Although most South Africans will understandably be disappointed, today's (9 October 2008) decision by the Monetary Policy Committee to keep the repo rate unchanged is to be expected given that our economy continues to experience inflationary pressures.
Consumers were hoping for some relief as were most economic sectors such as retail, motor vehicles, leisure and of course the residential market, which has become subdued since the heady days of the property boom.
While the impact on South Africa of the global fall-out experienced in international markets is not yet clear, so far it appears that our country,
while not immune to the impact of such events, is relatively insulated. As far as property in general is concerned there is a broad based acknowledgement that this is an important asset class in its own right, with bricks and mortar seen as one of few medium to long term investment safe havens.
This has been amplified by the sales performance of the Pam Golding Property group - during the period from June to September (2008) we have experienced ever improving trends in terms of sales turnover and general activity. This improvement was underpinned by exceptional performances in various areas widely spread around the country, including the Western Cape's Atlantic Seaboard and Stellenbosch, and Pretoria and Northern Suburbs in Gauteng. In addition, we continue to achieve steady sales to cash buyers which reinforces the ongoing strong confidence in the property market in general.
As events unfold internationally we will gain a clearer perspective of our own situation in South Africa and to what extent our markets will be affected. At present and for the foreseeable future it seems apparent that fundamentally we are in a sound and stable economic situation despite the challenges we face.
For further information contact Dr Andrew Golding, CE of the Pam Golding Property group on 021 7101700