Election 2014 could have a positive outcome for the South African residential property market says Ronald Ennik, founder and CEO of Christie’s International-affiliated Ennik Estates.
“The results at the polls may well turn out to be the medicine so badly needed to put back on track a Government leadership that needs to re-embrace the integrity that has both anchored and driven the ANC for the past 100 years.
“And if it does, the post-election improvement in governance – particularly on the corruption front – will do wonders for economic confidence and sentiment…and, not least, help sustain the current uptrend in residential property sales,” says Ennik.
He says several key developments make this election significantly different from the past. They include:
- the rise of new minority parties like the EFF
- the increasingly critical voices of church leaders, including Archbishop Emeritus Desmond Tutu and Anglican Archbishop Thabo Makgoba
- the ANC-negative sentiment of respected former government ministers
- the “No Vote” campaign, launched by ANC struggle veteran Ronnie Kasrils
- the first-time impact, either way, of ‘born free’ voters – about a million of whom have reportedly not registered to vote
- and the reported decline in the past year (from 37% to 29%) in the number of young South Africans who feel the President is doing a good job running the country.
“Together, these and other factors are likely to have a negative impact on voter sentiment and, possibly, on the ruling party’s election majority.
In that event, eliminating, or at least curbing, corruption should top the post-election priority list of both the ANC and the Cabinet,” says Ennik.
“And, if the correct remedial action is taken, the resultant improvement in confidence and sentiment will add welcome impetus to the homes market,” he concludes.