first half and pick up in the second half.
The US housing sector was expected to continue to drag its feet, with continuing decline through 2008 but a reduction in the level of the decline.

Info for Landlords and Tenants

Info For Landlords And Tenants
Prop24.com - 2007/07/25
What landlords and tenants should know about the provisions of the Rental Housing Act. By Nadisha SinghThe Rental Housing Act 50 of 1999 ("the Act") came into effect on 01 August 2000. The aims of the Act are to regulate the relationship between tenants and landlords by laying down general requirements relating to leases, making provision for the establishment of Rental Housing Tribunals in each province, and laying down general principles governing conflict resolution in the rental housing sector.This article seeks to provide a summary of the key provisions of the Act which would regulate the common causes of disputes that occur between landlords and tenants, and to thereafter provide an overview of the dispute resolution procedure created by the Act for the resolution of disputes between landlords and tenants.Key Provisions of the ActThe Act defines a "landlord" as the owner of a dwelling or his/her authorized agent. At the outset, the Act reinforces the principle of non-discrimination entrenched in section 9(3) of the Constitution of the Republic of South Africa, 1996 ("the Constitution") by requiring that a landlord may not unfairly discriminate against a prospective tenant on one or more grounds, including race, gender, pregnancy, marital status, sexual orientation, age, disability, or religion when advertising a dwelling, in negotiating a lease, or during the term of a lease.A lease does not have to be in writing but a landlord must reduce it to writing if a tenant requests he/she to do so. A lease, whether verbal or written, will be deemed to include the following terms:• The landlord must furnish the tenant with written receipts for all payments received by the landlord from the tenant.• A deposit paid by the tenant to the landlord must be invested by the landlord in an interest-bearing account with a financial institution and the landlord must pay the tenant interest at the rate applicable to a savings account with a financial institution. The tenant may request the landlord to provide him/her with written proof in respect of the interest accrued on the deposit, and the landlord must provide the proof on request.• The tenant and the landlord must jointly, before the tenant moves into the dwelling, inspect the dwelling to ascertain whether or not there exists any defects or damage to the dwelling. If there are any defects or damage, it must be reduced to writing and attached as an annexure to the lease.• At the expiration of the lease the landlord and tenant must arrange a joint inspection of the dwelling to take place within a period of three days prior to the expiration of the lease.• On the expiration of the lease, the landlord may apply the deposit and interest towards the payment of all amounts for which the tenant is liable under the lease, including the reasonable cost of repairing damage to the dwelling during the lease period. The balance of the deposit and interest, if any, must then be refunded to the tenant by the landlord not later than 14 days after the tenant has vacated the dwelling.• The receipts which indicate the costs which the landlord incurred in repairing any damage to the dwelling must be available to the tenant for inspection as proof of the costs incurred.• Should no amounts be due and owing to the landlord in terms of the lease, the deposit, together with the accrued interest, must be refunded by the landlord to the tenant, without any deduction or set-off, within seven days of expiration of the lease.• Failure by the landlord to inspect the dwelling in the presence of the tenant is deemed to be an acknowledgement by the landlord that the dwelling is in a good state of repair, and the landlord will have no further claim against the tenant, who must then be refunded the full deposit plus interest.It is important to note that the standard provisions above are enforceable in court and may not be waived by the tenant or the landlord.If on the expiration of the lease the tenant remains in the dwelling with the express or tacit consent of the landlord, the landlord and tenant are deemed, in the absence of a further written lease, to have entered into a periodic lease, on the same terms and conditions as the expired lease, except that at least one month's written notice must be given of the intention by either party to terminate the lease.An alternative dispute resolution forum: the Rental Housing TribunalThe Act makes provision for the establishment of Rental Housing Tribunals ("Tribunals") in each province. To date, Tribunals have been established in the Western Cape, KwaZulu-Natal, Gauteng, and the North West. The Tribunals, which provide a free service to tenants and landlords, seek to resolve disputes that arise between landlords and tenants due to unfair practices, and to inform landlords and tenants of their rights and obligations in terms of the Act. Each Tribunal consists of members who have expertise in housing management, housing development, and consumer matters relating to rental housing.The Tribunals operate in accordance with the principles laid down in the following legislation: the Constitution, the Act, The Unfair Practices Regulations, and the Procedural and Staff Duties Regulations published in terms of the Act, and the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act, 1998.Complaints may be lodged by mail or facsimile or delivered in person to the office of a Tribunal. On receipt of a complaint, the Tribunal will acknowledge the complaint in writing and will then begin conducting preliminary investigations to determine whether or not the complaint relates to a dispute that has arisen due to an unfair practice. If the complaint relates to a dispute that has arisen due to an unfair practice, the Tribunal will determine whether or not the dispute may be resolved by mediation. If the dispute may be resolved by mediation, the Tribunal will appoint a mediator who will merely act as a facilitator in trying to resolve the dispute. The final decision will be the decision of the parties and not of the mediator. If the dispute cannot be resolved by mediation, the Tribunal will arrange for a formal hearing of the complaint.Any dispute that has arisen due to an unfair practice must be determined by a Tribunal unless proceedings have already been instituted in another court. However, a person retains the right to approach a court to institute proceedings for the normal recovery of arrear rental, or for eviction in the absence of a dispute regarding an unfair practice. A ruling by the Tribunal is deemed to be an order of the magistrate's court in terms of the Magistrate's Court Act, 1944 and the proceedings of a Tribunal may be brought under review before the High Court within its area of jurisdiction.It is submitted that the creation of the Tribunals is a commendable initiative by Government. Once an awareness of the provisions of the Act and the activities of the Tribunals have been created among the general public, both landlords and tenants will become more informed and will then feel more empowered and protected. The number of disputes between landlords and tenants may decrease and those disputes that occur will be resolved by the Tribunal, with the result that the burden of our courts will be eased tremendously. – Nadisha Singh*Nadisha Singh is an Associate at the Cape Town office of corporate law firm Bowman Gilfillan.

