The latest repo rate decision by the SA Reserve Bank means no festive celebrations for the property market, said Brian Falconer, CEO of Colliers Residential on Tuesday.

"We would have been delighted had Gill Marcus seen fit to cut the repo rate by a further 50 basis points in her first act as Governor of the SA Reserve Bank," said Falconer.

"It would have been just the shot in the arm the property market needed ahead of the festive season.

"Added to the 500 basis points cuts we have enjoyed over the last 12 months, an extra rate cut would have improved the mood of the property market, and encouraged fence-sitting buyers to make a decision, especially as they would have had time on their hands to go home-viewing in the holiday period," added Falconer.

"There can be no doubt that 2008 and 2009 have been the toughest years in living memory for anyone in the property market today," said Falconer.

"Chipping away at an interest rate that has hindered homebuyers from entering market, and home sellers from putting their property on the market, has helped free up the market gradually, and we hope for a proper recovery over the next 12 months.

"We concur with several industrialists and market commentators who have called for a repo rate settling down at around 5%," added Falconer.

Source: I-Net Bridge