Priced at R45 million thro ugh Pam Golding Properties, Trovato House is an impressive manor house in Upper Wynberg with late Victorian and neo-classic architectural details.

“As expected, the Monetary Policy Committee meeting today (18 July 2024) announced that the repo rate would again hold steady at 8.25%, with the prime lending rate therefore remaining at 11.75% - for the seventh consecutive meeting.

According to a recent Savills report which explores global trends in the world of real estate, after several years of global disruption and macroeconomic volatility, there is cause for optimism in real estate markets as healthier, greener living becomes increasingly important.

London’s reputation for capital preservation and stable returns in the residential property market remains unassailable, despite global uncertainties. As a result, it remains a top choice for property investors seeking steady income and long-term investment and capital growth.

Today’s announcement by the Monetary Policy Committee (MPC) that the repo rate would remain unchanged at 8.25% - meaning that the prime rate holds steady at 11.75% - was disappointing for consumers with significant borrowings, including those with existing mortgages as well as first-time home buyers, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

With the inflation outlook deteriorating since the previous Monetary Policy Committee meeting – with the headline inflation rate again breaching the upper limit of the 4-6% target for the second consecutive month at 7.4% in June 2022, it was inevitable that a decision would be taken to further increase the repo rate, the question was simply by how much.

The Pam Golding Residential Property Index highlights some ongoing shifts in the national housing market. These include the fact that the Covid-induced boom in freehold residential property price inflation continues to fade when compared with sectional title, with the gap narrowing to a revised 2.4% in April 2022, having peaked at 3.9% in March 2021.

Given the vulnerability of South Africa’s economy in the wake of last week’s unrest, as anticipated, the Monetary Policy Committee adopted an accommodative approach by deciding to keep the repo rate steady at 3.5%, which leaves the prime rate at 7%, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

Over the past 15 years, the sectional title market in South Africa has become entrenched as a significant component of real estate sales, rising from 13% of total sales in 2005 to nearly 28% in 2020, says Pam Golding Properties.

Motivated by the prevailing, historically low interest rates and further incentivised by banks’ lending appetite and sound purchasing opportunities, South African first-time buyers across the country continue to capitalise on the favourable buying environment and demonstrate confidence in the residential property market by acquiring their own homes, says Dr Andrew Golding, chief executive of the Pam Golding Property group.