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
Characters remaining

    Latest Property News
    • 22 Jun 2018
      The rental market in many Johannesburg suburbs has shown encouraging signs of revival this year but it remains a competitive market and landlords who best cater to their market’s needs will reap the healthiest returns.
    • 22 Jun 2018
      Home design is constantly evolving to reflect the changing needs of society. We look at some of the ways in which our use of space is changing.
    • 22 Jun 2018
      While estate agents can help the seller with correctly pricing the property and marketing a property to the right pool of potential buyers, at the end of the day it’s the impression that the property will make on buyers that counts the most.
    • 21 Jun 2018
      Anyone who’s ever been involved in a building project that’s gone wrong will appreciate the importance of adequate insurance cover in the construction industry.
    • 21 Jun 2018
      A recent news story about a blind tenant caught in a legal battle with his body corporate over letters and notices he was unable to read and consequently comply with has raised the question: what are the legal obligations for landlords with disabled tenants?
    • 21 Jun 2018
      A trend that’s taken the world by storm in recent years is that of hygge (pronounced: hue-guh), a Danish concept that is about creating intimacy, connecting with loved ones and taking pleasure in small, ordinary things.
    • 20 Jun 2018
      Buying or selling real estate isn’t as easy as it is portrayed sometimes, especially if there is a death of a party during the transaction which can make it awkward, tricky and inconvenient.
    • 20 Jun 2018
      With interest rates remaining at historic lows and banks continuing to compete for mortgage finance business, first-time buyers with funds at their disposal are currently well-placed to gain that initial foothold on the property ladder, particularly in the light of the slightly lower growth rates currently experienced in residential property values.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us