Growth in land prices outstrips houses

Growth in land price outstrips houses amid lack of properly serviced sites
Business Report
July 30, 2007
By Roy Cokayne
Pretoria - Land price increases are outstripping the average growth in house prices due to the scarcity of properly serviced land for residential development.The latest Absa quarterly report on the residential property market, released last week, said the scarcity was particularly acute in the rapidly growing metropolitan areas and the coastal regions of South Africa.Jacques du Toit, a senior economist at Absa group economic research, said: "This situation is not expected to improve materially and will increasingly be reflected in vacant land prices in years to come."The report showed that land values for new housing increased by 26.6 percent year on year in the second quarter to about R380 000 on average. This compared with year-on-year growth of 28.4 percent in the first quarter.Real growth in land prices of 18.4 percent year on year was recorded in the second quarter, compared with 21.2 percent in the previous quarter.Du Toit said demand and supply conditions for land for new housing caused land values to rise from R163 a square metre in 2000 to R546 a square metre last year.
Excluding the impact of inflation, land prices rose 150.5 percent, or 16.2 percent a year, in this period. But Du Toit said the ratio of average land values to average prices of houses rose from 25.9 percent in 2000 to 32.9 percent last year after reaching a low of about 21 percent in the mid-1990s."Along the coast, land with a view has continued to increase in value in recent years despite a slowdown in the residential property market in general since 2004," he added. "House prices in these areas may reflect market conditions, but growth in land values may remain strong and rise further as a result of diminishing supply."Du Toit said the market for residential land was influenced by demographic factors and the sharp increase in the construction of new housing. The country's population rose 7.8 percent to 48.3 million people between 2000 and last year.

Property still open to foreign buyers
Business Report 2007
Land restrictions remain on table after release of cabinet report
By Roy Cokayne
Pretoria - The threat of restrictions on the foreign ownership of land receded yesterday, but the issue remains on the government's agenda. A cabinet meeting in Pretoria received and noted the report by the panel of experts on the development of policy on regulation of foreign land ownership. The report follows the hefty increase in property prices in recent years, which was blamed on land purchases by foreigners. The panel considered the following key recommendations:

• Long-term leasing of land as opposed to outright sale;
• A possible moratorium on sale of land to foreigners;
• The identification of instances where a prohibition on foreign ownership of land could be justified, such as national key points, water catchment areas, land along border lines and international borders;
• Special ministerial approval in cases where certain categories of land were considered for disposal, such as land earmarked for land reform, restitution or integrated human settlement.

