Property sector needed more decisive action from SONA 2020

Posted On Sunday, 16 February 2020 12:16 Published by
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As anticipated, President Cyril Ramaphosa spoke to the urgency for economic growth and the need for a serious and sustainable increase in the employment rate in his State of the Nation address last night. 

Property sector needed more decisive action from SONA 2020

Furthermore, it was encouraging to hear that issues like corruption, government debt and the state of Eskom will be addressed. It is now essential that these matters are, in fact, tackled in a realistic and measurable way. 

The health of the property sector is directly related to the wellbeing of the economy at large. In order for this sector of the economy to grow, we first need to see growth in employment numbers, as the most foundational step. 

We were disappointed that there was no clear direction offered on the question around land expropriation without compensation, other than that “government stands ready… to table an Expropriation Bill that outlines the circumstances under which expropriation of land without compensation would be permissible”. It's a highly sensitive, very contentious issue with far-reaching effects, and one that we need certainty on.

Other interesting points worth nothing that pertain to the property sector is the estimation that some R9 billion in private investment will be leveraged for the construction of rental accommodation for low-income earners. Student accommodation too is set to leverage as much as R64 billion in private development. 

The efficacy of these plans remain to be seen, of course. In the meantime, it's business as usual for the property sector as we remain committed to growing and developing the industry in an equitable and sustainable way. 

Last modified on Monday, 17 February 2020 12:29

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