With the residential property market driven mainly by sentiment, today’s decision by the Monetary Policy Committee to keep the repo rate unchanged augurs well for further confidence among home buyers, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
“Fuelled by a pent-up demand as a result of the economic recession which put the brakes on home buying, as well as an exponentially increasing appetite for home ownership among a burgeoning middle class market, over the past two years the residential property market has demonstrated an ongoing resilience and resurgence in home buying.
“While indications are that the repo rate is on a moderately tempered upward cycle, it is positive for South Africa’s economy as well as the housing market that interest rates will at least for now, remain stable, particularly at this juncture of the year, when many aspirant home buyers and existing home owners are planning for the year ahead and considering relocations and property acquisitions.”
Dr Golding says the forthcoming holiday season is also a period when leisure seekers – in particular those with families, visiting popular coastal and other holiday destinations, consider owning a second home for weekend or longer getaways in order to enjoy quality time out from busy schedules.
“Furthermore, with developers and investors increasingly evident and active in the market amid a growing swing towards conveniently situated, modern apartment living in prime hubs around the country, it is anticipated that the historically low interest rates will continue to boost confidence in this sector of the market.