Business - Sakenuus

• Low interest rates maintain bond affordability
• KWV in Nordic alliance
• Impact studies streamlined
• Hupstoot vir motorbedryf

ALTHOUGH South Africa currently has the second highest rate of house price increases in the world, with its average house price jumping by nearly R100 000 in the last year, local homeowners are still paying lower monthly bond installments than they were 12 months ago.

According to Mike Bester, CEO of national real estate heavyweight Realty 1 Elk, ResearchWorldwide.com's latest Worldwide House Price Indices show that Hong Kong has edged out South Africa as the country in which property prices are rising faster than anywhere else in the world. 

"South Africa now ranks second on the list of 20 countries monitored, recording a year on year price increase of 24,3 percent," said Bester, speaking in Johannesburg this week. 

But, he added, while average house prices for the first quarter of this year had increased to around R488 500 (up from last year's R391 000 over the same period), monthly repayments on an 80 percent bond over 20 years for an average home are currently R4 167, compared to R4 586 during the first quarter of 2003.

Attributing this to the current interest rate, which at 11,5 percent is at a 21-year low, Bester said that a low interest rate over an extended period helped affordability even while house prices kept increasing. 

This was coming to an end as the likelihood of a rate increase towards the end of the year loomed and prices continued to rise. 

"Prospective buyers need to realise that there is never going to be a better time to buy than now, even though the growth in house prices is starting to slow in some sectors," he said, adding that while the interest rate could rise as high as 14,5 percent by the middle of next year, property prices were unlikely to come down.

"There is going to be increasing pressure on affordability levels from now onwards and prospective buyers need to make a concerted effort to get into the market even if they start off with something that isn't their dream home. They can always upgrade at a later stage."

For those who intended building rather than buying, Bester warned that building costs for the first quarter of 2004 had increased on average by 15,2 percent, from R555 700 in the first quarter of 2003 to a current average of R615 300. 

"That means that it is now R149 100 or 24,2 percent cheaper to buy an existing average house than to build a new one," he said. 

SOUTH AFRICAN wines are popular in Sweden - so popular that South Africa as a wine country is on its way to bypass France in the Swedish market. 

In Systembolagets statistics the trend is clear; South Africa will be a greater supplier of wine to Sweden than classic France before the end of the year.

 During the ten years of democracy, South African wine exports have increased by a thousand percent. Currently only Spain, Italy and France are greater exporters of wine to Sweden.

For KWV International the Nordic countries are one of the company's major focus areas. There has been co-operation with Arvid Nordquist in Sweden from the start. This has resulted in this Nordic alliance.

"We share common views on how the Nordic market should be managed, in the most efficient way," says Sara Norell, Director of Arvid Nordquist Wine and Spirits division.

Bryan Anderson, KWV International Business Manager, adds that when KWV International started formulating a strategy for a Pan-Nordic approach to their business, the synergies and shared business ideals with Arvid Nordquist made them the ideal match.

"We have been present in the Nordic countries since 2002 with several of our brands on the food side which has taught us a lot.

"We have chosen to grow the Nordic business in close co-operation with our producers rather than by acquisitions of local companies. Our concept has been very successful and it feels like the natural next step for our wines to follow," says Erik Nordquist, Managing Director Arvid Nordquist HAB.

Dr Willem Barnard, CEO, emphasises that KWV, through the alliance with Arvid Nordquist, hopes to attain a higher degree of integration and efficiency of distribution in the Nordic region.

"This will benefit the consumer. We are closer to the market in these countries which enables us to efficiently follow, but also to create trends. We are looking forward to launching new products into these markets.

"The South African growth in the Nordic region is tremendous and without comparison, which indicates that the Nordic market will be even more important for us in the future," he said.

THE streamlining of the environmental impact assessment (EIA) process has been announced by the Department of Environmental Affairs.

While the EIA is a tool that is at the cutting edge of environmental management practise and the detailed, lengthy and meticulous information-gathering process associated with the use of EIAs has been used to manage the diverse range of new developments.

"It it is obvious that a 'one-size-fits-all' approach is not the most efficient and effective form of impact management, says Dr Crispian Olver, Director-General.

"This important regulatory instrument is being clogged up by applications that have relatively insignificant impacts and the cost to both government and developers cannot be justified in terms of any environmental improvements."

Now the National Environmental Management Act has been amended to allow for the use of new tools and the streamlining and fine-tuning of the EIA.

On Friday a new set of regulations and schedules were published in the Government Gazette for public comment.

These regulations will reduce the number of formal decisions required by officials and ensure that they request only the information required for decision-making.

It will also reduce the administrative burden and potential for delays through the submission of incomplete or inferior reports

Said Olver, "Government will not be serving the people of South Africa by investing the same amount of resources in the assessment of, for example, a farm diesel tank, as it does for a hazardous waste plant.

"We must justify our use of resources in terms of the environmental benefits accrued."

He further pointed out that "this is an exercise in improving service delivery. The quality of our assessments will not be reduced.

"On the contrary, the concentration of government's efforts on applications with significant rather than trivial impacts will enhance the quality of environmental impact management across the country."

'n STERK verkoopmaand in Junie het die motornywerheid gehelp om sy afset van nuwe motors en ligte handelsvoertuie in die eerste ses maande van die jaar met 19,4% te verhoog, vergeleke met die ooreenstemmende tydperk verlede jaar. 

Bestendige groei in die eerste ses maande het die motorafset met 20,1% laat toeneem, terwyl 17,7% meer ligte handelsvoertuie verkoop is.

"Die Suid-Afrikaanse motornywerheid is goed onderweg om 'n verkoopjaar soos min te beleef," meen Mike Whitfield, Nissan SA se direkteur vir bemarking en verkope. 

"Motormaatskappye het daarin geslaag om bestendige groei in die eerste helfte van die jaar te handhaaf, danksy 'n sterk vraag van verbruikers - wat gegrond is op volgehoue en gesonde ekonomiese omstandighede.

"Indien hierdie omstandighede, soos rentekoerse en voertuigpryse wat grootliks onveranderd bly, voortduur, kan ons uitsien na verdere groei in die tweede helfte van die jaar," sê Whitfield.

"Nissan Suid-Afrika het die beste motor- en ligte handelsvoertuigverkoopsyfers vir Junie sedert 1995," het hy bygevoeg.

"Hoewel die Nissan 350Z eers aan die einde van Januarie in Suid-Afrika bekend gestel is, is dit goed gevestig as die voorverkoper onder sportmotors.

"Die Nissan X-Trail is die naasbeste verkoper onder sportnutsvoertuie van enige grootte in Suid-Afrika, met 'n verkoopsyfer van 1 300 in die eerste ses maande van die jaar.

"Die Hardbody-reeks enkel- en dubbelkajuitbakkies is in 'n sterk tweede plek in die markafdeling vir eentonners, met die dubbelkajuit eerste in hierdie klas.

"Die Nissan 1400 halftonbakkie en die Almera sedan staan ook elk in 'n sterk tweede plek in hul onderskeie markafdelings."

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