Budget Reaction – RealNet

“Of concern is that Mr Manuel failed to address issues specific to the property industry including rising building costs, shortages of materials and skills, questionable building standards, long planning delays and over-extended property infrastructure said RealNet CEO Tjaart van der Walt, in his reaction to today’s national budget.

“The commitment to stabilising the electricity supply situation is welcome as being key to the future of the property market but it remains to be seen whether promises are converted into deeds.

“Encouraging ‘partnerships’ between government, the financial sector, developers and social housing organisations to address the needs of the affordable housing sector are welcome in that property ownership at these levels creates wealth, but Mr Manuel needs to spell this strategy out in greater detail.

“Increased infrastructure spending and an undefined ‘reinforced’ fight against crime are obviously also welcome commitments in that the property market is very sentiment driven. A commitment to reduce interest rates as soon as possible would have been welcome, based on Mr Manuel’s expectation that inflation will fall to an average of 4,9% in 2009.
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