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

Empowering women in engineering through B-BBEE

Jan 13, 2020
Andrew Yorke
Working to embrace the spirit of transformation and developmen.

Cheap cement imports crippling local industry

Jan 16, 2020
Databuild CEO Morag Evans
Local cement manufacturers are being severely undermined by cheap imports from countries…

Repo rate cut by 25 basis points

Jan 16, 2020
Governor_Lesetja_Kganyago_SARB1
The Reserve Bank has reduced the repo rate by 25 basis points to 6.25% in line with…

Property in 2020 - here's what's happening

Jan 16, 2020
Carl Coetzee CEO of BetterBond
With the political, economic and social landscape in South Africa being what it is, i.e.…

The rising tide of the silver economy

Jan 16, 2020
Chris Cilliers
Whilst we may not yet have discovered the long-coveted elixir of eternal youth, the truth…

Please publish modules in offcanvas position.