Torn between soccer tickets and their bonds

A young Johannesburg couple who spent thousands of rands on tickets for the World Cup - and who face the added expense of having to house friends and relatives from the Eastern Cape who will be attending some of the games in Johannesburg - now face defaulting on their bond repayments.

The soccer-loving couple, who declined to be named, had not anticipated buying so many tickets.

Estate agents this week said they had heard dozens of "shocking stories" where families faced financial problems due to their spending on tickets. Some soccer fans had even cashed in their investment policies.

RE/MAX Southern Africa chairman Peter Gilmour said the tournament was like "Christmas in July".

"The soccer extravaganza's impact on the real estate market will continue long after the final whistle," he said.

"People are spending money on tickets that they might usually put towards paying their living expenses, such as their bonds. Even if it's only a few hundred rands, we are seeing an increase in retail spend and retail debt."

Gilmour warned that in July, banks could possibly see more homeowners defaulting on their bond repayments.

In addition to paying for soccer tickets, parents have to cope with the expense of having their children on holiday for six weeks.

Gilmour said: "Add increasing utility bills to this and you have an environment where homeowners are under severe mortgage stress."

Aida chief executive Young Carr cautioned: "People will, of course, need to be cautious of overspending at this time."

However, some estate agents disagreed, arguing that the tickets and extended school holidays would not affect household finances.

Lew Geffen, chairman of Sotheby's International Realty SA, said: "There are very few people who are going to get tickets to see more than one or two games at most, and those who are queueing up for tickets now are getting them at discounted prices. We don't think this kind of spend is going to have a major effect on household budgets.

"In fact, we believe the World Cup is going to have a very positive spin-off, not just on the mood and confidence of South Africans in general, but on the economy as a whole for the rest of the year," he said.

Gerhard Kotze, CEO of ERA SA, said: "World Cup ticket sales have really got very little to do with the financial strain that many homeowners are already feeling.

"In fact, I think the positive vibe that is being created around the event may just help to soften the distress caused by the real problems, which are huge Eskom tariff hikes and increased municipal rates as well as small business liquidations and more job losses as we experience the recession aftermath.

"The nation-building and confidence created by the World Cup should, if anything, help us get through the second half of the year in better shape than we could otherwise have expected," he said.

Everything you could want, for a mere R100-million

Try owning one of the country's priciest homes. And there are fewer than 10 on the market that boast asking prices of over R100-million.

The homes range from luxury, multi-level sea-facing apartments to Tuscan-style mansions in gated suburbs.

One of the homes is an 800m² house built on an 8054m² stand in Hout Bay in the Western Cape. The asking price is believed to be in the region of R125-million - which several estate agents believe is a bargain, considering it is in a sought-after area, has eight bedrooms, a landscaped garden, tennis courts, a heated swimming pool, a gym and state-of-the-art security. Another home, in Nettleton Road on Cape Town's Atlantic seaboard, is on the market for R120-million. The 940m² property features four en suite bedrooms, a rim-flow pool, a cinema, three garages and three off-street parking bays.

In Johannesburg, a Sandhurst home which sold for R65-million at an auction in 2008 is back on the market for an undisclosed asking price. But estate agents in the suburb believe that the 8000m² property - bought by Patience Mlengana, whose husband, Mike, is a top Telkom executive, two years ago, could fetch over R100-million. The sandstone palace, which was modelled on Pretoria's Union Buildings, has terraced gardens, a hairdressing salon, seven en suite bedrooms, a tennis court, saunas, steam rooms, and a movie theatre.

Back in Cape Town, an 800m² duplex apartment - the centrepiece of hotel and casino tycoon Sol Kerzner's luxury management company, One&Only Resorts - is still on the market for R105-million.

The flat is one of two duplexes which run across the top two floors of the One&Only Cape Town hotel in the V&A Waterfront. Last year the Sunday Times reported that a Johannesburg doctor, Christiaan Rudolf Oosthuizen, and his business partners bought one of the apartments for a record R110-million.

The almost-identical four-bedroom flats boast large terraces with swimming pools, a gazebo, wine cellar, lounge, study, a music room and sweeping 360° views.

In nearby Fresnaye, a family stand to pocket R100-million if they manage to sell their 1000m² home on a 1789m² property. The house offers "fantastic" sea and mountain views, a large entertainment area, a butler's kitchen, restaurant, bar, four garages and four parking bays.

In neighbouring Bantry Bay, an 891m² home nestled at the foot of the Twelve Apostles mountains is also on offer for R100-million. The house's more unusual features include a sunken lounge with amazing views over the infinity pool onto the ocean.

SA blossoms with hotel rooms

Local hotels have added 9845 rooms in the last three years - but not for the World Cup.

Research compiled by Pam Golding Tourism & Hospitality Consulting shows that 596 hotels, ranging from one to five stars, boast 65872 rooms compared to 56027 rooms in 2007.

Kamil Abdul-Karrim, the firm's managing director, said: "Our data is based on currently operating hotels that are larger than 30 rooms and excludes guesthouses, lodges, hostels, bed-and-breakfast establishments and other 'short-term' accommodation establishments not specifically defined as hotels."

He said it was naive to believe that hotel rooms had been added to take advantage of the tournament.

"The hotel industry is a long-term commitment and suggesting that capacity growth is aligned purely to the World Cup opportunism is irresponsible and sensationalist," Abdul-Karrim said.

