Property Market Still Conducive to New Home Buyers - Ooba - South Africa

Residential property prices showed a moderate decline during September, according to the latest results released by ooba, South Africa's leading bond originator. The September oobarometer price index revealed that the average house price decreased by 2% year-on-year to R838 645 from R855 729 a year earlier. Positive growth of 1.1% was recorded on a month-on-month basis in September.

According to Saul Geffen, CEO of ooba, he expects the current trend of monthly nominal slight negative or slight positive growth swings to continue for the remainder of the year. He attributes this volatility primarily to the changing mix of buyer profiles and properties purchased relative to the base year in 2010.

The continued growth in the average purchase price amongst first time buyers, with year-on-year growth of 6% to R 619 920 in September 2011 from R 584 890 a year earlier, reflects a trend of increased activity for first time buyers.

_____________________________________________________

CONTRACTORS AND DEFECTIVE CONSTRUCTION: WHAT CAN YOU DO?

Where a contractor's work is defective, you must allow him an opportunity to remedy the defects where he is "willing and able" to do so.

So held the Supreme Court of Appeal recently, finding that a contractor, engaged to construct a container depot, was entitled to cancel the contract because it was denied an opportunity to remedy defects in the works. The contractor's cancellation came after the employer held back payment in terms of an interim certificate and instructed the contractor to cease all remedial work, feeling that the method employed to remedy the defects was inadequate.

The employer then claimed damages from the contractor for breach of contract, but its claim failed. The Court held that "where a contractor is willing and able to attend to defects that manifested themselves prior to final completion being reached ..., such contractor cannot be in breach ... provided he remedies such defects with due skill, diligence, regularity and expedition".

Bear in mind that every case will be different, and that your particular construction contract may have specific terms impacting on disputes over defective work - take advice in doubt!