The cabinet statement says it has approved the publication of the report for public comment subject to the inclusion of a comparative analysis of how other countries managed this complex policy matter."The final policy will be approved by cabinet after the public has commented on the report," says the statement.

Erwin Rode, chief executive of property services company Rode & Associates, believes the threat of foreign land ownership restrictions is receding. He has the impression that the government is backtracking on the imposition of restrictions."The fact that they haven't come up with any hard evidence of foreigners somehow influencing our [property] prices will make it difficult for government to do anything but make a gesture," he said.

John Loos, a property strategist at First National Bank Commercial Banking, said there was "nothing too concrete" on what the policy would be. He did not ultimately believe the recommendations would be draconian.
"They are taking a long time, and the longer it takes the more I'm encouraged, because the more sensible the policy will possibly be. There are concerns about foreign land ownership but the government is also aware of the potential benefits of foreign investment," Loos said."There have been suggestions that foreign land ownership has been driving up property prices," he continued."The reality is that the economy has been performing strongly and the middle class growing, which has been the main driver of property inflation."Loos said in support of this statement that property inflation was widespread, even in townships where there was very little foreign interest. In February the state-appointed panel called for an immediate moratorium on land transactions by non-South Africans, despite preliminary findings indicating extremely low levels of foreign ownership. Attraction of local equities is fading Johannesburg - Equities were losing their appeal to foreign investors, Old Mutual Investment Group South Africa (Omigsa) said yesterday. Peter Brooke, head of macro strategy at Omigsa, said that based on historic price: earnings ratios of US shares and local shares, South Africa might get fewer foreign inflows in the next three years. Price: earnings ratios reflect corporate prospects, with a high ratio showing a very optimistic outlook on earnings. Foreigners invested R130 billion in South African financial assets last year, with about R72 billion going into JSE-listed shares. This year investors from abroad have made net purchases of about R50 billion, compared with R55 billion for the same period last year. But Brooke said the real return from all asset classes would be "considerably lower than those seen in the past four years". Bonds, which have responded to the deterioration in inflation, are expected to yield only 8 percent. Property is forecast to earn about 10 percent, while equities are expected to be the best performer, with returns of up to 13 percent a year over the next three to five years.

Interest rates will keep moving up
Business Report July 20, 2007
Johannesburg - Expect to see South Africa's main repo rate hit 10 percent by this time next month - its highest rate in four years - as continued high consumer inflation and food prices on harvest concerns provide more than enough ammunition for the increase, said Moody's Economy.com."We expect that consumer-price data out next Wednesday will again test the South African Reserve Bank's inflation target ceiling. Food prices are a further likely pressure, thanks to worries about a smaller-than-anticipated harvest for the second year in a row," stated the analysts.South Africa's maize yields for the 2007/08 season fell by 82 000 tons last week to 274 000 tons compared with yields the week before. So far, farmers have delivered 4.257 million tons to the silos, about 2.8 million tons away from the projected 7.050 million tons.
There are some expectations, however, that the harvest could be cut as low as 6.80 million tons, with talk that the harvest is not going well.The repo rose as high as 13.5 percent in September 2002, before receding to 7 percent in April 2005, with the current tightening cycle of 250 basis points beginning in June 2006.South Africa's key consumer inflation data for June is due at 11.30am on Wednesday and PPI on Thursday at the same time. The next meeting of South Africa's Monetary Policy Committee to decide on interest rates takes place on August 16. - I-Net Bridge

