MD's Message - July 18
Category Newsletter: Message from MD
Dear Friends, Property Investors and Enthusiasts,
June was certainly a busy month! We completed and handed over a number of projects and to keep up with our current momentum we have already moved onto a number of new sites.
In our June newsletter I spoke about the dire straits in which Aveng Pty Ltd found itself. Since then yet another JSE listed construction company has gone into liquidation. The demise of Basil Read does not make for pleasant reading. Also one of the largest construction companies in the country a mere decade ago, their share price was a measly 4c when trading was suspended last month delivering the death knell to an iconic 68 year old company.
With the news of yet another fuel price hike this month the South African consumer will definitely feel the pressure from all directions. The fourth increase in so many months will have a knock on effect with an increase in public transport and food on the cards. These increases can surely only mean a negative effect on the inflation rate.
On a more pleasant note I am pleased to report that our first residential complex in our Bergbron development to be earmarked for the rental market is fully let. The 67 unit Bexley residential estate was let within a short two month period. This indicates some resilience in the residential rental market as consumers opt to rather rent for a period of time before they contemplate the purchase of their own home. Our marketing teams have now focused on the 161 home Kingsbury development that is also situated in Bergbron. Here two bed, two bath apartments will be let from a very affordable R 6050 pm! A number of units have already been secured and the first tenants will be taking occupation from the 1st of August.
Author: Nico Louw
