select
|

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
  
2000
Characters remaining


    Latest Property News
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
        
    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