Keeping repo rate stable makes sound economic sense

While it appears South Africa’s repo rate still remains in a rising cycle, yesterday’s decision by the Monetary Policy Committee to pause and keep the rate stable makes sound economic sense given the stagnant economy and ongoing cost pressures exerted on consumers, says Dr Andrew Golding, CE of the Pam Golding Property group.

“Household debt combined with rising interest rates has impacted consumer affordability, with South Africa’s largest bond originator, ooba, reporting a slowing in activity among first-time home buyers.

“The pause in the repo rate will provide aspirant and existing home owners with a further assurance of the sound medium to long term investment potential in property.”

Dr Golding says despite the prevailing economic challenges and socio-political issues currently hitting the news headlines, sustained confidence in the property market remains a bright spot on the radar.

“Successfully concluded transactions are also facilitated by the normal churn of activity as people relocate for a host of reasons including for business purposes, lifestyle change, access to educational facilities and pure investment.” 

Just this week the Pam Golding Residential Property Index reported on the fact that the country’s resilient residential property market seems to be rebounding with a modest increase in house price inflation.

“In line with this, and coupled with innovative marketing drives, Pam Golding Property group sales for April 2016 are six percent up on April 2015, while our year to date (March to April 2016) sales turnover has increased by nine percent on the previous year. 

“During April areas of notable high activity for the group include Pretoria, Cape Town’s Southern Suburbs and Hermanus. This is against the backdrop of consistently strong performance in the Western Cape’s Cape Town Metropolitan Region, the Boland and Overberg, Gauteng, KwaZulu-Natal North Coast and Garden Route, with growing activity in areas of the Eastern Cape.

“Home buyers demonstrate an increasing desire to own their own homes while other trends reflect a continued high demand for rental accommodation, secure estate living, convenient urban apartments in commercial hubs and family homes with access to good schooling.

“Investors seek not only well-positioned income-generating properties ie buy to let accommodation, as well as second and third properties situated both nationally and abroad, thereby expanding their property portfolios and spreading their wealth across continents.”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 25 Apr 2018
      Whether you are a seasoned seller or new to the game, putting your home on the market is an exciting moment. To ensure you get the best possible outcome these 8 value adding additions to your home is worth the effort.
    • 25 Apr 2018
      After four years of unprecedented growth fuelled by semigration, the Southern suburbs market faced a number of challenges in 2017, including dwindling affordability and a marked slowing in house price growth with many sellers forced to lower their prices in order to secure a sale.
    • 25 Apr 2018
      Mall of Africa, is celebrating its second year of sensational success. This splendid super-regional shopping centre first opened on 28 April 2016, and has grown in popularity, performance and profile since then.
    • 25 Apr 2018
      While the role of trustee in a sectional title scheme is a voluntary and unpaid position, it is one that comes with huge responsibility. Trustees have a fiduciary duty towards their scheme, says Chinelle Hewit, Operations Manager at sectional title finance company Propell.
    • 24 Apr 2018
      The thing about the property ladder is that at some point in our lives we all have reason to want to climb a rung or two higher. Sometimes, it’s because we’ve outgrown our previous dream home, or because we want to be in a better neighbourhood that’s closer to work or to schools. Sometimes it’s because our circumstances have changed, and we’re taking care of elderly parents or relatives. Sometimes, it’s just because we want a property that reflects the financial status our hard work has won.
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us