select
|

Steady repo rate good news for property market

Today’s decision by the Monetary Policy Committee to keep the repo rate steady is good news for the residential property market, says Dr Andrew Golding, CE of the Pam Golding Property group.

“Maintaining stability in the interest rate sends a positive message and reinforces much needed confidence among home buyers and investors, and hopefully will further improve sentiment and add impetus to the recovery in the property market,” he says. “Coupled with this is the fact that mortgage lenders are demonstrating an increased appetite for lending which is ultimately the most important driver of activity in our property market.

“One does however need to be circumspect regarding this optimism  in the light of CPI (Consumer Price Index) inflation edging upwards and as a consequence the fact that  consumers continue to be beset by rising food and fuel costs, as well as electricity, water and municipal rates and tariffs, all of which erode disposable income. Another source of concern is the extent to which the country’s GDP growth is lagging targets required for sustainable growth, which is necessary for the property market to prosper and thrive.

“On another, positive note, the peaceful election with very little disruption served to reassure markets - the property market included.”

Dr Golding says the Pam Golding Property group is noting brisk market activity across all price bands. The top end from R10 million and upwards of R20 million is moving strongly, while the price bands both above and below R5 million are experiencing strong  and increasing activity.

He says developers are also more and more active, bringing stock to market in prime locations in high demand areas - mainly in metropolitan areas, and geared to cater for specific pricing requirements. The rental market is buoyant, adding further appeal for buy to let investors.

“As is generally the case the market adjusts and adapts to new challenges and demands and the ongoing resilience of South Africa’s property market continues to attract aspirant home buyers and investors who appreciate the sound investment benefits of home ownership over the medium to long term,” adds Dr Golding.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
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.
        
    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