Today’s decision by the Monetary Policy Committee meeting to keep the repo rate steady was anticipated by most market commentators.
However, while inflationary concerns appear in the main to be contained at present, further stimulus for the South African economy in terms of a rate cut would have been a welcome move, particularly against the backdrop of a subdued global economy and its concomitant impact on our local economy and market trading conditions.
From a residential property perspective, the market seems to be re-emerging in a gradual recovery and Pam Golding Properties continue to achieve increasing sales volumes across all regions. Buyer activity in general is resuming not only due to a pent-up demand, but also as a growing middle class sector enters the property market and demonstrates an appetite for property acquisitions.
Access to credit remains a key issue for aspirant home buyers due to stringent qualifying criteria, however, it is encouraging to note that sales in the price range up to R1.5 million make a significant contribution to total market sales. This is also a sector of the market which would benefit from a further reduction in the interest rate, not only as a confidence booster, but also helping offset rising costs in terms of electricity, fuel and food prices and property rates.
Having said that, Pam Golding Properties continues to conclude sales to purchasers with access to cash as well as to buyers across all price ranges, and notes that sales activity is brisk in very high demand areas of the country, resulting in shortages of stock.
Confidence in residential property as a sound medium to long term investment continues to gather momentum, especially among a new generation of savvy younger buyers. PGP is also seeing a growing appetite among high end buyers not only for luxury homes in South Africa but also in highly desirable destinations abroad, such as Seychelles, Mauritius and London. As South Africa’s residential property market continues to show resilience, we are optimistic in regard to the market for the remainder of 2013.
For further information contact Pam Golding Properties on 021 7101700 or email email@example.com.