The rise in South African residential rents is picking up steadily, driven particularly by Johannesburg and East London that are powering ahead, according to the latest Trafalgar property index."And this is just the start of substantial rises over the next decade and more," says Andrew Schaefer, MD of national residential letting agents Trafalgar. "Rents rose year on year by 6,43% from June 2005 to June 2006, 6,88% from December 2005 to December 2006 and have risen 8.26% between June 2006 and June 2007. That doesn't seem dramatic but the index has grown from 100 in 2003 to 129.3 in 2007, so the average tenant is paying nearly 30% more than he did three and a half years ago. East London tenants are paying 51% more and Johannesburg and KwaZulu Natal 33% more" Schaefer says that constant rent rises are inevitable. "Firstly, household formation or demand for rental accommodation appears to be far outstripping the creation of new stock or supply," he adds. "It's a pity the exact data are not readily available.""Second, it's not just population growth that is driving demand, although we get the feeling that the number of foreign Africans coming into SA is greater than statistics indicate. It's mainly being driven by the rapid reduction in household sizes. According to the University of South Africa, household sizes have dropped from 4,48 in 1996 to 3,69 in 2005 and the number of households grew from 9 million to nearly 13 million in the same time. Based on this data we estimate that about 450 000 households are forming each year of which at least 100 000 will be tenants. Other factors affect rental demand as well. For instance, the number of single households that make a large proportion of tenants is now about 25% of all households, up from 12,5 in 1995. "Third is the growing demand from young people wanting more mobility than in the past and finding a choice of good homes for indefinite periods from the growing ranks of buy to let investors. "Fourth is rising house prices tied to increasing interest rates that is pushing more first time home buyers off the property ladder. "And fifth is the slowing development of new apartments and other rental stock by developers faced with rising interest rates, building and land costs and slowing price increases." Pretoria remains the laggard of South African cities with its index at 115 and its rents actually dropping by 0,62% from June to June. Cape Town's rents have improved by 6,8% but at 126 it continues to lag the national index of 129. Johannesburg (up 11.88%) and KwaZulu Natal (7,82%) - mainly greater Durban -- are around 133. East London's increase is ahead of the pack at 13.7%.

The outlook for global property remains sound on the back of economic growth says Mark Appleton, Chief Investment Officer at Barnard Jacobs Mellet Private Client Services who recently returned from an overseas visit to global property investment managers. Appleton says the various geographical areas still offer opportunity although perhaps not at the same levels as seen previously. "There has been significant yield compression across the globe and this has been the major source of performance to date. However the view is that no further compression is anticipated and the focus will be on rental and distribution growth going forward." Appleton says that this will largely be driven by increasing replacement cost which will impact on the level of supply. He says general consensus is underweight the US, Australia and Hong Kong while overweight in Japan, Singapore, Germany, France, and the UK.He says there are concerns around US property due to a slow down in economic growth. "While interest rates will trend down it is primarily economic growth that will drive listed property returns and this is questionable in the US right now," says Appleton who adds that while consumer spending is not as vibrant as the past five years but is still reasonably strong as unemployment remains at the 4% level.Appleton says there are however pockets of growth and value in the US such as hospitality and apartments. "Apartments and hospitality are the growth areas. Hospitality is becoming a target for private equity."He adds that Asia however offers strong growth prospects and although yields are no longer a bargain, growing demand should serve to underpin strong rental growth. "In Singapore for example the Government is looking to double tourism."The view, says Appleton, is that China is offering value especially coming from such a low base. It will benefit from increased internationalism as market opens up and the Olympics focuses international attention.India is also viewed favourably as the other growth engine after China although it has its challenges. India is about five to six years behind China's growth path so there is still plenty of upside. It is also favoured as a business destination due to the strong English influences and hence attractive for business."Between Delhi and Mumbai the vacancy is practically zero, with waiting lists for leases. The current yield is around 7% and this is likely to reduce by about 100 basis points as the cost of property increases."Appleton says that while many of the buildings are of high quality, the conditions are such that even young buildings can look 'worn' quickly."Infrastructure is poor and varies between regions. Many offices require reserve power generators. The roadways are often in disrepair and some developers add their own roads to new constructions rather than wait for the local government". Appleton says shopping malls are being developed with varying success. "India, and perhaps Asia more broadly, represent good investment opportunities as many members of society have broken into the middle class and are now cash rich. The Indian work force in particular is easily employable, speaks English well and is highly motivated."Japan is also viewed favourably by investors. Appleton says due to low inflation and low interest rates there is a huge appetite for yield among domestic investors. The level of office take up is high and there are supply constraints resulting in little new office development in the last five years. Japan also faces natural geographical constraints and is prone to natural disasters. "Thus far demand has been relatively low, so there is no incentive to supply. This is likely to change. The typical yield on the property companies is in excess of 3% and represents reasonable pick up over the government bond at 1.7%."Appleton says property pundits are bullish on Germany which is still in the early part of the business cycle. He says that strong growth for property is continuing in the former East Germany and Berlin in particular is offering investment opportunities.In general, higher returns are expected from Europe, on the back of better rental growth, than from UK. Retail is favoured followed by industrial and then offices.In the UK Appleton says the view is that the investment markets are benefiting from a shift in focus of financial firms towards the UK and therefore office space is stretched as a result. "London is the hub of this demand, but the influence does spread out into the regions, especially through retail." Appleton says the demand from corporations is strong to the extent that it is somewhat immune from interest rates and growth rates in rent are currently in the region of 3% and could stretch to double digits in the near future. "However yields are below bond rates and growth will have to be strong to justify valuations." - I-Net Bridge

