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Property News

First-rate line-up of speakers to address the many uncertainties and opportunities facing the property industry at upcoming Rode events

First-rate line-up of speakers to address the many uncertainties and opportunities facing the property industry at upcoming Rode events


Property economists Rode & Associates’ annual events are to be held in August this year in Cape Town, Johannesburg, Port Elizabeth, Bloemfontein and Durban.

About booms and busts


The most recent Absa House Price Index indicates that nominal house prices have now been contracting for three months year on year. The latest figure shows a decline of 5% since April 2011. As a result, house prices are in real terms moving closer to their long-run trendline, aided by high building-cost inflation (which is now much higher than consumer inflation). Lucky South Africa, your bubble is deflating; not bursting!

Rode 2012 events to address challenges facing the property market


With the month of May almost at its end, now is the time to note the following events which will be taking place in August 2012:

Industrial rentals still going nowhere


For the time being, no improvement in the demand for industrial space is discernible, as vacancy rates continue to move sideways.

Booming Sandton leading the way


There are early indications that the grade-A office market might be staging a recovery. The rally is being led by bellwether Sandton CBD, which showed phenomenal rental growth of 16% in the fourth quarter of 2011.

Building-construction industry in the throes of stagflation


Not only does the building-construction sector remain in the doldrums, it is now apparently also entering a period of accelerated inflation.

Houses overvalued by 25%? A rejoinder


It appears estate agents and house investors and other stakeholders in the housing market have experienced serious anguish and denial following the launch of Rode’s Report (quarter 4 of 2011) on 26 January 2012. At the press conference at FNB’s offices in Fairland, Johannesburg, I stated that houses were fundamentally overvalued by at least 25%; furthermore, that house prices will, as a consequence, decline in real terms over many years (unless one assumes a quick collapse like in the USA).

Moderately growing industrial rentals displaying slack demand


Disappointing for the demand prospects of industrial property must have been the recent moderation in economic activity.

Cement sales growing again, but still no light at the end of the tunnel


Despite sales of cement showing growth again, for the building industry there is still no light at the end of the tunnel.

Office demand still taking a siesta


For now, no improvement in the demand for office space is detectable, this according to the latest issue of Rode’s Report on the State of the South African Property Market (2011:3).