Within the eLan camp, our Project Teams are working on a number of exciting initiatives this year that will take us out of the SA borders, moving into the areas of Swaziland, Mozambique and Mauritius. In this newsletter, we will introduce you to Royal Jozini based in Swaziland. After a series of trips to Mauritius we have also secured a magnificent tract of land on the West Coast. We are currently applying for re-zoning of the land in order to start developing an IRS (Integrated Resort Scheme). The land has beach access, a marina and magnificent views of a lagoon, but more about that in the months to come…

Moving further abroad I will be going to MIPIM in Cannes, France this month. MIPIM is a trade show targeted to the international property trade with 21 000 participants. eLan has been selected as one of 15 companies worldwide to present to this investor audience. This is an unbelievably positive opportunity for me to not only showcase our latest world-class development, Blythedale Coastal Resort, but also South Africa as a whole.

Mark Taylor
CEO eLan Developments

Peter Coulon has recently joined the eLan stable as a Land and Conservation Manager. His responsibilities include ensuring any natural areas within eLan developments are correctly managed, and that sound wildlife management principles are applied. This knowledge allows eLan to determine (in the early stages of a project) the value of the area as far as natural aspects are concerned as well as the wildlife potential. With over 23 years experience with the Natal Parks Board and Msinsi areas, he has worked with both private and communal land, in small and large protected areas and has applied his wealth of knowledge to all of our Estates. Peter is currently working with Blythedale Coastal Resort, Royal Jozini, New Forest and Avenol. Together with the Estate Management at Simbithi Eco-Estate his next project is the introduction of forest dwelling game species into Simbithi later this year.

Royal Jozini, Home of the Big Six
The eLan Group has entered into a Joint Venture to develop a Big 5 Game Reserve in Swaziland. The 25 000 hectare property incorporates the northernmost section of Jozini Dam, the Lebombo Mountains to the East bordering Mozambique and Swaziland to the North and West. The project has received the full support of the Swaziland Government and Swaziland King, His Majesty King Mswati III (acting in his capacity as Ngwenyama Trustee for the Swazi Nation) as being one of the biggest projects in the country. The economic spin-offs are paramount as we look to incorporate an affordable, social housing component.

Layout and phasing is currently under review with our Project Team together with the introduction of game and the incorporation of this land into the Transfronteir Park. The sixth element of the Big 5 comes in with some of the best Tiger Fishing waters in the world, rounding off the land and water elements of activity!

Purchase options will include land together with completed bush lodges, set in camps within the reserve. Pricing will be affordable and aimed at the middle to upper income levels. Purchase options will be divided between those wishing to live within the Big 5 area, and those seeking the less potentially dangerous Nature Reserve side, where their families can take part in activities freely. However, both equally offer an exciting set of facilities!

We are looking to launch this development toward the middle of this year and will continue to keep you updated on the progress monthly.

This decision needs to be contextualised on two levels: the threshold and the "other" rates of tax (5% and 8%).

The primary threshold was last year widened by a whopping 163% - from R190 000 to R500 000. This was excellent news for homeowners, and is encouraging the secondary market. This was aided by R23 bn being spent on government subsidies for 500 000 housing units. Last year's jump in the threshold brought SA in line with international norms. In the UK, the threshold is £120 000 (R1.67 m). This is 57% of the average UK house price of £210 116 (R2.9 m). This is exactly the same percentage as in South Africa where the average price is R877 000, according to the ABSA House Price Index.

The second and third thresholds were also increased significantly last year and - together with the threshold increase - promised R4.5 bn relief to homebuyers. This must be seen against the background that last year the Government collected more than double the transfer duty it did a mere 4 years ago (due to rapidly rising property prices and an increase in sales volumes).

SA transaction costs are still high compared to international norms. As shown in the table above, the maximum rate is R25 000 plus 8% on a property over R1 m. In contrast, the maximum UK transfer duty tax is half of that - 4% for properties over £500 000 (R7 m).

With regards to Companies, CC’s and Trust’s, the flat rate levied on the acquisition of property by persons other than natural persons remains at 8% of the value of a property.

Capital gains
Capital gains on the disposal of assets are included in taxable income. The maximum effective rate of tax remains at:

This superbly large and spacious modern home within Simbithi Eco-Estate is up for sale! There is no better buy on the North Coast, within a secure and natural environment, just 20 minutes from Durban and 5 minutes from the new King Shaka airport. Offers from R5.2 million.

The proposed legislation restricts all new residential, commercial and industrial development within 100 metres of the coastline’s high water mark and limits rezoning of agricultural land for other use within one kilometre of the high-water mark.

The proposed legislation forms part of the draft Coastal Management Bill, aimed at protecting the ecological integrity, national character, economic, social and aesthetic value of coastal property and to assist in ensuring its natural state for years to come.

The result of this Bill is that the proposed buffer zone imposed on current agricultural land would place severe restrictions on future developments of golf resorts and other leisure developments next to the coastline. However, estates such as Simbithi Eco-Estate and Blythedale Coastal Resort have certainly appreciated in value since the draft of this Bill came into play!

The restrictions, if enacted will only further heighten buyer interest in both existing and under construction developments as coastal properties become scarcer. So if you own at Simbithi or Blythedale Coastal Resort, consider it a rare commodity!

- Elna Moolman & Gina Schoeman, Group Economists, Standard Bank

Despite the restraints on households’ cash flow, personal financial situation compares reasonably favourable with historical settings, which supports our view that nominal house prices are unlikely to fall. Aggregate house prices are expected to show very little, if any, growth in the near term, but growth is expected to pick up towards year-end, especially if the SARB cuts interest rates in the final quarter of the year and early next year as we expect it to.

You’ve seen Blythedale Coastal Resort everywhere, and continuing to drive brand awareness for this magnificent resort, we’re on the road too! Come to Blythedale and enjoy a site tour in one of our newly branded 4x4’s…

www.blythedale.co.za won a 5 Star SA Web Award for content and design! SA Web Awards is managed by a team of South African web professionals whose sole purpose is to identify and celebrate top web design talent in South Africa so we accept this award with kudos.

Check us out at www.blythedale.co.za!