Township housing boom eludes black estate agents
Business Report
July 19, 2007
By Sibongile Khumalo
Johannesburg - Lack of marketing skills and tight budgets have been identified as key factors preventing estate agents in townships from reaping the rewards of the booming property market, the Estate Agency Affairs Board (EAAB) has indicated.The board hopes the recently launched National Qualifications Framework training modules will address problems of professionalism and improve business skills.Andy Tondi, chairman of South African Black Property Practitioners, called for initiatives to strengthen the township estate industry to meet the current activity."It is of great concern that the much talked-about housing boom in the township was not enjoyed by the budding black estate agents," said Tondi."The wealth of the industry is taken away by large companies that have taken full advantage of the market. Right now the benefits of the boom do not match the increasing hype around the market."Bataung Matsau, managing director of BS Properties in Johannesburg, said the booming township property market was due to the shift in mind-set around ownership of property."For a long time the majority of township houses were passed down to family members," he said. "Selling was not regarded as an option."
He lamented the inability of township agents to make the most of the ongoing vibrancy of the market.Chief executive of EAAB Nomonde Mapetla said the demand in the township housing market had started to show vibrancy in 2004."Most agents operate on very tight budgets or nothing at all. This puts them in [a] situation where they are unable to market themselves and fail to attract sales."Training would not only equip agents on industry norms and practices, but would provide skills to help attract overseas clients.Mapetla said there was a need to prepare agents to deal in commercial property that was currently showing appreciation in the townships.There has been a rapid increase in the number of estate agents operating in these areas since 1994. In 2006, more than 70 000 estate agents were registered with the board.

Business Day Posted to the web on:
18 July 2007
Confidence high as construction rockets ahead
Mariam Isa
Economics Editor
BUILDING confidence in SA rose back to near a record peak in the second quarter of this year, reflecting a boom spurred by public spending and pent-up demand for affordable housing, an independent survey showed yesterday.
The FNB building confidence index rose to 88 points from 87 in the first quarter of this year, edging back towards a historic high of 89 posted in the fourth quarter of last year.
FNB chief economist Cees Bruggemans said improved confidence in the building industry reflected higher overall economic growth, which quickened to an average annual rate of 5% over the past three years from 3% earlier in the decade.
“We have barely started. It looks like we are in an extended growth cycle which is likely to last another 7-8 years,” he said.
Release of the survey coincided with official data yesterday showing that capital spending by the government rose by 25,4% to R71,8bn in the financial year which ended in March, with expenditure on land and buildings soaring by 149% and construction up by 23,1%.
A slowdown in public sector capital expenditure is expected this year, before the pace picks up again in 2008, the figures from Statistics SA showed.
Construction is playing an increasing role in the economy, with the sector expanding a blistering 21,3% in the first quarter of this year — a 17-year record.
At the same time, the government’s R416bn infrastructure spending drive is having positive spin-offs, although it focuses on ports, roads, railways and soccer stadiums.
The FNB building survey showed that confidence in the nonresidential sector, which covers commercial buildings, was steady at 94 points but fell in the residential sector to 82 points from 86 in the first quarter.
This suggested business conditions there had been hit by the cumulative two percentage point increase in lending rates last year, Bruggemans said.
The Reserve Bank raised its key repo rate by half a percentage point to 9,5% again in June, and many analysts expect another hike at its meeting next month. But the residential slowdown is unlikely to last, the survey carried out by the Bureau for Economic Research showed.
“Regarding the business outlook for the third quarter, residential contractors said they expected business conditions to remain more or less stable, but an improvement in the tempo of building activity is expected,” FNB said.
Bruggemans said there was “enormous pent-up demand” for affordable housing units worth R170000-R250000 from the expanding black middle class.
FNB commercial property strategist John Loos said builders in the nonresidential sector were “very optimistic” and “upbeat” about short-term prospects but they also indicated that shortages of skilled labour and inadequate supplies of materials were “seriously constraining” operations

