The South African economy continues to rebound from the 2020 recession, albeit at different growth rates across sectors, the South African Reserve Bank’s Financial Stability Review (FSR) has revealed.

Thursday, 20 May 2021 23:11

Repo rate remains unchanged at 3.5%

The Monetary Policy Committee has decided against changing the repo rate, once again keeping it at 3.5% per annum, said Reserve Bank Governor Lesetja Kganyago.

Despite less than 300km separating the Eastern Cape cities of East London from Gqeberha (formally Port Elizabeth), the contrast in the residential rental property market could not be more significant.

The residential property market continues to strengthen, as interest rates remain at record-low levels after a year in which the repo rate remained below 4%, says Carl Coetzee, CEO of BetterBond.

JSE-listed diversified real estate investment trust Redefine Properties, has reported a lower distributable income per share of 26.2c for the interim period to 28 February 2021, driven principally by the impact of Covid-19 on the property sector and broader economy.

Flanagan & Gerard Group and Emfuleni Resorts, a subsidiary of Sun International (JSE: SUI), have officially commenced construction of Boardwalk Mall.

Recent reports on property market trends from Q1 2021 have revealed trends in South Africa which are both alarming and inspiring, depending on your position in the market.

Since the beginning of the pandemic, one of the biggest questions in real estate has been around office occupation as lockdown restrictions forced white collar workers to trade office desks for kitchen counters and coffee tables.

1st Quarter 2021 FNB Property Broker Survey of Rental Market Conditions – Brokers perceive recovery in Industrial and Retail market activity, but little sign of rising activity in the Office Market.

With South Africa’s inflation rate below the lower limit of the inflation target at 2.9%, and local inflationary expectations remaining well-anchored, it was expected that the Monetary Policy Committee would keep the repo rate unchanged, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

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