The latest SAPOA CAP & Discount Rate Survey indicates that for the last six months to November, the All Property discount rate weakened 20 bps to 14.5 % – whilst the aggregate cap rate weakened by 10bps to 9.3 %.
Significantly, it is the largest weakening in both these measures in four years which suggests that the expectation of higher interest rates seem to be playing on valuers’ minds given that the SARB’s Monetary Policy Committee has indicated that its officially in an interest rate tightening cycle (though it may be moderately based on the current available data).
Read more here: CAP & DISC RATE REPORT – NOV 2015
