Latest news with #AdrianGoslett
The Citizen
3 days ago
- Business
- The Citizen
Cape Town continues to lead national house price growth
The South African residential property market continues to gain momentum, with Stats SA's latest Residential Property Price Index (RPPI) revealing a national annual house price inflation of 5,2% in January 2025 – up from a revised 5,1% in December 2024. On a month-to-month basis, house prices rose by 0,4%, signalling a strong start to the new year. According to the RPPI, the City of Cape Town was the primary driver of annual metropolitan inflation, recording an impressive 8,5% year-on-year increase, contributing 3,1 percentage points to the overall metropolitan inflation rate. In contrast, the City of Johannesburg recorded a modest 2,3% annual increase, contributing 0,5 percentage points. 'Cape Town's sustained growth reflects high buyer demand, particularly in the upper price brackets and coastal lifestyle segments,' says Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa. Looking at the trends, some notable outliers include areas like Hout Bay, which has experienced a 49% increase in average sales prices compared to the pre-pandemic market in 2019, going from R3m in 2019 to R4.47m in 2025. Llandudno was a significant outlier, growing by 135% since 2019, from an average of R11.5m to a staggering R27m in 2025. Apart from the suburbs that are outperforming the national averages, Goslett expressed his optimism following the release of the latest property inflation figures and encourages both buyers and sellers to take advantage of the current market dynamics. 'The latest figures reinforce that South African real estate market is strengthening and prices are starting to rise. This steady yet encouraging rise in property prices suggests that buyers still have a window of opportunity to enter the market while prices remain comparatively accessible, ahead of any potential sharper increases later in the year,' Goslett notes. Whether you're a first-time buyer, investor, or seller, understanding the nuances of regional property trends is crucial. 'Each suburb will have its own unique trends, which is why it is helpful to partner with a local real estate professional for tailored insights to help you navigate this dynamic environment,' Goslett concludes. Issued by: Kayla Ferguson
The Citizen
7 days ago
- Business
- The Citizen
3 property investment strategies to build wealth in uncertain times
In today's unpredictable economic landscape, property investment remains one of the most reliable methods for building and preserving wealth. Whether it's VAT hike reversals, interest rate changes, or global political tensions, savvy investors know how to navigate volatility to their advantage. The secret lies in adopting the right strategies tailored to uncertain times. 'The current climate of uncertainty is being felt universally, with geopolitical tensions contributing to economic volatility not just here in South Africa, but across the globe. While challenges exist, we have always seen that the South African property market shows remarkable resilience when approached with the right strategy,' says Adrian Goslett, regional director and CEO of REMAX Southern Africa. Focus on Cash Flow–Positive Properties 'In uncertain times, liquidity and stability become paramount. Cash flow–positive properties (those that generate more rental income than their monthly expenses) can offer a steady income stream, acting as a buffer against broader financial shocks,' says Goslett. For those who would like to put this advice into practice: Avoid maxing out your credit. If interest rates increase, this could put you under strain. Before making a purchase, analyse all costs, including mortgage repayments, maintenance, property management, and vacancy rates. Use conservative estimates when calculating expected rental income to ensure the property remains cash flow positive even in downturns. Diversify Your Portfolio Geographically 'Market conditions vary from region to region. What might be a buyer's market in one city could be a seller's market in another. Geographic diversification helps spread risk and reduces exposure to localised downturns,' says Goslett. For those who would like to put this advice into practice: Don't overlook secondary or emerging markets just outside city centres. They often offer better value and growth potential than saturated urban centres. Monitor regional economic drivers such as job growth, infrastructure development, and population trends. Adopt a Long-Term Mindset 'Property values generally appreciate over time despite short-term fluctuations. A buy-and-hold strategy enables you to ride out volatility while building equity,' says Goslett. For those who would like to put this advice into practice: Invest in low-maintenance properties to reduce long-term upkeep costs. Choose locations with strong fundamentals like employment opportunities, school zones, and transport. 'Uncertain times often bring the best opportunities for those who are well-prepared. By focusing on smart, resilient property investment strategies, you can not only weather the storm but also position yourself to thrive when stability returns. Remember, the key is not to fear uncertainty but to understand how to leverage it to your financial advantage,' says Goslett. Issued by: Kayla Ferguson
