select
|

Despite economic pressures, South Africans reaffirm confidence in residential real estate

As anticipated and on the back of a reduced inflation rate, the Monetary Policy Committee announced its decision yesterday to hold the repo rate steady, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
 
“This is positive news for homeowners with mortgages and aspirational home buyers, particularly as the impact of increased fuel costs and in particular the significant hike in the fuel levy, are weighing in, not to mention the potential ripple effect across the economy of a proposed whopping 25 percent increase in electricity tariffs.
 
“Power shortages, coupled with steep annual increases in energy costs are placing rising pressure on consumer spend and business confidence in general. If this request is granted, it will boost inflation. At the same time, higher individual tax rates and ever-increasing municipal tariffs and property rates are set to place housing disposable income under further pressure.
 
“However, the reduction of transfer duties payable on property transactions below R750 000 (vs the previous threshold of R600 000) will provide some relief and incentive for the majority of aspirant home buyers in South Africa - as Lightstone data suggests that about two-thirds of both freehold and sectional title sales during the past 12 months were priced below R800 000.
 
“We at Pam Golding Properties  remain positive regarding the outlook for the South African residential property market and for house prices, with an increase in high single digits still anticipated, allowing for a real increase in the value of homes for existing home owners.
 
“Pam Golding Properties' sales reaffirm the ongoing trend towards property acquisition as a sound investment choice, with exceptional total sales of R1.8 billion concluded in February 2015, which is 14 percent ahead of February 2014.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 24 Nov 2017
      Demand for secure estate living in Hout Bay has risen sharply in recent years, precipitating a spike in development with estate homes now accounting for 20.24% of the property landscape with the launch of an exclusive new gated development on 26 November adding 20 more units to the existing 1250 estate homes.
    • 24 Nov 2017
      There are some things that money can’t buy – spectacular views from Mouille Point to the V&A Waterfront and a trendy and lively neighbourhood that encapsulates the very best of the Cape Town lifestyle.
    • 24 Nov 2017
      Tshwane’s four-bedroom Mayoral mansion, nestled among ambassadorial residences in the upmarket suburb of Muckleneuk, fetched R5.1 million after spirited bidding at High Street Auctions’ final sale of the year.
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK