The South African property sector is all set to become a place of attraction for investors along with the acceptance of international measurements standards. The country will take a move to increase buyers confidence and will look forward to enhance consistency to improve property asset value which is an issue for developers, investors and occupiers.
Changing floor investments are widely known to harm capital growth, rental prices and maintenance costs. Neil Gopal the SAPOA chief executive officer explained Moneyweb: Global Investors, users and occupants of the building have fought for the fact that consistent, International property standards does not exist.” But by adopting the proposed International Property Measurement Standard will change the scenario enabling a globally applicable method for measuring property to take root, analyzing the differences over Internationally accepted calculations principles.
Mr. Gopal further told the news providers that “The most important benefit which these universal valuation should go ahead are the increased asset ownership between the countries as well as to local property owners and members of SAPOA.” As a result the reporting procedures will occur from the earliest building stages through to the leasing and management of properties.
Among 50 countries participating in the initiative to stand for an International Property Measurement Standard, SAPOA is one of the 22 committee members. Dubai is one of the first countries to adopt the measures, but local discussions will take place at the global levels to debate on the practicality and viability for the individual property markets.
To implement the initiative SA will set an authority that may help it to increase its speed of growth. The house price statistics from the Global Property Guide states that during the year to Q2 2013, the indexed price of medium sized apartments increased by just 0.2% year on year. This rate is lower than the annual growth rate for Q1 2013 and Q4 2012 during which the growth rates were 2.86% and 3.33% hike. Improving the investment method in South africa will be beneficial to the slower growth.