The Citizen
20-06-2025
- Lifestyle
- The Citizen
Warm up for less: 3 affordable energy-saving home upgrades
As the chill of winter sets in, the household electricity bill begins to climb. Thankfully, keeping your home comfortable doesn't have to come at the expense of high energy bills or environmental impact. By making smart choices and small investments, you can significantly improve your home's energy efficiency during the colder months. Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa, says that electricity costs have been steadily rising, placing increased pressure on household budgets. For example, for a typical household consuming 800 kWh per month, a Homelight user could go from R1636 last year to R1729 this year; and a Homepower user can go from R2456 last year to R2727 this year. 'Homes that are energy-wise are becoming increasingly popular among buyers,' he notes. 'Homes with off-the-grid features like solar panels often sell faster and at higher prices, as buyers are willing to pay a premium for reliability and reduced running costs.' However, installing solar power can be a bit of a stretch for most households. There are other ways to keep your home cosy this winter without breaking the bank. REMAX Southern Africa shares a few energy-efficient upgrades homeowners could try: Seal Drafts and Insulate One of the most effective ways to improve energy efficiency is by sealing gaps and cracks where warm air escapes. Common culprits include windows, doors, and areas around plumbing or electrical outlets. Weatherstripping doors and windows can prevent heat loss, caulking around windowsills helps close tiny cracks, and insulating your ceiling space can help keep heat inside where it belongs. Add rugs, curtains & throws Adding rugs, curtains, and throws is a simple yet effective energy efficient way to warm up your home during the winter months. Rugs help insulate floors, especially on tile or wooden surfaces, preventing heat loss and keeping your feet warm. Thick curtains act as thermal barriers, trapping heat inside and blocking out chilly drafts from windows—particularly when closed at night. Meanwhile, throws and blankets not only add a cosy aesthetic to your living spaces but also provide extra warmth without relying on additional heating. Switch to a gas cooker Switching to a gas cooker during the winter can be a smart move for both warming your home and lowering your electricity bill. Gas cookers generate ambient heat that naturally warms up the kitchen and nearby areas, providing additional warmth without the need for extra electric heaters. Unlike electric stoves, gas cookers are often more energy-efficient and cost-effective, especially during peak electricity pricing periods. Making your home more energy-efficient this winter doesn't have to involve major renovations or costly investments. Simple, low-cost upgrades can make a noticeable difference in both comfort and savings. 'Energy efficiency is no longer just a nice-to-have—it's a smart, forward-thinking investment. With rising electricity costs and increased demand for greener homes, making these changes today not only enhances your quality of life this winter but also boosts your home's appeal for future buyers,' Goslett concludes. Issued by: Kayla Ferguson
The Citizen
06-06-2025
- Business
- The Citizen
Why winter is a hot time to buy property
Contrary to popular belief, the Winter months are not a dead zone in the South African real estate market. In fact, data compiled by REMAX of Southern Africa dispels the myth that property sales go quiet during the colder season. According to internal national sales figures for REMAX Southern Africa, June, July, and August consistently reflect slightly higher transaction volumes throughout the year. This surprising trend illustrates that Winter offers fertile ground for property transactions, challenging the notion that warmer months are inherently better for buying and selling real estate. 'While our stats pick up from June, our registered sales figures tend to peak in September and November and then drop off in December and January,' says Adrian Goslett, regional director and CEO of REMAX Southern Africa. But these peaks don't necessarily indicate when buyers are most active – they reflect when sales are officially registered. In South Africa, it typically takes up to three months for a property sale to move from the point of offer to full registration in the Deeds Office. This means that homes registered in September and November were often secured by buyers during the Winter months of June, July, and August. 