Slowdown in building cost inflation may be short-lived
Business Report July 6, 2007
By Roy Cokayne
Pretoria - Residential building cost inflation appears to be slowing after a significant surge last year, but the decline is expected to be short-lived, according to FNB Commercial Property Finance's residential building cost index.John Loos, a property strategist at FNB Commercial Property Finance, said it was possible contractor pricing power was beginning to suffer from rising interest rates.However, Loos said the formal residential market had experienced much competition for inputs from other sectors, which could be a driver of building cost inflation until 2010."The first-quarter slowdown in year-on-year building cost inflation may be short-lived," he said.The index reflects the average building cost a square metre charged by contractors in the formal residential property sector, but excludes low-cost housing.It measured the average building cost at R4 883.91m2 in the first quarter of this year, down from R5 104.12m2 measured in the fourth quarter.Although there was a slight decline in the first quarter of this year, current levels "are a far cry from averages of around R2 000m2 in 1998 just prior to the property boom", he said.Year-on-year building cost inflation was measured at 26 percent for the first quarter, significantly lower than the 39.2 percent peak in the fourth quarter of last year.
Loos said this decline "ends a strong cost surge that began at the beginning of last year".He said the previous year-on-year building cost inflation peak was at 24.4 percent in the first quarter of 2004, which arguably reflected the high degree of pricing power of contractors due to extremely strong growth in demand at the height of the property boom.However, Loos said materials cost inflation at that stage was relatively low and skills shortages less of a constraint while affordability was arguably less of an issue than it was today."Contractors are arguably faced with greater input shortages today compared with a few years ago."Supply and demand theory would suggest that, given that residential building activity tapered slightly in 2005 and 2006, one should have seen a moderation in building input cost inflation."However, residential property development competes with other sectors for many inputs... For many infrastructure projects, 2010 is a 'deadline' fast approaching. In addition, the banking sector's affordable housing drive is beginning to step up a gear or two," he said.Meanwhile, a R700 million housing project at Windmill Park in Boksburg was unveiled by First National Bank yesterday, boosting its expenditure on housing projects to R2.7 billion.

'Property to the people' could be the new ANC rallying cry
Business Report June 29, 2007
By Quentin Wray
Two key strands of thought are running through the policy proposals on land reform at the ANC policy conference, including the need to free up land for the poor in traditional rural areas and to discourage the foreign ownership of land - or at least land that is not used regularly.For example, the delegation from KwaZulu-Natal - where there is a swathe of rural land under the control of traditional chiefs - has noted that current forms of "ownership" cut off the people from "the economic value of land".It refers specifically to Ngonyama Trust land, which falls under King Goodwill Zwelithini, and other land under "traditional authority structures".The North West delegation argues that agrarian reform "must become one of the fundamental and key programmes aimed at the economic development and upliftment of people" in rural areas. This is another province with great tracts of land under chiefs' control.The province noted that Reconstruction and Development Programme houses - including township houses - had no title deeds, making it hard for owners to use them as collateral "for economic engagement".This province suggests that disused or underused state land should be transferred to municipalities for disposal and used for "local economic development", providing assets to the historically disadvantaged.While these issues have been considered at previous ANC conferences - with little progress in implementation - the pressure is on the ruling party to fast-track the redistribution of at least 30 percent of land to the disadvantaged by 2014.SA Communist Party deputy secretary-general Jeremy Cronin said these issues would be thrashed out today in commission sessions, and it was too early to tell what progress would be made.However, delegates said compromises would likely be forged.Limited foreign ownership leaseholds could be considered, while ways of carving up rural land could involve collective schemes, including an arrangement with the chiefs. A priority will be opening the way for the rank and file to borrow capital against property assets for the start-up of small businesses.

SA Corporate rental income rockets
Business Report July 9, 2007
Johannesburg - SA Corporate Real Estate Fund Managers' first-half rental income increased as faster economic growth fuelled demand for industrial buildings, it said on Friday.The company achieved increases of between 12.5 percent and 30 percent for major industrial properties in Gauteng, and it planned to raise rents by between 16 percent and 47 percent for similar properties in KwaZulu-Natal, it said. - Bloomberg