Positive signs for Property as SA makes history again
Category SA Property Market
History was once again made in SA this week as Jacob Zuma became the second President in 10 years to resign from office before his term was up – and the property sector is expected to rebound as a result.
That’s the word from Chas Everitt International CEO Berry Everitt, who says: “South Africans should be proud of the fact that we are able to get rid of ineffective and corrupt leaders without disrupting our hard-won democracy and resorting to bloodshed. It has arguably taken too long this time and we do have much economic damage to repair, but the fact is that we can immediately begin to do this because we are at peace.
“What is more, consumer, business and investor confidence in our economic future is rising by the day. The rand/ dollar exchange rate is the best it has been in more than three years, foreign investors are starting to make good on promises made to Deputy President Cyril Ramaphosa during the World Economic Forum in Davos earlier this year, and property sales have been hitting record highs for the past few weeks just in anticipation of Mr Zuma’s resignation.”
If things continue in this way, he says, and Mr Ramaphosa is able to deliver on the economic reform he has promised, several further positives for property can be expected to emerge over the next few months, including:
*Higher-than-expected economic growth;
*An increase in employment;
*A decrease in the inflation rate;
*Lower interest rates;
*No further downgrades in SA’s international debt ratings;
*Rising foreign investment in SA;
*The expansion of the mining, tourism, agriculture and manufacturing sectors; and
*The development of new infrastructure to counter the effects of drought.
“Any or all of these will increase confidence in the property market, make it more affordable for people to buy their own homes, make lenders more willing to grant bonds, boost the demand for residential property and ultimately cause prices to rise.
“And we have confidence that although there may be some obstacles to overcome as a result of the national Budget next week, none of these are going to be a major setback for the real estate industry in the light of the current positive mood in the country – and the rising demand we are already experiencing across the board.”
Author: Meg Wilson