select
|

Further stimulus for economy would have been a welcome move, says Dr Andrew Golding

Yesterday’s (23 May 2013) decision by the Monetary Policy Committee meeting to keep the repo rate steady was anticipated by most market commentators.

However, while inflationary concerns appear in the main to be contained at present, further stimulus for the South African economy in terms of a rate cut would have been a welcome move, particularly against the backdrop of a subdued global economy and its concomitant impact on our local economy and market trading conditions.

From a residential property perspective, the market seems to be re-emerging in a gradual recovery and Pam Golding Properties continue to achieve increasing sales volumes across all regions. Buyer activity in general is resuming not only due to a pent-up demand, but also as a growing middle class sector enters the property market and demonstrates an appetite for property acquisitions.

Access to credit remains a key issue for aspirant home buyers due to stringent qualifying criteria, however, it is encouraging to note that sales in the price range up to R1.5 million make a significant contribution to total market sales. This is also a sector of the market which would benefit from a further reduction in the interest rate, not only as a confidence booster, but also helping offset rising costs in terms of electricity, fuel and food prices and property rates.

Having said that, Pam Golding Properties continues to conclude sales to purchasers with access to cash as well as to buyers across all price ranges, and notes that sales activity is brisk in very high demand areas of the country, resulting in shortages of stock.

Confidence in residential property as a sound medium to long term investment continues to gather momentum, especially among a new generation of savvy younger buyers. PGP is also seeing a growing appetite among high end buyers not only for luxury homes in South Africa but also in highly desirable destinations abroad, such as Seychelles, Mauritius and London. As South Africa’s residential property market continues to show resilience, we are optimistic in regard to the market for the remainder of 2013.



  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 26 Apr 2018
      Banks are showing an increased appetite to lend according to first quarter (Q1 2018) property statistics recently released by ooba, South Africa’s leading home loan originator.
    • 26 Apr 2018
      Moving into a new home comes with such a long list of expenses that one often searches for ways to cut back on costs. Hiring a professional moving company is one of the first expenses that many buyers tend to try and work around, especially now that purse strings are even tighter owing to the VAT increase that took effect this month.
    • 26 Apr 2018
      Investors looking to buy a property offshore can potentially recoup their money faster through short-term rentals than traditional letting options, all the while earning income in a foreign currency.
    • 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.
        
    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