The effect of SONA on the South African property sector

Posted On Wednesday, 06 February 2019 16:16 Published by
Rate this item
(0 votes)

A highlight on South Africa’s political calendar kicks off tomorrow at 17h00.

 JOHN-JACK-

The State of the Nation Address (SONA) 2019 marks the official opening of Parliament for the new year and will give President Cyril Ramaphosa an opportunity to address political policies and key challenges that lie ahead. This address will have a direct impact on various business segments, and of course investor confidence.

The CEO of Galetti Corporate Real Estate shares his thoughts on why anyone in the property game should be watching the SONA address closely.

John Jack, Galetti Corporate Real Estate CEO a successful property market relies heavily on a strengthened economy for investment. Investors need to believe that their money will be secure and protected, and this security is encouraged by positive policies and sustainable taxes.

President Ramaphosa’s address will give an indication of the direction that the economy will progress and investors will be watching it closely..

Everyone will be watching the address tomorrow hoping that the message gives clarity to the business sector as a whole. Clear policy allows occupiers and investors to take decisions related to their real estate portfolios. From an occupier perspective, whether to expand to new premises or consolidate their footprint into a smaller building will be front of mind. 

This is driven by changes in their employee count and/or inventories held. For investors, the decisions would be whether to sell or hold on to their portfolios in anticipation of reduced vacancies and capital growth. International investors will be watching it closely and so should anyone in the property game. South Africa needs foreign investment, but international investors need security and we need to give them confidence. There is a lot resting on tomorrow’s SONA address.

A key topic of interest will be the matter of land expropriation without compensation, which hopefully will be addressed in such a way so as to reassure foreign investors.

Another main focal point will be corruption President Ramaphosa has already been under fire from the governments of Germany, the United Kingdom, the USA, the Netherlands and Switzerland. The memorandum written to the presidency – signed by all five countries – spoke of a concern about the challenges of foreign investment and so this part of the SONA address is an important one.

SONA will be televised on various broadcast networks such as eNCA and SABC from around 17h00 tomorrow. Parliament’s Youtube Channel will also be airing the address and various media outlets will be sharing highlights of the events as they unfold.

Don’t forget to tune in.

Last modified on Wednesday, 06 February 2019 16:35

Most Popular

Balwin's Munyaka registers record R850 million in opening weekend sales, selling 555 apartments

Mar 09, 2020
Steve_Brookes_Balwin_Properties
JSE listed Balwin Properties, a developer that cares about environmentally responsible…

Balwin Properties and ABSA launch South Africa’s first green home loan

Mar 13, 2020
Apartment 71933
JSE-listed Balwin Properties Limited (Balwin Properties or the Company) and Absa Group…

Growthpoint reports a steady first half with its growth strategies paying dividends

Mar 11, 2020
Growthpoint Properties Group CEO Norbert Sassee
Growthpoint Properties (JSE: GRT) reported distributable income growth of 2.2% to R3.2bn,…

Spear REIT launches innovative self-isolation campaign for returning travellers in Cape Town, South Africa to combat COVID-19:

Mar 18, 2020
Double Tree Op
JSE listed Spear REIT Limited, the owner of the Double Tree by Hilton Cape Town, is the…

Financial Fitness – Is this the right time to buy property?

Mar 20, 2020
Governor Lesetja Kganyago SARB1
With the South African Reserve Bank’s announcement of interest rates cut of 100 basis…

Please publish modules in offcanvas position.