Property Barometer – Weekly Comment

Early in 2015, FNB expressed the belief that oil, and its major price slump, would be a boost to the fortunes of the residential property market, providing some support for an energy-guzzling world and domestic economy, whilst also contributing greatly to containing CPI (Consumer Price Index) inflation and thus the magnitude of interest rate hikes.

FNB believes that this, indeed, was the case, although there was a host of other negatives, such as a simultaneous slump in many of South Africa’s export commodity prices, which prevented any strengthening in an already-weak economy.

Nevertheless, South Africa’s economy and property market were far better off with low oil prices than what it would have been with high oil price, had all of the other things in 2015 turned out the same as what they did.

Read more here: Property_Barometer_ Property_Weekly_11_Jan_2016