They came, they saw..they went home

Hau, life in the white suburbs eish, not possible with the plesmah teevees, the 4 by 4s, private edukashun.

So what was this about a "black middle class", the so-called black diamonds? Is it beginning to unravel already? What, no more good AA jobs available, thinning out a bit, too much demand, not enough supply? I have an idea. Start your own enterprises. Compete for jobs on equal terms. Yeah, like them whiteys have to do. It's called doing it on your own and living within your means.

See also;
Vehicle repossessions by WesBank increased by 93 percent between July and September compared to the same period last year, Business Report said on Thursday. The total number of repossessions by banks are between 6000 and 7000 per month.
South Africans are now spending up to 77% of their monthly income on debt servicing.
Things are likely to get worse...
Tsunami about to hit South Africa

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"We're moving back to the townships"

Many property buyers previously living in the suburbs are back in the townships.

As home affordability hits hard on property owners, some are selling their properties in the suburbs and going back to the townships where the property market is still booming.

According to the FNB Township Property Barometer Q3 2008 released today, the township markets are also slowing down due to general economic growth, inflation and interest rates.

John Loos, FNB Property Strategist said estate agents interviewed for the barometer identified an increase in buyers from the suburbs to the townships.

Loos said, despite a slow down in the property market, the townships are still in good shape and what is driving the boom in the townships is the shortage of stock. Durban had the highest stock shortage of 68%, Cape Town 38% and Johannesburg 31% and this has pushed property prices up as supply cannot meet demand. In Gauteng, 31% of township buyers are believed to be from the suburbs, 26% in Cape Town, and 24% in Durban.

Estate agents said Soweto alone has a 38% of buyers coming from the suburbs.

Loos said Soweto may be starting to reap the benefits of infrastructure upgrades and retail developments, making it a more attractive place in which to live for people with purchasing power. "In the longer term, many townships with Soweto leading the way, should be boosted by major infrastructure upgrades. This includes retail developments and the move from being dormitory towns to having their own economies making them more appealing places to live and provide more jobs and income, said Loos."

Lawrence Molepo, an estate agent for Gilbert Estates in Protea, Soweto, said the property market is doing very well and there is a shortage of stock in some areas. He said while there has been an increase in the number of buyers returning from the suburbs, some are moving from other parts of Soweto to buy in Protea because it is the most sought after place.

"Demand for property in Protea and Diepkloof Extension is huge and more people are looking to buying property in these areas," said Molepo. Property prices in Protea where you have some upmarket houses, range from R525 000 to R950 000 and this includes off plan.

Asked about what is driving the market in Soweto, he said, without a doubt, the infrastructure and the shortage of stock in areas where there is demand, is pushing prices up making it a preferred area to buy into.

"The Maponya Mall has boosted the property values particularly those around the mall area," he said.

In Pimville before the mall opened, a four-roomed house used to cost less than R100 000 now they have gone up to R300 000. He said buyers from the suburbs would usually have sold their properties for R750 000 and they can buy properties for less than R500 000 in the township.

An upmarket house in Diepkloof Extension where most Soweto business people live can cost up to R1m while in Pimville they cost R800 000. He added that the positive growth in the residential property market is likely to encourage developers to embark on large scale commercial properties including offices for people who work and stay in Soweto.