South Africa slips in global property ranking

South Africa was no longer one of the world’s top 10 performing housing markets according to a UK-based property group, Knight Frank. It said that according to the latest global house price index, South Africa has moved down to 19th position in the second quarter of 2008. A year earlier it was 7th on the list.The index shows the southern African nation’s house price growth slipping from 15.5 percent to 3.8 percent over the one year period. Nick Barnes, the head of international research at Knight Frank, believes the reserve bank’s five basis point hike had “severely” knocked the affordability of the South African housing market. The bank has raised its prime lending rate by 500 basis points to 15.5 percent since June 2006, when the tightening cycle started. Market commentators are confident the tightening cycle has ended, foreseeing rate cuts as early as next year. Three years ago South Africa boasted the world’s fastest growing housing market according to Knight Frank, appreciating at a whopping 30 percent annually. Barnes believes, “South African consumers are highly indebted and it seems likely that prices will fall in the near future.”Many local property analysts are still bullish that the property market will make a recovery soon, and that any fall-off in prices will be short-lived. South Africa is not the only country where housing prices have cooled significantly. The United Kingdom’s property market slumped from 14th position to 37th place over the same period, with prices on average down -3.9 percent during the second quarter 2008. In terms of performance, the United States is near the bottom of the pile, recording an average price fall of -16.8 percent.

Sierra Leonean president declares asset

The assets of the President of Sierra Leone, Ernest Koroma, have been made public as part of moves to fight corruption, a statement from the state house revealed. He perhaps becomes the first African president to declare his assets. The act follows the passage of the new anti-corruption bill of 2008.The new Bill, which was signed by the president, gave extensive powers to the Anti-Corruption Commission (ACC), a body which was set up by former President Kabba to fight corruption in the country.A press release from state house on Monday, said the president’s action was a clear indication of his Government’s commitment to remove the ‘cancer’ of corruption in Sierra Leone. An act, which is unusual of most African presidents.“This is unique not only for the sub-region but for Africa as a whole. And it is a clear message that this cancer must be taken seriously,” he emphasized. The President said he was fulfilling a long desire he had even before taking over the reins of government. President Koroma said if his government succeeded in reducing corruption and leakages in revenue collection, Sierra Leone would have no business begging for loans and aid abroad.Speaking in an interview, the Presidential Affairs Minister Mr. Alpha Khan, said the act is a long promised commitment by the president during his campaigning periods. He said, “his (president) action is a commitment in weeding out corruption in Sierra Leone.”The new law now makes it mandatory for all public officials, including ministers, heads of para-statetals to declare their assets before assuming power.It could be recalled that President Koroma won the last presidential election nearly a year ago in a tight race which was fought with the then ruling Sierra Leone’s People’s Party. During his inaugural speech the president assured Sierra Leoneans that the fight against corruption will be his Government paramount priority among other things.