As seen within the South African market, the choice of asset classes is limited to the traditional four: office, retail, industrial and residential. These asset classes may perform well in the long term but are expected to churn out short term returns consistently. This creates a mismatch of expected return and performance. The reason why the expected returns are not met is that investors do not anticipate the cyclical nature of the economy. Often, when the asset class under performs, investors dump the asset, taking an immediate loss as opposed to riding out the property cycle and waiting for such asset to perform.
The defining feature for the property sector is that capital behaves very differently in South Africa, when compared to the rest of the world. Two components influence this difference. Firstly, the rand, unlike the dollar, Euro or British pound is very liquid. There is also a much higher portion of pension funds, relative to GDP, under management. This is evidenced by South Africa having some of the largest pension funds in the world, with the Government Employees Pension Fund being around the eighth largest globally.
Topic Two of the Round Table Discussions was conducted at the end of May.
Quoin Online and URERU have joined to create round table discussions which investigate and facilitate discussions on how the pandemic impacted the property industry and its processes.
Topic two was facilitated by Francois Viruly and Robert McGaffin from URERU and our two participants, Deon van Zyl, Chairman of the Western Cape Property Development Forum, and Derek Henstra, managing partner at DHK Architects.
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The coronavirus has rocked the entire world, shaking every corner of the globe with a fury that has been unmatched since the Second World War. A week is a long time in political life and even more so during this time. Markets are changing as we speak.
Green building has hit the mainstream, and it has radically transformed the property market. With the sustainability of the environment at the epicenter, various construction-techniques and eco-friendly materials have been implemented to reduce the impact of construction and buildings on the environment.
Last week, we took a look at key construction techniques, this week we take a look at essential materials needed to go green. If you’re looking to step on to the green scene, here are a few key materials that are crucial for your green building project:
It is no secret that time and technology share an intimate correlation. As time changes, technology develops, with one central goal: to simplify the human experience. This correlation also appears to be a steady force in the property sector. Despite simplifying and bettering the human experience, it has been proven that developing technology has an adverse effect on the environment. In the mid 2000’s, tables were turned in the property sector, and new technology was implemented to promote the sustainability of the environment, and the quality of life. Buildings were designed and erected with the specific purpose of preserving natural resources and improving the quality of life. Below we take a look at 6 construction techniques implemented to establish a greener community on the rise: