Dr Andrew Golding, CE of Pam Golding Property Group, comments on repo rate and the property market

Yesterday’s (18 July 2013) decision by the Monetary Policy Committee meeting to keep the repo rate stable was generally anticipated by market commentators, and, taking into account the heightened inflationary risks viewed against the backdrop of a still sluggish economy, the MPC’s stance appears to be a considered and moderate approach.

While such decisions depend on current economic data which is subject to influence by a variety of macroeconomic factors, including global impacts, we are of the view that interest rates will remain stable for the remainder of 2013.

From a national property perspective, Pam Golding Properties remains optimistic as housing sales by the PGP group have  continued to increase steadily year on year with monthly sales averaging at over R1 billion. While all regions in the group are reflecting significant growth in sales turnover, those which are performing exceptionally well for the financial year to date (March to June 2013) are the Western Cape (with the Cape Town metropolitan areas experiencing a very busy winter season despite this traditionally being a quieter trading period), Gauteng and KwaZulu-Natal, while our sales of residential property in prime overseas destinations such as Eden Island in Seychelles and in Mauritius are considerably exceeding expectation.

Despite ongoing challenges for consumers in respect of rising costs of fuel, electricity, food and property rates, coupled with a stricter mortgage finance regime, we note a certain uptick in the residential property market in South Africa in general. There is an increasing sense of ‘normality’ in the market as properties change hands on a regular basis and for the usual reasons of relocation for business or personal preference, upgrading or downscaling as individual situations change in life, first time buyers entering the market, among others.

While the market for homes priced below R3 million remains the most active, there is a greater spread of interest and sales activity taking place across all price sectors, including the price brackets above R3 million and over the R10 million and R20 million mark. While sellers are becoming accustomed to the current trading conditions and need for realistic, market-related pricing, the flow of stock becoming available for purchase is not always sufficient to meet the demand, resulting in stock shortages in some areas and in some instances seeing a number of offers competing for one property. Pam Golding Properties’ outlook remains positive for the future and for the forthcoming year ahead (2014).

  Comment on this Article

  Please login to post comments

Post to my facebook wall
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.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us