No quick fix for SA’s Budget, but there’s some hope….

Berry Everitt, CEO of the Chas Everitt International property group, says that the very detailed State of the Nation Address dealt with all of the economic and social issues that are currently of concern to the real estate industry, including the need to rebuild investor and consumer confidence in SA, stimulate economic growth, accelerate job creation and eliminate widespread corruption.

The Firstrand economic team expects a 25 basis point interest rate hike this week when the SARB (South African Reserve Bank) MPC (Monetary Policy Committee) meets to deliberate on interest rates.

With inflation still within the target range, but with concerns following a round of fuel price increases and other potential inflationary impacts, as was anticipated, the Monetary Policy Committee kept the repo rate unchanged following this week’s meeting, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

In the 2nd Quarter 2018 FNB Estate Agent Survey Buy-to-Let demand is perceived to be slower of late, along with moderating near term expectations amongst agents.

May 2018 saw the FNB House Price Index growing by a faster 4.6%, year-on-year, up from the previous month’s 3.8% in April, and from a February 2018 low of 2.8%.

As expected, the Monetary Policy Committee kept the repo rate stable, with analysts and market commentators ahead of today’s announcement (24 May 2018) pointing to a more hawkish stance amid a weaker rand.

Saturday, 12 May 2018 11:32

Bond approval statistics on the rise

With VAT increases and generally soaring prices taking their toll on South African pockets, it’s no wonder most people have been buckling up for tough financial times ahead. The cost of living is certainly climbing, but as it turns out, it’s not all doom and gloom on the horizon.

There have been signs of significantly improved economy-wide sentiment early in 2018, an improvement that many link to the change in the ruling party’s leadership, which translated into a change in the country’s President too.

Today’s (28 March 2018) announcement of an interest rate cut of 25bps, coupled with Moody’s decision to not only leave South Africa’s credit rating unchanged at one notch above junk status, but to also upgrade the outlook from negative to stable, are positive factors which should provide welcome stimulus for the residential property market, says Dr Andrew Golding, CEO of the Pam Golding Property group.

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