Cape is the fairest for sales

More than R717-million worth of residential properties were sold by Pam Golding Properties within Cape Town's city bowl, city central, Atlantic seaboard and southern suburbs between November last year and March.

Of these sales, R323-million worth of homes were sold in February alone.

Managing director Laurier Wener said this region recorded a 47% increase in total sales value compared to the same period last year.

She said that 11% of the properties were priced over R5-million.

"The highest individual sale was R40-million," she said, adding that 68% of all sales in the quarter were cash transactions.

Wener said the high sales volume was a result of the substantial improvements in the city's infrastructure.

"This, coupled with the sustained low interest-rate environment, and a growing sense that the recession has bottomed, has been one of the biggest contributing factors to the improved sentiment among perennially resilient South Africans."

Wener said the company remained optimistic about the prospects for the property market in the year ahead.

"The global recovery from recession will take time, but we are sure it will begin to impact on the property market to the positive within the next 12 months," she said.

"Last month's surprise drop in interest rates provides another welcome boost to sentiment, and the effects of the World Cup will surely be felt in the second half of the year and beyond. We can only hope that this will be coupled with a continued easing off of bank's lending policies, resulting in greater availability of mortgage finance."

Hunting for land with a sea view

Vacant plots with expansive sea views over the Atlantic in Cape Town are fetching millions of rands.

One such property, a 2800m² plot in Bantry Bay, was snapped up for R36.5-million by a Cape Town family eager to build their dream villa looking out onto the sea.

The previous highest price paid for vacant land - measuring 1292m² - in the suburb was R19-million in March last year.

Pam Golding Properties area manager Basil Moraitis said vacant sites on this stretch of coastline remained some of the most sought-after land on the African continent.

The Atlantic seaboard includes Clifton, Camps Bay, Bantry Bay and Fresnaye.

"The area is home to some of the city's best views and most spectacular homes ... and the opportunity to purchase vacant land here is always limited," he said, adding that a mere seven vacant plots had been sold in the past six months.

"But these sales have included multimillion-rand deals and even record prices ... vacant land in a prime position on the Atlantic seaboard is a rarity," Moraitis said.

"Buyers wishing to build their dream homes here frequently have no option other than to buy existing houses and demolish them to make way for their new dwellings."

Three years ago, Pietro Ferrero, the son of one of the world's richest men, bought and demolished a R10-million home in Bantry Bay so that he could build the type of home he wanted. His father, chocolate maker Michele Ferrero, came in at number 62 on the 2007 Forbes billionaire's list, with a fortune estimated at $10-billion.

Said Moraitis: "They (wealthy buyers) realise the scarcity of vacant land in this area, and are prepared to pay top dollar to secure the opportunity to develop their own dream home in an ideal location."

In neighbouring Llandudno, one of the last remaining plots on the seaward side of the road is on the market for R22-million. Measuring 892m², the plot can accommodate a 500m² double-storey home.

East London's castle on offer

A castle in one of East London's wealthiest suburbs in the Eastern Cape is on the market - and the R9.9-million price tag has seen several interested buyers queueing to view the 2 702m² property.

Pam Golding estate agent Hanlie Bassing-thwaighte, said the towering structure, a prime landmark in the city, has created a great deal of interest among both local and international buyers.

Built in 1950 by an eccentric Italian, Jean Baptiste Soffiantini, the stylish seven-bedroom home, which overlooks Nahoon Dam and boasts a view of the sea, is situated in Bonnie Doon.

Soffiantini, who died in 1978, built the house to resemble his original family castle in Italy.

"There is nothing like it in East London," said Bassingthwaighte.

Home buyers set sights lower

A significant drop in property prices in Randburg, north of Johannesburg, has seen scores of buyers flooding the market.

Since early last year, Seeff Properties in Randburg has held an average of 160 showdays a month.

Managing director Tony Ketcher said the selling price for homes in the suburb had dropped from over R1-million in 2007 to R840000 in 2008. Last year the price of flats averaged R786000.

"But most of our sales happened in the R700000 to R1.2-million price bracket," he said.

"It is pertinent to mention that we do not attract the prices that one may find in Sandton and certain suburbs of Pretoria.

"The demographic in Randburg is such that we have a good mix of homes, from the very affordable R300000 up to the top end in suburbs like Northcliff (average R2.5-million) and Eagle Canyon Golf Estate (average R3.8-million)," said Ketcher.

He said that Randburg and the surrounding suburbs had attracted dozens of families who were "lowering their sights in terms of what they could afford".

Weltevreden Park, Northgate, North Riding and Wilgeheuwel also topped the list for those buyers who had been forced by the credit crunch to seek cheaper properties.

Luxury - Island style

South Africans are splashing out on luxury homes in a marina development, Eden Island, in the Seychelles.

Pam Golding Properties' International Projects division has recorded that almost half of all sales at Eden Island are to South African buyers.

The company's project sales manager, Richard Epstein, said his office had concluded R75-million in sales in April.

The MD of PGP's International Division Chris Immelman said: "These sales comprised five apartments, four maisons and two villas, each ranging in price from $355000 to $2.2-million."

More than 200 homes have been completed on the Indian Ocean island, which boasts two private beaches.

Epstein said there were also two restaurants on the island.