SARB leaves Repo Rate unchanged after only 1 x 25 basis point cut in the current cutting cycle. Weak consumer confidence likely to remain, and shift to a more cautious consumer expected to continue says John Loos, Household and Property Sector Strategist.

Examining recent years’ of improvement in both the Household Sector Debt-to-Disposable Income Ratio (decline) as well as the Household Sector Net Savings Rate (rise), it would appear that weak consumer confidence levels in a stagnant economy are encouraging households as a collective towards a more cautious financial approach.

Second quarter statistics (Q2 2017) from ooba, South Africa’s leading bond originator, show nominal positive growth year-on-year of 3.6% in the Average House Purchase Price.

Low growth in household credit and mortgage balances in the first half of 2017, with home loan repayments showing homeowner financial strain.

The Reserve Bank’s Monetary Policy Committee (MPC) on Thursday reduced the repo rate by 25 basis points to 6.75%.

The FNB Holiday Towns House Price Index, comprising towns (both coastal and inland) whose housing markets are deemed to be strongly driven by holiday home demand, has had a reasonably good run since around 2013.

Recently, there have been hints emanating from our FNB Estate Agent Survey that foreigner demand for local residential properties may be declining.

It is important to understand that, due to significant resistance by home sellers to house price declines, in times of economic and residential demand slowdown the residential market can often move away from market equilibrium price.

New York, San Francisco, Zurich, Hong Kong and London top the league table of the most expensive places to build. 

Listed property specialist Plexus Wealth has launched a second property fund, the Plexus Wealth BCI Flexible Property Income Fund, to provide investors and retirees with a higher income option.