While economic growth is expected to be mildly better in 2017, this is not yet expected to be enough to turn Real Household Disposable Income growth positive on a per capital basis.
October 2016 saw year-on-year growth in the average nominal value of middle-segment homes in the South African housing market remaining relatively low against the background of trends in and prospects for the economy and the household sector.
The Commercial Property Market has been seeing its average capital growth slowing in recent times, driven by economic growth weakness and interest rate hiking of recent years.
The Residential Mortgage Market is weak in terms of transaction growth, but solid in terms of debt repayment performance under weak economic circumstances.
In the 2nd Quarter of 2016, the TPN-FNB National Average Gross Residential Yield rose slightly for the 1st time since the 1st quarter of 2014.
I have previously referred to the South African economy as just muddling along – we aren’t shooting the lights out, but we haven’t sunk into the depths of a recession.
The Reserve Bank’s Monetary Policy Committee (MPC) has kept the repo rate unchanged at 7% per annum.
The annual Consumer Price Index (CPI) eased to 5.9% in August 2016, Statistics South Africa (Stats SA) announced on Wednesday.
2nd Quarter 2016 SARB New Mortgage Lending data showed a 2nd consecutive quarter’s year-on-year decline.
South Africa’s current account deficit narrowed to 3.1% of gross domestic product (GDP) in the second quarter of this year.

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