Surveys, he said, have shown that political confidence – or the lack of it – can often be more important than such traditional decision influencing factors as interest rate levels.

Right now, said Rawson, the feedback he is getting from his colleagues, including many in fields other than property, is that political/house buying confidence has been significantly boosted by the far more decisive stance taken by President Zuma on maladministration, corruption and the advocation by out-of-line ANC members of policies not sanctioned by his cabinet.

“The dismissal of two cabinet ministers, the firing of the police chief, the enquiry into the arms deal and the fact that whatever the outcome, Julius Malema has had to go on trial, have all sent out a positive message that South Africa will not be allowed to drift into a chaotic Third World state.  These moves by the President along with the financial minister’s new mini-budget, have very definitely restored confidence in a leadership which appeared to be losing control.

Rawson said that what appears to be, at last, a stand against corruption, will be especially welcome.

“We have to recall that Clem Sunter in his “High Road” presentation listed a lack of corruption as one of the three most important factors leading to a successful society.  When state officials spend thousands on useless airline trips and expensive hotels or sign up leases (with colleagues) at three times the going rate, investors run fast.”

The more definite repudiation of nationalisation by various top state officials is also, said Rawson, sending out a good message to the market and it is, too, encouraging that the main opposition party in parliament is becoming increasingly multi-racial. 

“This,” he said, “should send a message to government leaders that their traditional supporters will tolerate only so much.”