'When you account for the time lag between sale and registration, it becomes clear that Winter is when many buyers are actively making offers,' Goslett explains. While sales figures appear to dip in December and January, this is also easily explained by external factors. These months coincide with South Africa's peak holiday season, during which many buyers and sellers are on vacation, and the Deeds Office closes for a period in December, creating natural delays in the registration process. 'It's not necessarily that the market goes quiet—it's that administrative processes slow down over this period,' says Goslett. 'Buyers and sellers still transact, but you'll only see those deals finalised and registered in the months that follow.' According to Goslett, understanding when the property market is most active is essential because it allows buyers, sellers, and real estate professionals to make smarter, more strategic decisions. 'For buyers, knowing the peak periods helps them avoid fierce competition and potentially negotiate better deals during quieter months. Sellers, on the other hand, can time their listings to align with periods of heightened buyer activity,' he notes. With the winter months fast approaching, South African sellers are encouraged to shed the outdated view of seasonal lulls. Winter might feel cold; but in property, it's heating up. 'Ultimately, seasonal trends can influence pricing, speed of sale, and the overall success of a property transaction. But each suburb can have its own unique trends. Speak to your local real estate professional for some insights into what's happening in your specific area and how to best position yourself in the current market conditions,' Goslett concludes. Issued by: Kayla Ferguson
The Citizen
29-05-2025
- Business
- The Citizen
Understanding how rental escalations work
The latest PayProp Rental Index revealed that the average rent in South Africa now sits at over R9 000 following a year-on-year rental growth of 5.2% for Q4 2024. This steady rise in rental figures spotlights the importance of understanding how rental escalations work. Whether you're a tenant or a landlord, understanding this concept is key to managing property costs and income effectively. Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa, explains that rental escalations are a mechanism designed to keep rent aligned with inflation, market trends, and property maintenance costs. 'The most efficient way to handle rental escalations is to have a pre-agreed annual increase in rent built into a lease agreement. This helps to set tenant expectations up front, avoiding surprise hikes. It also helps both parties plan their financials with predictability,' he explains. There are various ways annual escalations can be expressed in a rental agreement. Typically, the increase amount can either be linked to inflation or could be specified as a percentage, but each lease is different. 'Escalation rates are not fixed by law in South Africa but are negotiated between the tenant and landlord, typically before signing a lease if it is included in the agreement. A standard escalation rate in South Africa ranges between 6% and 10% per annum, though this can vary widely,' Goslett explains. Factors that typically influence the agreed rate include: Inflation rate (CPI): Landlords often base increases on inflation to ensure the rental income keeps pace with cost-of-living increases and property expenses. Currently, inflation is at an historic low of 2.7% (CPI): Landlords often base increases on inflation to ensure the rental income keeps pace with cost-of-living increases and property expenses. Currently, inflation is at an historic low of 2.7% Market conditions & demand : If rental demand is high, landlords may justify higher escalation rates that are above inflation. If the rental market is in the tenant's favour (e.g., high vacancy rates), there may be room to negotiate a lower escalation rate. : If rental demand is high, landlords may justify higher escalation rates that are above inflation. If the rental market is in the tenant's favour (e.g., high vacancy rates), there may be room to negotiate a lower escalation rate. Length of lease: Longer leases may have more moderate escalations to retain reliable tenants. Overly aggressive escalation rates can lead to tenant turnover, which in turn may cost more than the increased income due to vacancies and marketing. As rental prices continue to climb, Goslett emphasizes the increasing importance of understanding rental escalations. 'For tenants, it's about protecting affordability. For landlords, it's about maintaining the value of their investment. With proper awareness and communication, and through the help of a reliable rental agent, both parties can navigate rental escalations effectively and fairly,' Goslett concludes. Issued by: Kayla Ferguson
